For the complete report, get in touch with us at : info@netscribes.com Bottled water market is one of the fastest growing and competitive industries in China. It plays a major role in solving water pollution problems and providing the public with safe and convenient drinking water. Rising concerns amongst consumers regarding health and with increasing promotional activities; the market shows huge potential for players. The report begins with an overview to the bottled water market in China covering the market size and growth. It also gives a brief introduction to the various bottled water segments widely used in the market. It further shows overall import and export of mineral and aerated water, as well as the segmented share for major countries. An analysis of the drivers influencing the industry growth includes China’s rampant water pollution, increasing health awareness, poor quality tap water, huge population and increasing disposable income, panic water buying triggered by chemical spills and impact of natural calamities. The key challenges identified are increasing use of water purifiers and brand awareness and product differentiation. The key trends in the market have also been identified which include foreign players entering the market through acquisitions, launch of flavoured water, new packaging due to consumer concerns, domestic firms are targeting China’s premium bottled-water market and innovative market channels to promote premium brands. The competition section includes brief profiles of the major domestic and foreign players in the market. It also contains a snapshot of their corporation, their brands and business highlights, providing an insight into the existing competitive scenario.

1. Bottled Water – China
Bottled Water China
July 2011

2. Executive Summary
 Bottled water market in China grew from x mn tonnes in 20‐‐ to y mn tonnes in 20‐‐
 Annual double digit percentage sales growth is projected for bottled water
Market
 Increased emphasis on personal health and on quality food and drinks is leading a growing
number of Chinese consumers to turn to bottled water
 Drivers: Rampant water pollution, increasing health awareness, poor quality tap water, huge
Drivers & population and increasing disposable income, panic water buying triggered by chemical spills and
Challenges impact of natural calamities
 Challenges: Growing market for water purifier, brand awareness and product differentiation
 Foreign players entering the market through acquisitions
 Launch of flavoured water
Trends  New packaging due to consumer concerns
 Domestic firms are targeting China’s premium bottled water market
g g p
 Innovative market channels to promote premium brands
 National standard 2 was made public
Government  Central government published a modified version of National standard 3
Initiatives  National standard 4
 National Standard 5
 Market comprises of a large number of domestic players and steadily increasing participation
from foreign players, mainly through mergers & acquisitions
Competition  Some of the major players in the market are Company 1, Company 2, Company 3, Company 5,
Some of the major players in the market are Company 1, Company 2, Company 3, Company 5,
Company 6, Company 7, Company 8
BOTTLED WATER MARKET IN CHINA 2011.PPT 2

3. •Market Overview
•Export & Import
•Drivers & Challenges
•Trends
Trends
•Government Initiatives
•Competition
BOTTLED WATER MARKET IN CHINA 2011.PPT 3

4. Chinese bottled water industry is rapidly growing with a
boost in sales and large number of consumers
Market Overview Market Size and Growth
• Chinese beverage production is expected to reach x mn tons
mn tons in 20‐‐, three times the size in 20‐‐ 100 b
• Bottled water market will account for the highest +c%
80
share of the growth as it is estimated to reach y mn
60
tons in 20‐‐
• Bottled water market is one of the fastest growing 40 a
and competitive industries in China
d titi i d t i i Chi 20
• Market comprises of mainly two segments: 0
 Segment 1: Water from any source that is physically 20‐‐ 20‐‐e
processed to remove impurities
 Segment 2: Segment 2 contains mineral or other dissolved
Segment 2: Segment 2 contains mineral or other dissolved
Market Share ( 20‐‐)
substances that alters its taste or give it therapeutic value, Type 2 in
generally obtained from a natural source Retail Packs
– Segment 2 can be type 1 (with effervescence), or type 2 (without d%
effervescence) Bulk water
• Market is dominated by the usage of type 2 in retail
Market is dominated by the usage of type 2 in retail
packs
e%
Source:
BOTTLED WATER MARKET IN CHINA 2011.PPT 4

5. Imports form a large portion of the overall bottled water
market in China
Import – Overview Import – Mineral and Aerated Water
• Import of mineral and aerated water has increased USD mn
by x% CAGR from 20‐‐ to 20‐‐ +z%
20
• China imports mainly from Country 1 and Country 2 a5
a2 a3
15 a4
• Chinese people tend to rely more on the imported
a1
bottled water as most of its domestic water sources 10
are heavily polluted
I
Import of mineral and aerated water has increased by y%
t f i l d t d t h i db % 5
from 20‐‐ to 20‐‐ 0
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Import (Region Wise: 20‐‐) Import (Region Wise: 20‐‐)
Country 1
Contry1
l% f% Country 2
Contry2
Country 3
Contry3
k% Contry4 d% e%
% Country 4
g% c% Country 5
Contry5 a%
j% Others
Others b%
i%
h%
Source:
BOTTLED WATER MARKET IN CHINA 2011.PPT 5

6. Drivers & Challenges – Summary
Drivers
Rampant water pollution
Increasing health awareness
Increasing health awareness
Challenges
Poor quality tap water
Growing market for water purifier
Huge population and increasing
Huge population and increasing
Brand awareness and product
disposable income
differentiation
Panic water buying triggered by
chemical spills
Impact of natural calamities
BOTTLED WATER MARKET IN CHINA 2011.PPT 6

7. Trends – Summary
Foreign players entering the
market through acquisitions
Innovative marketing
g
channels to promote Launch of flavoured water
premium brands Key
Trends
Domestic firms are targeting
New packaging due to consumer
China's premium bottled‐water
concerns
market
BOTTLED WATER MARKET IN CHINA 2011.PPT 7

8. Domestic Players in the Market (1/9)
Company Snapshot: Company 1
Corporate Information Financial Performance
Revenue
Headquarters
d City 1
Ci 1 USD mn USD mn
Profit/ Loss a4
600 1.0
Founded 19‐‐
a1 a2 a3 0.8
400
Brands Brand 1 0.6
0.4
200
0.2
Key People Person 1– Chairman
0 0.0
20‐‐ 20‐‐ 20‐‐ 20‐‐
Business Highlights
Business Highlights
• Company 1 possesses an extensive nationwide distribution network as well as plants at strategic location
• As at the end of 20‐‐, the Group has x subsidiaries
•Bottled water segment is operated by some of its subsidiaries
• Established a strong recognized brand which was awarded ‘‘Title 1’’ and ‘‘Title 2’’
Source:
BOTTLED WATER MARKET IN CHINA 2011.PPT 8

9. Thank you for the attention
The Bottled Water ‐ China report is a part of Netscribes’ Food & Beverage Industry Series.
For more detailed information or customized research requirements please contact:
Gaurav Kumar
Phone: +91 33 4064 6214
E‐Mail: gaurav.kumar@netscribes.com
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Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,
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BOTTLED WATER MARKET IN CHINA 2011.PPT 9