Bottled Water - China

China's bottled water market has been experiencing significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: Chinese consumers have become increasingly health-conscious and are opting for healthier beverage options, such as bottled water, over sugary drinks. With rising concerns about water pollution and the safety of tap water, many consumers are choosing to purchase bottled water as a safer and more convenient alternative. Additionally, the growing middle class in China has led to an increase in disposable income, allowing consumers to afford premium bottled water brands.

Trends in the market: One major trend in the bottled water market in China is the increasing demand for premium and functional bottled water. Consumers are willing to pay a higher price for bottled water that offers additional benefits, such as enhanced flavors, added vitamins, or minerals. This trend is driven by the desire for healthier and more unique beverage options. Another trend in the market is the growing popularity of online sales channels. E-commerce platforms have made it easier for consumers to purchase bottled water online, offering a wide variety of brands and flavors. This convenience factor has contributed to the growth of online sales in the bottled water market.

Local special circumstances: China's rapid urbanization and industrialization have resulted in increasing concerns about water pollution and the quality of tap water. Many consumers in China do not trust the safety of tap water and prefer to consume bottled water. This unique circumstance has created a large market for bottled water in China.

Underlying macroeconomic factors: China's growing middle class and increasing disposable income have played a significant role in the growth of the bottled water market. As consumers have more money to spend, they are willing to pay a premium for bottled water brands that are perceived as healthier or more prestigious. Furthermore, the government's efforts to promote healthy lifestyles and reduce the consumption of sugary drinks have also contributed to the growth of the bottled water market. The Chinese government has implemented various initiatives to encourage the consumption of bottled water and discourage the consumption of sugary beverages, such as imposing taxes on sugary drinks and promoting the consumption of tap water. In conclusion, the bottled water market in China is experiencing significant growth due to changing consumer preferences, local special circumstances, and underlying macroeconomic factors. With increasing health-consciousness, rising concerns about water pollution, and the growing middle class, the demand for bottled water is expected to continue to rise in the coming years.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.