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Friday 27 April 2018

Leaders of Global Bottled Water Market Facing Stiff Competition from Local Vendors

A recently compiled business and commerce report by Transparency Market Research (TMR) has detected that the prominent players of the global bottled water market are facing stiff competition from localized vendors. This fragmented scenario is a reflection of low entry barriers of the bottled water market, and the shares in the future are expected to remain distributed. Localized players are able to comply with moderate regulatory mandates regarding the quality of both the product and packaging. In addition to that, they are able to eat into the shares via their supply chain.


Acquisition an Effective Strategy for Global Players for Greater Shares

This being said, global players are able to promote themselves as the purest product manufacturers and always have an option of acquiring a local player to strengthen their distribution network. The trick for the major companies operating in the global bottled water market, says the analyst of this report, is to identify country- and city-wide opportunities across various emerging economies and acquire aggressively. Offering products at a price range that matches with local competition and introducing innovative packaging that cannot be matched by technologically shorthanded domestic players are two suggestions that the analyst of this business intelligence report has highlighted. The Coca Cola Company, Nestle Waters, Groupe Danone, PepsiCo Inc, and Mountain Valley Spring Company LLC have been identified as a few major players in the global bottled water market.

Global Bottled Water Market to Breach US$300 Billion Worth by 2024

In terms of volume, there will be an estimated demand of 528.2 billion liters of bottled water by the end of 2024 across the world, which will translate into a revenue of US$307.2 billion. As of 2017, the global bottled water market was worth US$198.5 billion. This represents a CAGR of 6.44% during the forecast period of 2017 to 2024. Among the products, still water bottles is the segment that will continue to dominate until 2024, providing for opportunities worth US$156.0 billion in 2017. The report has also bifurcated the bottled water market in terms of packaging type and distribution channel. Geographically, Asia Pacific has been highlighted as the region with radically increasing lucrativeness, going past North America which provided for the most prominent chunk of demand in 2017.

Mushrooming of SMEs in Emerging Economies Driving Demand

Water is a necessity for humanity and the awareness regarding a substantial consumption of the same is expanding on the back of growing popularity of social media. Bottled water are a convenient way of tagging water along for individuals and the urban populations are adopting it. Mushrooming of small and medium enterprises (SMEs) across emerging economies and global initiatives to provide safe-to-drink water for underdeveloped countries are some of the other factors augmenting the demand in the global bottled water market. On the other hand, the pollution caused by polyethylene terephthalate (PET) is the glaring restraint that is holding the bottled water market back. In addition to government mandates for the preservation of environment, the market for bottled water is also challenged by the substantial energy that is required for the manufacturing processes.

Key Takeaways:

  • There will be a demand for over 409 billion liters of bottled water by 2024
  • Increasing number of local vendors are eating out significant chunk of shares
  • Vastly populated emerging economies in Asia Pacific representing lucrative opportunities


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