Understanding China's bottled water industry
Today we come to understand the first category of beverages-bottled water
1. Industry overview
Two-thirds of the human body is composed of water, of which more than 70% of the brain, muscle, blood and other tissues are water. According to the European Food Safety Agency's recommendations, men should consume at least 2L of water per day and women should consume at least 1.6L of water per day. The structure of the human body determines the rigidity demand for water. Among other types of soft drinks and tap water, bottled water has the characteristics of health, nature, economy, and convenience .
Bottled water is the heat packaged in the bottle. After the implementation of the new national standard, there are only three names for bottled water in the Chinese market-natural mineral water, which can be dissolved in pure water and others.
2, the status quo of the industry
According to research data, in 2017, China's bottled water sales exceeded 100 million tons, sales revenue exceeded 150 billion yuan, and net profit exceeded 16 billion yuan. However, the per capita consumption of bottled water in China in 2016 was only 64.2 liters per person, less than half of the world's total.
From a global perspective, the global bottled water reduction in 2017 reached 418 billion liters, an increase of 92% over 2007, and the content of all other soft drinks was 438 billion liters. According to the forecast of a global food and beverage industry consulting company, global bottled water consumption in 2018 will exceed the sum of other soft drinks.
3. Industry structure
There are many brands of bottled water in China, including purified water, natural spring water, mineral water and other products. The price ranges from one yuan to more than ten yuan.
4, the industry chain
The starting point of the bottled water industry chain is raw materials, production and processing, channels and logistics from top to bottom.
The raw materials include raw water, filters, softeners, and packaging bottle raw materials such as PET, PVC and PE resin. The production and processing include the production of purified water, mineral water, filtration, disinfection, secondary processing, blow molding and stretching of packaging bottles, and filling and other processing processes. The downstream of the industry chain is mainly composed of offline and online sales channels. At this stage, the main sales channels are still convenience stores and supermarkets.
The cost of bottled water raw materials is mainly packaging materials, accounting for 95%, of which PET raw materials account for more than 60%, and retail prices over 8 become circulation expenses.
5, the future of the industry
Driven by the triple factors of rising health demands, income growth and population aging, and comparing the development experience of the United States and Japan, the growth of the internal bottled water industry will come from the substitution of tap water, carbonated soft drinks and other beverages.
Natural mineral water is the second round of consumption upgrade
China's bottled water industry has experienced two rounds of consumption upgrades. In the future, China has the opportunity to usher in the second round of consumption upgrades, namely the transformation from pure water to natural mineral water.
In mature markets, natural mineral water accounts for a high proportion of bottled water (80% in Japan, 98% in Germany, 100% in Italy, and 93% in Spain). At present, bottled natural mineral water in China accounts for a relatively low proportion, and consumption upgrades will drive the development of bottled natural mineral water.
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