mineral water report.
When the item becomes bottled water, it seems that companies that have successfully sold it in Europe and the United States are ready to expand into the developing world.
According to Stephen Kay, this is not to say that Western markets are overheating.
President of American communications-
International Bottled Water Association.
\"The growth of 7%-continues.
\"With a 10% range, analysts expect to continue along this path in the US,\" he said . \".
\"But with the expansion of any business and the increase in return on investment, the development of new markets and the return of shareholders and owners may lead the company to seek opportunities to develop the market.
As a result, well-known companies such as Danone Group and Nestle are turning to the developing world.
Hans Momsen, manager of the European Bottled Water Association, said: \"The global bottled water market is doing a good job (EBWA).
\"Sales in Asia and South America grow by 10-11% per year.
This is a good market.
\"In fact, Nestlé Waters is looking to expand significantly on a traditional basis, according to Jeff Caso, senior vice president of marketing and HOD (
Home and office delivery)Europe.
\"The significant growth opportunities in the bottled water market are particularly from developing regions in the world,\" he said . \".
\"They usually show double
Thus, these regions of the world offer real opportunities for quantitative growth.
Nestle has been looking for development opportunities in these areas.
However, profitability in the short term
Due to the generally low prices, fierce competition, the term is still uncertain.
\"Bottled water is usually cleaner and safer than local tap water in developing countries, which is just a small factor,\" suggested smr Mommsen.
\"Bottled water is the image of a healthy life, it\'s friendly and stylish.
The emerging middle class and its disposable income are very important.
They consume a lot of bottled water.
\"The strategy of multinational companies is to acquire local companies.
\"These big names have been selling their top brands in developed countries for about 20 years,\" Mr Mommsen said . \".
\"They mess up the high-end groups you can see everywhere.
Today, they are looking for local brands with potential.
They are looking for companies that are diligent and have the potential to increase supply and processing plants that do not require much improvement.
They need economies of scale.
They will use it as an intermediate market.
They will include European brands in the category of luxury goods.
\"Home and office delivery is an important sub-
The bottled water giant\'s industry, Danone claims-
After the acquisition of Canada in 1994, through a series of acquisitions, occupy a position in the global market.
This ensures its strong position in the water markets in Mexico and Argentina, for example, Danoneclaims ranked second and first in the HOD market.
This is important given the size of the Latin American bottled water market.
A 2002 ATGI Mexico study found that 59% of respondents said they had purchased natural or tasteless bottled water over the past seven days.
Annual sales are $6.
56 billion, making Mexico the second largest product market in the world after the United States. Just-drinks.
However, com will look at the rest of the world, where sales potential may not be obvious, but demand for bottled water may grow significantly in the near future.
Eastern Europe, Russia and Eastern Europe have formed intriguing market comparisons with developing countries in Asia and South America.
In some respects, markets in Eastern Europe can be compared to those in the world\'s poor areas.
For example, according to the European Bottled Water Association, the growth rate is similar and the annual growth rate of production and sales is approximately.
\"Some countries, such as Poland, the Czech Republic and Hungary, are very strong,\" Ebwa\'s smr Mommsen said . \".
\"Slovenia did a good job too.
Nestlé and other large companies are also stationed, but local entrepreneurs are also investing.
There is a middle class that has the same aspirations as the middle class.
However, a London
Analysts at the company, who declined to be named, said the bottled water companies should be wary of investing in the Czech Republic.
He said: \"There is a little attitude problem over there . \"
\"Some people have a very bad attitude towards business and dig away each other\'s customers.
They did not think strategically.
They are cutting prices and it won\'t work.
Soon the company will close down.
If I work for a qualified running water company, I will worry about scorching my fingers in the Czech Republic.
So is Slovakia.
It\'s basically the fact that they\'re trying to go too fast, too fast, and they don\'t seem to want any foreigners.
The conditions for bottled water companies are not very good.
\"The journey in Russia seems to be equally bumpy, but more so because of logistics problems such as unstructured distribution channels.
But for those who are ready, it is good to have a good profit.
Big brands have moved quickly again to build a new company that bought the country\'s two largest bottled water companies.
According to the Department of Hydrology at the University of St. Petersburg, Russia has \"almost all types of groundwater, from light mineral water suitable for drinking to very high mineral water.
\"In general, as a spa and health resort, about 300 mineral water sources have been developed ---
Some of these dates can be traced back to the 19 th century, when the City elite in Moscow or St. Petersburg will \"put on airs\" in the South gaogasuo mountains \".
Today, although the area is very close to Chechnya, more than 150 of hot springs produce bottled mineral water ---
Just 150 km from Kislovodsk, Nazan headquarters, Nazan is a popular state
Mineral water enterprises owned by the Soviet Union-
Security issues were raised.
According to EBWA, the bottled water market in Russia has grown by more than 20% annually.
\"The market is growing like hell,\" Mr Mommsen said . \" He is setting up a Bottled Water Association for the country.
\"It\'s very powerful in Moscow, St. Petersburg and several other cities.
These are hidden gems from markets that don\'t have much exposure to bottled water.
Everything was ready there.
You don\'t need a negative strategy, and you don\'t need to grab any customers from your competitors because there\'s a lot to get around.
Nestlé has subsidiaries in Russia, Hungary and Poland, each with local brands, Nestlé brands and international brands such as Perrier, Vittel and S. Pellegrino.
Nestle brand has grown by 9 in Hungary. 8%/2003 2002; 6.
Poland is 4% and 17. 9% in Russia.
\"The per capita consumption level is relatively low,
\"Digital growth rates, Eastern Europe offers a very attractive potential market,\" says Mr Canso of Nestle . \".
But market analyst AC Neilsen warned that while the size and strength of the Russian market is growing, the promotion andprice runs through the Aqua mineralbrands of BonAqua Coca-Cola and Pepsi are challenging to build something like Narzan and its georgiancounter part, borromi.
The decision of the European Bank for Reconstruction and Development reflects interest in the Russian market (EBRD)
As part of $12, the acquisition of a minority stake in Nazan.
25 million consolidation of loans and equity investments.
The EBRD\'s financing package will help Narzan expand its bottling capacity, develop new products and provide it with Labor capital.
The company reported a turnover of $23 million in 2003, the first year of the company\'s reporting under international accounting standards.
Narzan produces 70 million liters of water per year, 25 million more than in the Soviet era.
\"Narzan is a traditional Russian mineral water, and we think it has a lot of potential to take up an increasing share of the emerging Russian beverage market,\" the team of agricultural enterprises of EBRD
Mr Mommsen, however, suggested caution.
\"The market is difficult to open because of the language,\" he said . \".
\"You need a good local manager, logistics is important.
Roads, infrastructure and winter are the biggest challenges.
You have to remember that in Russia the water does freeze and it will get cold.
\"South Africa is another important emerging market, with sales in the natural bottled water market of $0. 106 billion, or 100 million liters, in 2003. Representing nine times the theyears 1993 in 2003, BMI Foodpak, a consumer goods market research firm.
However, one of the problems facing the industry at the moment seems to be the lack of rating systems or national regulations for managing water quality.
Mark Lijie, sales and marketing director of Vie De Vie, a South African bottled water producer, said there was no difference in quality.
\"We need a system to rate the water according to the water source, the way it is treated and the way it is bottled.
With these measures, we can expect more flies to appear in the evening and back door operators to enter the market, he told reporters: \"Since the market has not yet developed, consumers will make a difference in quality, but pay more attention to price. \"drinks. com. Indeed,--
Like the rest of the world. -
Recently, Coca-Cola was attacked after it was found in South Africa that the company\'s bottled water brand bonaqua was treated with tap water.
However, Casper Durandt of Coca-Cola
The cola \'stechnical manager in the southern African region insists that the purification process is still an expensive and effective process, especially in low rainfall areas such as South Africa.
\"The water was stripped down through more than one
A barrier filtration system that makes it pure.
\"The result is that, unlike mineral water that changes with rainfall, the water quality is consistent,\" he said . \".
Nevertheless, Salmen Khen, general manager and national director of the South African natural Bottled Water Association (SANBWA)
He said that for the benefit of the consumer, a distinction should be made between mineral water and treated water, which should be noted on the bottle.
SANBWA has developed a range of guidelines and standards that must be followed by 19 members.
The source of its licensed aquatic products must be certified by a qualified water physicist and must not contain e.
E. coli, E. coli and pathogenic bacteria.
South Africa\'s bottled water industry is forming two ideas in developing export markets.
First, in the context of the continued strengthening of the South African rand and the decline in South Africa\'s export competition, the focus was on developing the domestic market before the expansion.
Mr. Lilje of Eau De Vie said: \"In the near future, we intend to become stronger in the domestic market.
However, in theSADC (
Southern African Development Community)
We did see an opportunity to appear in Congo (Kim ).
(Democratic Republic of the Congo)
We will seek Mozambique through agents based in the country.
\"In contrast, however, the new owner of Karoo mineral water ---
And Christopher Miller. -
It has been announced that the company will start exporting products to Europe by the end of 4 years and intends to increase exports to 10% of the company\'s turnover, while taking its local market share from 1.
Between 2% and 5% in the next three years.
Meanwhile, companies in Namibia and Botswana are refilling South African Minerals.
Their target market is local tourism trade.
Bottling companies have their own brands, such as Etosha springs in Namibia and Kalahari mineral water in Botswana, which are related products in South Africa.
At the same time, some local hotels need to be renovated.
Label these products with their own brands. ASIA-
These overall positive developments in Eastern Europe and southern Africa in the Pacific, however, are dwarfed by increased demand in Asia for the global bottled water industry (
It is the fastest growing consumer area.
Of course, there are still millions of people in East and South Asia and the Pacific, who live below the poverty line, who cannot and may never be able to buy clean bottled water in supermarkets or corner shops, but those who can afford it are obviously more frequent.
According to the 2004 Global Bottled Water report produced by byUK
Zenith International, a beverage consultancy based in the Asian/Australian bottled water market, was 11 years ahead of schedule.
2%, to 36 billion liters, while the annual compound growth rate of sales in the region is 1998-
Issue 2003 is Issue 18. 1%.
According to the report, per capita consumption has more than doubled in the past five years, pushing regional per capita consumption to 10.
3 litres in 2003.
Prior to that, consumption in the region surpassed North America in 1999 and Latin America in 2001.
Zenith International\'s report also pointed out that although China was the largest bottled water market in the region in 2003,
The third regional share, the country with the highest consumption is actually Thailand, which is 12-month period.
The United States and Mexico remain the two largest single markets in 2003, but it is worth noting that China and Indonesia seem likely to downgrade Italy (
Mainly through its successful tourism industry, has always been regarded as a big consumer)
Return to fifth place by 2008.
Zenith International\'s report also said that the global market will continue to grow by 9.
2% to 155. 4 billion liters-
Same growth rate as 2002-
The agency predicts that consumption statistics in Asia/Australia will surpass Western Europe in 2007 over the next five years.
Demand from China, Indonesia, India and South Korea will lead this growth.
According to the vice president
President of American communications-
International Association of bottled water (IBWA)
Stephen Kay, a bottled water company sold in Europe and the United States, has developing world countries including Asia on their radar screens.
Analysts expect growth in the US and the global economy to continue.
\"As with any business, expanding and increasing returns on investment, developing new markets and rewarding shareholders and owners may lead the company to seek opportunities for developing markets,\" Kai said . \".
Larger companies, such as Danone Group and Nestle, are nurturing their attention to the huge potential markets in the developing world.
European Association of bottled water (EBWA)
Hans Mommsen also believes that the Asian bottled water market looks bullish, with sales growing 10 to 11% a year.
\"This is a good market,\" he said . \"
The key, he said, is that the company has been preparing for the acquisition. off.
\"Big companies have been selling top brands in developing countries for about 20 years,\" he stressed . \"
\"Their goal is
Market groups you can see everywhere.
Today, they are looking for local brands with potential.
They are looking for companies that are diligent and have the potential to increase their supply and processing plants that do not require much improvement.
They need a good economies of scale.
They will use it as a market.
\"They will put European brands in the category of luxury goods,\" he said . \".
One factor driving this growth is, of course, in the poorer countries of Asia --
Health is the Pacific region.
A growing number of health programmes in the Southeast Asia region highlight the importance of drinking safe water and using it for food preparation and brushing teeth, as well as the importance of being a healthy substitute for sugar --
Rich soft drinks, some of which are considered to be the cause of unhealthy lifestyles.
Now, there is no bottled water supply in the most remote and poorest rural areas of the region.
However, even in some eastern easy-to-reach mountain towns in Vietnam and Laos, visitors will take out a fresh bottle of chilled mineral water directly from the refrigerator.
Zenith International\'s 2004 report says the growth in bottled water consumption indicates that health is becoming an increasingly important factor in consumers\' choice of soft drinks.
\"Especially the rising obesity problem is a major challenge for the soft drink industry.
According to the World Health Organization, there are currently more than obese people in the world (WHO)
\"Eating a lot of sugar-rich soft drinks is accused of causing the problem,\" the report said . \".
\"Health issues have affected the dynamics of the beverage industry, which may become more visible over time.
Bottled water is still the biggest beneficiary in this climate.
A 2002 report from AC Nielsen, a global industry analyst, entitled \"global hot spots,\" found that \"in addition to new products entering the category, consumers\' attention to local water quality is one of the reasons for \"static (bottled water)growth\".
Combined with EBWA\'s marketing praise for bottled water, the product is \"young and stylish\" and its popularity seems destined to continue for some time to come.
What is more difficult to understand is the extent and type of bottled water production in Southeast Asian countries, as statistics are still considered unreliable in a young industry here.
Rather than relying heavily on natural mineral water or springs, some markets tend to use various methods such as reverse osmosis and distillation to obtain and purify drinking water.
Then bottle the water for sale.
The proportion of natural minerals/spring water is 60: 40 respectively throughout Asia, and the following countries show strong preference for purified water: Korea, Thailand, Malaysia, Vietnam, Philippines and India (
Each of these markets has less than 10% market share in natural water.
Pure water is still the bottled water people choose in China, but people are clearly turning to mineral water.
In addition, China has a country in East and Southeast Asia that currently dominates business and trade, which is clearly reflected in the bottled water industry.
As China gets rid of communism and puts on a strange robe of the world\'s latest mass market economy, China is undergoing earth-shaking changes and is having a significant impact on industry in the region and around the world.
It has the largest bottled water market in 2003.
Share of the third region (
Source: Global bottled water, Zenith International 2004).
A year ago, the company\'s 2003 Asian/Middle East bottled water report pointed out that China was two of the top five bottled water companies in Asia in 2002: Wahaha (Danone)and Robust(Danone).
Other leading brands are Aqua Group (Danone)
Boon Rawd and Ades in Indonesia, Thailand (Coca-Cola)
In Indonesia, the top five companies claim
In the fifth regional sales share in 2002, the top 10 companies sold more than one quarter in 2002 (
Excluding Australia and New Zealand).
Given that China is the most populous country in the world, with a total population of about 1 person, China\'s key position and potential are understandable. 3 billion.
However, China also has a large amount of water for the industry to develop.
Although there are no official or estimated figures on natural water resources, according to the Ministry of Water Resources, the total amount of groundwater resources can reach 828.
8 billion compartment.
Before reaching any bottled water resource number, a large percentage of the amount used to produce beer and food must be subtracted, as well as non-
There are also a large number of commercial sources and local use in rural areas.
Anyway, the Chinese representative of Canadean, an analyst in the bottled water industry, said that there is still a lot of room for expansion in China\'s current production and consumption levels, Chen Philip. He toldjust-drinks.
Com: \"It is estimated to be around 6 in 2004.
Sales of bottled water in China will reach 12 million liters, and exports will only rise or so, which is insignificant \".
However, some caution should be injected here, because although it seems small for industry experts, accurate figures on the industry across the country are still difficult to obtain.
Mr. Chen explained: \"It is difficult to measure the total size of the bottled water market, as anyone with production capacity can enter the category at a low investment cost.
\"There are a large number of soft drink companies in China that produce packaged water of some capacity.
The real problem with getting accurate figures is that there are thousands of other small seasonal beverage manufacturers that produce in lower cities and towns, and the production of these companies is not measured, he added: \"And it doesn\'t depend on the number of people they hire. \".
Also, while it is clear that bottled water has become part of the culture of the more populous metropolitan region, growth is slowing due to fierce competition from commodities or \"Cars, this fact casts a shadow on the situation (water cooler)
Water, on average, is cheaper than bottled water.
\"For example,\" Mr. Chen explained, \"the level of a PET bottle of 500 ml yuan will cost 1 yuan (US 12)
19 liters of carboywater may cost 8 yuan. US 96)to 10 (US$1. 20)in most areas.
More and more homes, offices, shops, and even airports and train stations now have water dispensers, which are cheaper than bottled water.
\"Mr. Chen also added that while water dispensers are mainly used in offices in most markets around the world, this is common in China, in retail stores in major cities.
In addition, the packaging water with smaller demand is currently suppressed a little, because the distance from the production source to the consumption point is very large, which makes the distribution of packaging water in a long distance due to the high cost.
Looking at the classification of packaged water sold in China, he added that a large part is tap water or distilled water.
\"In 2004, the proportion of mineral water to distilled water was 32% to 68%.
By contrast, this figure was 25% to 75% in 1999, so China\'s attitude towards mineral water has changed significantly . \"
On the plus side for large exporters in China, Mr. Chen pointed out that \"the overall price of water for packaging is generally low and the market is attracting more imports from overseas niche brands \".
There are signs that Chinese mineral water producers are beginning to realize the marketing opportunities brought about by the source of the product.
\"In Hainan, south China, there is a company called coconut palm, which attaches great importance to water from local volcanoes,\" he said . \".
GaryRoethenbaugh, research and development director at Zenith International, said that in general, the price of bottled water has changed dramatically in markets such as China.
\"One overriding strategy adopted by most bottled water operators in China is ---
Small package and water cooler--
\"This is a radical pricing,\" he said . \"
\"New entrants in the market have surged over the past few years.
These companies tend to gain market share through very low price points, which in turn makes it difficult to maintain business in the medium and long term.
In addition, in the increasingly popular wave of bottled water, new entrants are often inexperienced entrepreneurs.
\"Unfortunately,\" added Mr roethenbaough, \"the highly competitive market conditions make it difficult to continue operating once a certain level of marketing investment runs out in order to obtain bottled water
\"The net effect of radical prices --
The discount environment is an erosion of brand loyalty, and the national share of major brands is weakened by the impact of local New bottled water players.
Understandably, consumers have begun to expect water to be a low-cost product due to price discounts.
\"So what is the future of the world\'s most dynamic new market economy?
Mr. Chen of Canada predicts that the bottled water market will continue to show good growth in the next three to five years, with an average annual growth of 10%.
\"However, as consumption growth in major cities approached its peak, he said:\" Companies are focusing their sales and marketing efforts on smaller first-tier cities and towns, it is expected that due to the low disposable income of those living there, it will penetrate further into these
Local producers are unlikely to try to increase sales through exports, he added, as they face a tough battle --
For example, established Western rivals such as Evian and Perrier.
\"Therefore, I can\'t imagine that in the near future, players will make any serious efforts to export their products overseas and market them,\" Mr. Chen said . \".
On both sides of the Taiwan Strait, bottled water has also become a symbol of Taiwan\'s economy.
According to beverage analyst Datamonitor asiapaci, the bottled water market in Taiwan has tripled.
In 2%, the market value reached $90 million.
The market size of Taiwan\'s bottled water industry has increased by 0.
In the same period, 6% liters reached 0. 16 billion liters.
Asia Pacific Data monitoring also reported that Taiwan accounted for 1.
7% of the Asia Pacific bottled water market in 2003.
Indonesia and Indonesia also play an important role in Southeast Asia.
The Secretariat of the Asian Bottled Water Association is located in the capital Jakarta.
According to coca
Coca-Cola regional headquarters in Sydney, Australia
The beverage giant\'s South Pacific headquarters covers Indonesia, but the rest of Southeast Asia is based in Hong Kong)
The total demand for bottled water in Indonesia is 5.
There are 4 billion liters per year.
\"The biggest brand in Indonesia is Danone\'s Aqua.
TheAdes brand under Coca-Cola
Jeff Walsh of Coca-Cola said: \"Coca-Cola is the second largest brand. Cola (
South Pacific and South Korea)
Noting that the Aqua brand in Indonesia sells more than any other brand in the world ,(
Danone says 3 billion liters a year. .
Noting that the bottled water industry in Indonesia is \"highly competitive\", Mr. Walsh said: \"Because the purchasing power of most consumers is low, affordability is critical to this market.
Danone is the leader in the Indonesian market with a market share of over 50%.
Ades is produced in seven factories and the largest is located in inCibinong, West Java.
Bottled water is definitely part of the culture of urban areas, where the water quality is particularly poor.
\"As for the future of the world\'s most populous Muslim nation, Walsh believes there is room for growth.
\"At present, the per capita consumption in Indonesia is still low (25. 8 litres).
As a result, there are great opportunities for further development of the category.
\"This category has grown strongly in recent years, and although it is now the seventh largest water market in the world, it is still growing,\" he said . \".
The future of the bottled water industry in Southeast Asia and East Asia is hard to predict.
To some extent, it looks very prosperous because the market here looks bullish and the life trend is moving in the direction of increasing mineral water consumption.
Zenith said that the Asian/Australian bottled water market is expected to reach 55 billion liters by 2008, of course, most of which will be led by countries with a large population ---
China, Indonesia, in particular. -
And penetration of bottled water.
Has always relied on the public (bulk)
Some of the water on the market, which means people can choose between home or commuting or drinking mineral water in the gym.
Despite the encouraging growth in bottled water sales, the threat of price depreciation has always existed, as more expensive foreign imports are sold in many parts of Southeast Asia along with low-cost local production.
A key factor in the growth or other aspects of bottled water sales in Southeast Asia may be niche markets where traditional economic engines in the region and major developed countries Japan have also gained momentum of growth.
In fact, Gary roethenbaugh of Zenith argues that Japan is the best Asian example of a new niche bottled water market.
\"Through a full embrace of functional drinks and innovative beverage products, Japan has been at the forefront of creating a niche market,\" he said . \".
The concept of \'near water\' took off in Japan in the 1990 s.
Nearby water-based Ben is water bottled with a small amount of juice (
Usually less than 5%)
Sugar/sweeteners and various functional ingredients.
These products can be sold in various consumer occasions. . . .
From increasing energy to increasing sexual desire.
\"Recently, Japanese consumers are increasingly willing to pay high prices for a diluted bottle of deep Hawaiian water, which costs up to $33 per bottle.
\"This form of bottled seawater is being sold as a mineral-rich dietary supplement that helps with weight loss, stress control and digestion,\" said Mr Roethenbaugh . \".
\"In addition to Japan, many other Asian markets, including China and Malaysia, have accepted\" functional water \".
AC Nielsen\'s 2002 report, which responds to these points, states that \"new innovations in the water category drive growth, including enhanced water,\" sport \"water, and flavor --enhancedwater.
In any case, due to the obvious potential demand in the bottled water industry, companies must pay close attention to government trade and business policies in countries such as China and Indonesia (
This will have an impact on various acquisitions and market strategies in the region.