|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD760 Million
|
|
CAGR (2023-2028)
|
6.8%
|
|
Fastest Growing Segment
|
Still Bottled Water
|
|
Largest Market
|
North Vietnam
|
Market Overview
Vietnam bottled water market has valued at USD760
million in 2022 and is anticipated to project robust growth in the forecast
period with a CAGR of 6.81% through 2028. The Vietnam bottled water market has
witnessed significant expansion, driven by urbanization, health trends, and
convenience. Local and international brands compete in offering various
packaging sizes and water types to cater to diverse consumer preferences. The
increasing middle class and tourism contribute to sustained demand. Regulatory
standards and environmental concerns about plastic waste pose challenges,
encouraging shifts towards eco-friendly packaging and purification
technologies. As the market evolves, innovative marketing strategies and
distribution networks play pivotal roles in capturing consumer attention and
loyalty.
Key Market Drivers
Health Consciousness
Health consciousness refers to the increasing
awareness and concern that individuals have about their physical well-being and
the impact of their lifestyle choices on their health. In the context of the
bottled water market, health consciousness plays a significant role in driving
consumer preferences and decisions. Consumers are increasingly concerned about
the quality and safety of the water they consume. Bottled water is often
perceived as a safer option compared to tap water, especially in regions with
water quality issues. Health-conscious individuals are wary of waterborne
diseases caused by contaminated water sources. Bottled water provides a
reliable and convenient way to reduce the risk of such diseases. Some bottled
water products are marketed as containing essential minerals or added
nutrients, appealing to health-conscious consumers seeking extra benefits from
their hydration choice.
Increasing Tourism
Tourism plays a significant role in various aspects
of a country's economy and culture. In the context of Vietnam's bottled water
market. The influx of tourists creates a higher demand for bottled water due to
travelers seeking convenient and safe hydration options. Tourists come from
various regions with different water quality standards, often preferring
bottled water as a reliable choice. Travelers may be wary of local tap water
quality and opt for bottled water to avoid potential health risks in an
unfamiliar environment. Bottled water is a portable and accessible option for
tourists exploring new places, allowing them to stay hydrated without
dependence on local water sources. Awareness of cultural norms and
environmental practices, including water usage, can lead tourists to prefer
bottled water. Tourism contributes to the economy, and the demand for bottled
water by tourists supports the growth of the bottled water market. International
tourists can introduce local bottled water brands to a global audience,
impacting brand recognition beyond domestic markets.
Perceived Water Quality
Perceived water quality refers to the subjective
assessment and belief individuals hold regarding the cleanliness, safety, and
purity of the water they consume. Bottled water is often perceived as a safer
option than tap water due to concerns about contaminants or pollutants,
especially in regions with water quality issues. Consumers seeking healthier
choices are more likely to opt for bottled water based on the assumption that
it meets higher quality standards. Bottled water's sealed packaging reinforces
the idea of freshness and uncontaminated water, enhancing its perceived
quality. Brands that communicate transparency in sourcing, purification
processes, and testing can boost consumer confidence in the water's quality. Brands
often emphasize the purity and quality of their water through labeling,
advertising, and endorsements by health experts.
Packaging Diversity
Packaging diversity in the context of the bottled
water market refers to the wide range of packaging options and formats that
brands offer to cater to different consumer preferences and needs. Brands
provide packaging options that suit various occasions and settings, from small
bottles for on-the-go to larger ones for home consumption. Smaller bottles with
ergonomic designs are favored by consumers looking for easy carrying during
activities like sports, travel, or work. Larger bottles are ideal for families
or shared spaces, emphasizing convenience and reducing the need for frequent
refills. Brands offering eco-friendly packaging, such as reusable bottles or
recyclable materials, attract environmentally conscious consumers. Brands
introduce limited-edition packaging, themed bottles, or customizable labels,
appealing to collectors or consumers seeking personalization. Unique and
eye-catching packaging serves as a marketing tool, grabbing consumers'
attention and driving brand recognition. In the Vietnam bottled water market,
packaging diversity is an essential strategy for brands to differentiate themselves,
capture consumer attention, and cater to a diverse range of preferences. Brands
that understand and respond to the varying needs of consumers through
innovative packaging solutions can gain a competitive edge and enhance their
market share.
Download Free Sample Report
Key Market Challenges
Environmental Concerns
Environmental concerns in the bottled water
industry pertain to the negative impacts of plastic waste and other
environmental issues associated with the production, consumption, and disposal
of bottled water. Single-use plastic bottles contribute to plastic pollution,
harming ecosystems, marine life, and waterways. Proper disposal and recycling
infrastructure are often lacking. The disposal of plastic bottles poses challenges
for waste management systems, leading to littering and overflowing landfills. The
production of plastic bottles requires significant amounts of fossil fuels and
water resources, contributing to carbon emissions and water stress. Inadequate
recycling rates for plastic bottles exacerbate the environmental impact, as a
large portion of plastic waste ends up in the environment. The breakdown of
plastic bottles over time results in the release of microplastics into the
environment, with potential ecological and health consequences. The industry is
exploring alternatives like biodegradable materials, compostable packaging, and
refillable containers to mitigate plastic waste.
Counterfeit and Imitation
Counterfeit or imitation bottled water products can
damage the reputation of established brands if consumers mistakenly associate
poor quality with the legitimate product. Imitation products may not meet
safety and quality standards, posing health risks to consumers who believe they
are purchasing genuine bottled water. Counterfeit products can lead to revenue
loss for legitimate brands, as consumers opt for cheaper counterfeit options or
lose trust in the genuine product. Brands investing in product development,
branding, and labeling could face intellectual property infringement issues
when counterfeiters copy their designs. Counterfeit products often lack proper
labeling, safety information, and regulatory compliance, violating industry
standards. Instances of counterfeit bottled water erode consumer confidence in
the market, impacting overall industry growth.
Regulation and Compliance
Regulatory bodies set standards for the quality and
safety of bottled water, including limits for contaminants, minerals, and
microorganisms. Regulations dictate the information that must be included on
labels, such as source identification, expiration dates, nutritional content,
and contact information. Regulations may specify acceptable materials and
designs for packaging, ensuring that bottles are safe for consumers and the
environment. Bottled water producers often require licenses or permits to
operate, ensuring compliance with industry-specific regulations. Regulations
govern the accuracy of advertising claims related to health benefits and
product attributes, preventing misleading information. Regulations cover
production facility cleanliness, sanitation practices, and worker hygiene to
prevent contamination.
Key Market Trends
Sustainability and Eco-Friendly Packaging
Brands are adopting packaging alternatives that
reduce the reliance on single-use plastic bottles, such as using biodegradable
materials, compostable packaging, or recycled plastics. Some companies are
introducing refill stations or programs where consumers can refill their
bottles with purified water, reducing the need for new packaging. Brands are
actively promoting and participating in recycling initiatives to ensure that
their plastic bottles are properly recycled after use. Simplified packaging
designs with less material usage are becoming popular, minimizing the
environmental impact while maintaining product integrity. Brands are exploring
innovative materials like plant-based plastics or glass to create more
sustainable packaging options. Companies are aiming to reduce the carbon
footprint associated with production and transportation by optimizing supply
chains and distribution networks. In the context of the Vietnam bottled water
market, sustainability and eco-friendly packaging are likely to be key drivers
of consumer choice, especially as environmental awareness continues to grow.
Brands that proactively address these concerns by implementing sustainable
packaging practices can not only contribute positively to the environment but
also establish a competitive advantage in a market where consumers value
responsible consumption.
Functional and Enhanced Waters
Functional and enhanced waters can offer a range of
benefits, such as added vitamins, minerals, electrolytes, antioxidants,
probiotics, or natural flavors. Consumers seeking healthier beverage options
are drawn to functional waters that align with their health and wellness goals.
Brands are formulating functional waters to address specific health concerns,
such as immunity support, hydration during exercise, or mental clarity. Consumers
find it convenient to obtain additional nutrients while staying hydrated
through a single beverage. Younger generations are often interested in
innovative and functional products that offer unique experiences and benefits. Enhanced
waters with electrolytes and minerals cater to athletes and fitness enthusiasts
looking for optimal hydration. In the Vietnam bottled water market, functional
and enhanced waters can cater to a diverse consumer base with varying health
and wellness preferences. Brands that offer clear information about the
benefits of their products and focus on high-quality ingredients are likely to
capture the attention of health-conscious consumers. However, it's important
for brands to ensure that any health claims made on packaging or marketing
materials are supported by scientific evidence and comply with regulatory
standards.
Online Retail and E-commerce
Online retail and e-commerce have become
increasingly influential in various industries, including the bottled water
market. This trend is driven by changing consumer behavior, technological
advancements, and the convenience of digital shopping. Online platforms provide
consumers with the convenience of purchasing bottled water from the comfort of
their homes, saving time and effort. E-commerce allows consumers to explore a
broader range of bottled water brands, flavors, and packaging options that may
not be readily available in physical stores. Brands offer subscription
services, delivering bottled water at regular intervals, catering to consumers
who prefer a consistent supply. Online retailers often offer bundle deals and
discounts, encouraging consumers to purchase larger quantities of bottled
water. Consumers can easily compare prices, reviews, and product information
across different brands and retailers before making a purchase. Online
platforms allow consumers to research brands and make informed choices based on
factors like sustainability and ethical practices.
Water Quality and Purity Assurance
Brands adhere to strict quality standards and
regulations to ensure that their bottled water meets or exceeds safety and
purity requirements. Brands provide information about the source of their
water, emphasizing natural springs, purified sources, or advanced filtration
methods. Brands communicate the methods used to purify and treat the water,
such as reverse osmosis, distillation, or UV treatment. Many brands subject
their water to third-party testing to validate its safety and quality,
instilling consumer trust. Transparent supply chains and traceability measures
help ensure that water quality is maintained from source to bottling. Brands
implement batch tracking systems to quickly identify and address any quality
issues that may arise. Brands ensure that packaging is tamper-proof and airtight
to prevent contamination before consumption. In the Vietnam bottled water
market, water quality and purity assurance are critical due to consumer
concerns about tap water safety. Brands that invest in rigorous testing,
transparent communication, and adherence to established standards can build a
strong reputation for providing safe and pure drinking water. This can be a key
factor in gaining consumer loyalty in a market where health-consciousness and
trust are vital considerations.
Segmental Insights
Data Type Insights
With a 22.5% market share
in 2022, the still bottled water segment led the Vietnam bottled water market
and is predicted to continue expanding over the coming years. Consumers seeking healthy
beverage options often prefer still bottled water due to its simplicity and
lack of added sugars or artificial additives. With increasing awareness about
the importance of hydration for overall well-being, still bottled water is
viewed as a convenient and essential choice. Still water provides a clear
medium for consumers who want to experience the natural taste of water without
any flavour enhancements or additives. Still water provides a clear medium for
consumers who want to experience the natural taste of water without any flavor
enhancements or additives.
Packaging Material Type
Insights
Plastic bottled water was
indeed a significant and growing segment in the Vietnam bottled water market. Plastic
bottled water offers convenient on-the-go hydration, making it a popular choice
for busy lifestyles. Plastic bottled water is widely available in various
retail outlets, making it easily accessible to consumers across different
regions. Many consumers prefer the familiar packaging and convenience of
plastic bottles for their daily water intake. Brands offer plastic bottled
water in a range of sizes, catering to different consumption needs and
preferences. Plastic bottled water often features eye-catching labels and
designs that enhance brand visibility and recognition.
Regional Insights
The North Vietnam region has established itself as
the leader in the Vietnam bottled water market with a significant revenue share
of 30% in 2022. This
dominance is expected to continue over the forecast period due to the densely
populated, with major cities like Hanoi and Hai Phong experiencing significant
urbanization. This urban population drives the demand for convenient and
accessible bottled water. The region's economic growth and rising disposable
incomes have led to increased consumer spending, including on bottled water for
daily hydration. North Vietnam is a popular tourist destination, attracting
domestic and international travelers who contribute to the demand for bottled
water.
Recent Developments
- In August 2022, Vikoda,
launched a new alkaline water product with a pH of 9.0 to optimize health
benefits and meet rising consumer demands for natural beverages.
- In February 2020, La
Vie Co., Ltd. has launched natural mineral water in glass bottles and
invested in resources to ensure empty bottles are collected and completely
recycled to minimise the impact on the environment.
Key Market Players
- Suntory PepsiCo
Vietnam Beverage Company Ltd.
- La Vie Vietnam
Ltd.
- Coca-Cola
Beverages Vietnam Ltd.
- Vinh Hao
Mineral Water Joint Stock Company
- Sai Gon
Beverage Co., Ltd (SAPUWA)
- Nam Viet Food
& Beverages Co. Ltd.
- Quang Ninh
Mineral Water JSC
- Tan Quang Minh
Manufacturing and Trading Company Ltd. (BIDRICO)
- Rita Foods
& Drinks Co., Ltd.
- Asia Food &
Beverage Co., Ltd.
|
By Product Type
|
By Stock Keeping Units
|
By Packaging Material
|
By End User
|
By Region
|
|
·
Still Bottled Water
·
Carbonated Bottled Water
|
• Less than 1L
• 1L-2L
• More than 2L
|
• Bottles
• Barrels
• Glasses
|
• Individual
• Commercial
|
• North Vietnam
•
Central Vietnam
• South Vietnam
|
Report Scope:
In this report, the Vietnam Bottled Water Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Vietnam Bottled Water
Market, By Product Type
o Still Bottled Water
o Carbonated Bottled Water
- Vietnam
Bottled Water Market, By
Stock Keeping Units:
o Less than 1L
o 1L-2L
o More than 2L
- Vietnam
Bottled Water Market, By
Packaging Material:
o Bottles
o Barrels
o Glasses
- Vietnam
Bottled Water Market, By
End-User:
o Individual
o Commercial
- Vietnam
Bottled Water Market, By Region:
o North Vietnam
o Central Vietnam
o South Vietnam
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Vietnam Bottled Water Market.
Available Customizations:
Vietnam Bottled Water Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Vietnam Bottled Water Market is an upcoming report
to be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]