Zenith Global East Europe Country Section Water Dispense Report

Zenith Global Report

[Country] Water Dispense Report A comprehensive analysis of the water dispense markets.

2019

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Contents Section 1. Introduction and scope 2. Water dispense market overview 3. Bottled water dispense analysis, insights and opportunities 4. Mains fed point of use water dispense analysis, insights and opportunities 5. Integrated tap system analysis, insights and opportunities

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Introduction and Scope

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Introduction and Scope Introduction

Scope

Zenith Global has actively reported on the water dispense market for over twenty years, providing unparalleled insights into the market’s dynamics and evolution. To reflect the evolution of water dispense, Zenith has revised the 2019 report, with specific coverage on mains fed under the sink/counter integrated tap systems which dispense hot, cold, boiling and sparkling filtered/purified water. Mains fed freestanding/countertop point of use units as well as bottle fed dispense units continue to be reported.

Zenith Global has also increased focus on market insights and opportunities with vertical specific commentary and recent innovation reporting.

Commentary

In producing our reports, we aim to contact every significant company active in the appropriate sector and to provide as complete a picture as possible at a price accessible to any business with a serious commercial interest. This 2019 water dispense report contains text, charts and tables to provide analysis of recent market developments and innovations. We are particularly grateful for the help we have received from these companies in compiling this report. Where direct company figures are unavailable, best estimates have been provided.

This, Zenith Global’s 25th report represents exceptional coverage of the water dispense market and we hope that you find it useful in your business planning. As our research is updated on a regular basis, we always welcome any comments or suggestions about possible improvements.

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Definitions Water dispense: Water dispense units where the primary function is the dispense of filtered and purified water, comprising bottled fed dispense units, mains fed freestanding/countertop point of use units and under the sink/counter integrated tap systems dispensing as defined below.

Bottled water dispense (BWD) units: A unit that dispenses bottled purified, spring or mineral water. The unit can be installed under a rental/service agreement or purchased outright by the customer. Water bottles and pouches are delivered direct to the customer by a distributor. and empty bottles taken away. New bottles and pouches are either placed underneath the unit or inverted and placed on top of the machine. For top fed coolers, a feed tube spike from the machine penetrates the watertight cap in the bottle and opens the valve within the cap, thereby allowing water to flow into the machine or bottle where just a pump is used. The same process is used with bottom fed water coolers with a pump to transfer the water to the point of dispense. Water can be is dispensed either hot, cold or ambient from both top and bottom fed water dispensers. Disposable cups may be provided and are located in a tube on the front or side. Machines are freestanding or table-top and are suitable for larger bottle/pouch formats which are bigger than 10 litres and are therefore larger than those distributed in packaged formats through retail outlets.

Mains fed dispense units: Mains fed filtered point of use (POU) and mains fed under the sink/counter integrated tap systems (ITS) combined as a total as defined below.

Mains fed freestanding/countertop point of use units (POU) dispensing filtered and purified water: A water dispense device that is plumbed into a mains fed water supply, improving the quality of water via filtration or purification methods. Such machines have drip trays and some have drainage systems. The water can be dispensed cold, ambient, sparkling or hot and available as freestanding or table-top units. Typical methods include ultra violet (UV) and carbon filter however reverse osmosis units are also available.

Under the sink/under the counter mains fed integrated tap systems (ITS) with functionality dispensing filtered and purified water: A water system that filters/purifies mains water and directs the water to the tap. These systems may utilise carbon filtration, combined/staged filtration or reverse osmosis technology.to purify or filter the water. These units can provide ambient, chilled, hot or sparkling water. The units are placed either under the sink or under the counter and are referred to as ‘under counter’ or ‘under sink’ systems.

Hybrid mains fed point of use (HPOU) dispense unit: beverage, soda, juice dispense units which can dispense water but whose primary purpose is not water.

Water boilers: whose primary function is to boil water as a source of hot water for making hot drinks such as tea and coffee.

Vending machines: an automated machine that provides ready to drink hot and cold beverages.

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Verticals Workplace:

Public and Private sector offices and workplaces including municipal, government, factories, armed forces, police, fire, prisons.

HoReCa:

Hotels, Restaurants and Catering including bars, pubs, nightclubs. foodservice, cafĂŠs.

Healthcare:

Public and Private Sector medical centres, hospitals, care homes, nursing homes.

Education:

Public and Private sector schools, sixth form colleges, universities, nurseries.

Retail:

Shops, hairdressers, showrooms.

Transport Hubs:Airports, transport hubs.

Domestic:

Residential homes.

Leisure / Gyms: Leisure centres, gyms, tennis and other sports centres, activity centres.

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Water dispense market overview

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[Country] Market overview – Water dispense market evolution •

Commentary

Dispense market evolution, 2014-2018 450,000

110

400,000

installed units

300,000

100 250,000 200,000 95 150,000 100,000

90

50,000 0

85 2014

2015

2016

BWD units Dispensers/pumps Units Total revenue (€ mln)

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2017

2018

POU units ITS units

million EUR

105

350,000

[Country] Market overview - Water dispense market evolution 2014

Bottled Water Dispense (BWD) Units % growth Units per '000 people Million litres % growth Point Of Use (POU) Units % growth Units per '000 people Integrated Tap Systems (ITS) Units % growth Units per '000 people Total Units % growth POU % share BWD % share ITS % share 10

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2015

2016

2017

2018 14-18 % CAGR

[Country] Market overview - Water dispense revenue analysis •

Commentary

Water dispense revenue, 2014-18 120

million EUR

100

80

60

40

20

0 2014 2015 2016 BWD revenue (€ mln) ITS revenue

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2017 2018 POU revenue (€ mln) Total revenue (€ mln)

[Country] Market overview - Price structure and revenue indicators Bottled water

2017

2018

Price structure and revenue indicators

Average monthly rental (€)

•

Average bottle price (€)

Price structure and revenue indicators

Total revenue (€)

•

Commentary

Commentary

- revenue from rented units

Price structure and revenue indicators - revenue from sold units

• Mains fed point of use

2017

2018

2017

2018

Average monthly rental (€) Average sales price per unit (€) Total revenue (€) - revenue from rented units - revenue from sold units Integrated tap system Average monthly rental (€) Average sales price per unit (€) Total revenue (€)

- revenue from rented units - revenue from sold units 12

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Commentary

[Country] Market overview - Units per capita Country – Units per capita 2018 Dispense type Bottled Water Dispense Point of Use Integrated Tap Systems •

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Commentary

Total Units

Units per ‘000 people

[Country] Market overview - Mode of commercialisation Water dispense type

Bottled water dispense

Point of use

Integrated tap systems

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Mode of commercialisation

Commentary

[Country] Innovation and disruption Industry innovation

Key acquisitions

•

•

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Commentary

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Commentary

[Country] Innovation and disruption Examples of recent innovations include: •

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Examples

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[Country] Market overview - Water dispense market forecast 2018 Bottled Water Dispense (BWD) Units % growth Units per '000 people Million litres % growth Point Of Use (POU) Units % growth Units per '000 people Integrated Tap System (ITS) Units

% growth Units per '000 people Total Units

% growth POU % share

BWD % share UTS % Š share 17 Zenith Global Ltd 2019

2019f

2020f

2021f

2022f

2023f

18-23f CAGR

18-23f %

[Country] Market overview - Future water consumption trends •

Commentary

Overall water consumption, % of million litres 2018

3%

97%

Small pack

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BWD

[Country] Market overview - Water dispense PESTLE analysis

P

E

S

T

L

E

Political

Economic

Social

Technological

Legal

Environmental

.

Commentary

Opportunities •

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Commentary

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Bottled water dispense analysis, insights and opportunities

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[Country] Bottled water dispense – Volume market analysis Bottled water dispense units, 2014-18 160 120

120

140

150

60.0

60.0

100

100 80 60 40

50.0

50.0 40.0

40.0 30.0

30.0 20.0 10.0

0 2014

2015

Market drivers and dynamics

21

70.0

70.0

20

•

80.0

Million litres

BWD installed units

140

130

Bottled water dispense volume, 2014-18

Commentary

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2016

2017

2018

0.0 2014

2015

2016

2017

2018

[Country] Bottled water dispense - Units installed by company Machines in December Company A Company B

Total market

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2014

2015

2016

2017

2018

% share 2017

% share 2018

% 18-17

[Country] Bottled water dispense - Volume in million litres by company Machines in December

Company A Company B

Total market

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2014

2015

2016

2017

2018

% share 2017

% share 2018

% 18-17

[Country] Bottled water dispense - Market structure Throughput Litres per dispense unit 18.9l bottles per dispense unit per month

Throughput •

Commentary

Cancellations •

Commentary

Contract lengths •

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Commentary

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2017

2018

Cancellations Quit rate %

2017

2018

[Country] Bottled water dispense - Market analysis Features and benefits

•

BWD features and benefits %, 2018

25%

25%

Commentary

Chilled Chilled-hot

Chilled-hot-boiling 25%

25%

Other

BWD features and benefits %, 2018

30%

35%

Still

Machine types •

Sparkling

Commentary

Still-sparkling 35%

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[Country] Bottled water dispense - Market analysis Verticals •

POU verticals %, 2018

Commentary

2% 1% 20% 0% 3%2%

Workplace

HoReCa Healthcare

19%

Education Retail Transport Hubs 71%

Domestic Leisure / Gyms Others

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[Country] Bottled water dispense - Analysis of leading verticals

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Vertical 1

Vertical 2

Vertical 3

Key features and benefits

Key features and benefits

Key features and benefits

•

•

•

Commentary

Commentary

Commentary

Specific drivers

Specific drivers

Specific drivers

•

•

•

Commentary

Commentary

Commentary

Key players

Key players

Key players

•

•

•

Commentary

Commentary

Commentary

Overall opportunity

Overall opportunity

Overall opportunity

•

•

•

Commentary

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Commentary

Commentary

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Mains fed point of use water dispense analysis, insights and opportunities

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[Country] Mains fed point of use water dispense - Volume market analysis POU units, 2014-18 160 BWD installed units

140 120

120

130

140

150

BWD to POU conversions

100

100

2017

80 60

Replacement rate %

40 20

Number of units

0 2014

2015

Market drivers and dynamics •

Commentary

Conversion •

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New POU

Units added

Commentary

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2016

2017

2018

2018

2017

2018

[Country] Mains fed point of use water dispense - Units installed by distributor Machines in December

Total market

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2014

2015

2016

2017

2018

% share 2017

% share 2018

% 18-17

[Country] Mains fed point of use water dispense - Market analysis Features and benefits

POU features and benefits %, 2018

Commentary

32 %

Chilled Chilled-hot

59%

Chilled-hot-boiling 9%

Machine types

Other

POU features and benefits %, 2018

Commentary

41%

Still Sparkling

59%

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Still-sparkling

[Country] Mains fed point of use water dispense - Market analysis Verticals •

POU verticals %, 2018

Commentary 5% 1% 8%

Workplace

5%

HoReCa Healthcare

4%

Education

50%

5%

Retail Transport Hubs Domestic

17% 5%

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Leisure / Gyms Others

[Country] Mains fed point of use water dispense - Analysis of leading verticals

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Vertical 1

Vertical 2

Vertical 3

Key features and benefits

Key features and benefits

Key features and benefits

•

•

•

Commentary

Commentary

Commentary

Specific drivers

Specific drivers

Specific drivers

•

•

•

Commentary

Commentary

Commentary

Key players

Key players

Key players

•

•

•

Commentary

Commentary

Commentary

Overall opportunity

Overall opportunity

Overall opportunity

•

•

•

Commentary

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Commentary

Commentary

5

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Integrated tap systems analysis, insights and opportunities

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[Country] Integrated tap systems - Volume market analysis Integrated Tap System units, 2014-18 17,000 15,550

16,500 15,450 ITS units

16,000 15,350 15,500

15,250 15,000

15,000 14,500 14,000 0

0

Market drivers and dynamics •

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Commentary

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0

0

0

[Country] Integrated tap systems - Units installed by company Machines in December

Total market

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2016

2017

2018

% share 2017

% share 2018

% 18-17

[Country] Integrated tap systems - Market analysis ITS features and benefits%, 2018 Features and benefits Commentary

20%

30%

Chilled Chilled-hot Chilled-hot-boiling 30%

Other

20%

Machine types Commentary

ITS features and benefits%, 2018

40%

Still Sparkling 60%

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Still-sparkling

[Country] Integrated tap systems - Market analysis Verticals •

ITS verticals %, 2018

Commentary

Workplace

13%

HoReCa Healthcare 15% 50%

Education Retail Transport Hubs Domestic

22%

Leisure / Gyms Others

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[Country] Integrated tap systems - Analysis of leading verticals

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Vertical 1

Vertical 2

Vertical 3

Key features and benefits

Key features and benefits

Key features and benefits

•

•

•

Commentary

Commentary

Commentary

Specific drivers

Specific drivers

Specific drivers

•

•

•

Commentary

Commentary

Commentary

Key players

Key players

Key players

•

•

•

Commentary

Commentary

Commentary

Overall opportunity

Overall opportunity

Overall opportunity

•

•

•

Commentary

© Zenith Global Ltd 2019

Commentary

Commentary

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