Zenith Global East Europe Country Water Dispense Market Report 2021

Zenith Global Report 2021

[COUNTRY] Water Dispense Market Report

© Zenith Global Ltd 2021

Copyright All copyright in this document is reserved.

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Contents Section 1. Introduction and scope 2. Water dispense market overview

3. Bottled water dispense analysis, insights and opportunities 4. 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 [COUNTRY] water dispense market for nearly thirty years, providing unparalleled insights into the market’s dynamics and evolution.

The 2021 report for [COUNTRY] covers water dispense units where the primary function is the dispense of filtered/purified water. Specifically bottled water dispense units, mains fed point of use dispensers and multifunctional integrated tap systems dispensing cold, hot, boiling still and sparkling water are within the scope of this report. The addition, since 2019, of integrated tap systems represents the most significant revision of scope in the last decade and was revised in collaboration with industry leading companies to reflect the evolution and innovation of this market.

To reflect the evolution of water dispense, Zenith revised the report in 2019 to include specific coverage on integrated tap systems alongside more traditional bottle free point of use and bottle fed dispense units. The reports also now feature increased focus on market insights and opportunities with channel-specific 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. 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.

The [COUNTRY] Water Dispense Report 2021 contains text, charts and tables providing analysis of recent market developments and innovations and forecasts to 2025. This report represents exceptional coverage of the [COUNTRY] 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.

Whilst beverage and soda dispense units can dispense water, this is not their primary purpose and as such these “hybrid” machines are referenced, where applicable, in the market innovation section but are not quantified in the report. Equally, vending machines and water boilers are not in the scope of this report.

The [COUNTRY] report is part of the East Europe Water Dispense Report which also covers Belarus, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine.

Christina Avison Associate Director - Commercial

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Definitions Unit types Water dispense: freestanding, countertop or under the sink/counter water dispense units where the primary function is the dispense of filtered or purified water. Powered units dispensing ambient, cold, hot, boiling still and/or sparkling water are within the scope of this report as defined further below.

Bottled water dispense units (BWD): A unit that dispenses bottled mineral, spring or purified water that can be ambient, cold or hot, depending on machine functionality. Most commonly, water bottles or 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 (bottom fed) or inverted and placed on top of the machine (top fed). 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 valve 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.

The unit can be installed under a rental, lease or service agreement (considered “rental”) or purchased outright by the customer (considered “sold”, with or without a service contract). Bottle fed machines can be freestanding or countertop and are suitable for larger bottle or pouch formats greater than 10 litres, which are therefore larger than those distributed in small packaged formats through retail outlets.

Pumps/ceramics (non-powered/non-installed systems) for formats above 10 litres are included at the topline for East Europe, where they have a significant market share.

Bottle-free Point of use units (POU): A device that is plumbed into a mains fed water supply, improving the quality of water via filtration or purification methods. These systems may utilise carbon filtration, combined/staged filtration, reverse osmosis (RO), Ozonation, and/or ultra violet (UV) technology to treat the water. Dispensed water can be ambient, cold, hot or sparkling, depending on machine functionality. Such machines have drip trays and some have drainage systems. Machines can be available as freestanding or countertop units. Large volume POU bottle fillers (BFS) are also included if they offer filtration/purification.

Bottle-free Integrated tap systems (ITS): A mains fed water system that filters or purifies mains water, adds functionality (hot/boiling/sparkling) and directs the water to the tap. Sometimes also called multifunctional taps. These systems may utilise carbon filtration, combined/staged filtration, reverse osmosis, Ozonation, and/or UV technology to treat the water. Dispensed water can be ambient, cold, hot, plus boiling or at various sparkling levels, depending on machine functionality. Three-way/mixer taps (dispensing cold, hot and filtered water only) are out of scope. The units are placed either under the sink or under the counter and are often referred to as ‘under counter’ or ‘under sink’ systems. One unit in field is considered to include both the under sink unit and the tap attached.

Out of scope: Units where water is dispensed but this is not their primary purpose: e.g. beverage and soda dispense units; automated vending machines that provide ready to drink hot and cold beverages, but whose primary purpose is not water vending; Flavoured water dispensers; Units where un-filtered or un-purified water is dispensed, whether chilled or ambient e.g. water fountains, domestic or commercial water filters for taps without added functionality; Water boilers where the primary function is to boil water for making hot drinks, but not chilled dispensed water; Whole home domestic POE filtration systems; Fridge dispensers, embedded filters and faucet-mounts; Non-installed dispense units, including jug filters or pitchers and soda makers.

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Definitions Channels Workplace:

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

HoReCa:

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

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 and showrooms.

Transport hubs: Airports, railway stations, coach/bus stations.

Leisure:

Leisure centres, gyms, sports centres, swimming pools, activity centres.

Domestic:

Residential homes (B2C).

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Water dispense market overview

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[COUNTRY] Market overview - Water dispense market evolution Commentary

•

€ million

Key acquisitions

Water dispense market evolution, 2015-20

Installed units

•

Commentary

2015

2016

2017

BWD units

Pumps

POU units

ITS units

Total revenue (€ mln)

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2018

2019

2020

[COUNTRY] Market overview - Water dispense market evolution 2015

Bottled water dispense (BWD) units % growth Dispensers/pumps units % growth Million litres

% growth Point of use (POU) units % growth Integrated tap systems (ITS) units % growth Total units % growth BWD % share Dispensers/pumps % share POU % share ITS % share

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2016

2017

2018

2019

2020

15-20 CAGR

15-20 growth

[COUNTRY] Market overview - Water dispense revenue evolution Commentary

Water dispense revenue, 2015-20

€ million

•

2015

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2016

2017

2018

2019

BWD revenue (€ mln)

POU revenue (€ mln)

ITS revenue (€ mln)

Total revenue (€ mln)

2020

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

2019

2020

2019

2020

2019

2020

•

Commentary

•

Commentary

•

Commentary

Average monthly rental (€) Average 18.9l bottle price (€) Total revenue (€ mln)

- revenue from rented units - revenue from bulk bottled water sales Point of use

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

Integrated tap systems Average monthly rental (€) Average sales price per unit (€) Total revenue (€ mln)

- revenue from rented units - revenue from sold units 12

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[COUNTRY] Market overview - Mode of commercialisation •

Commentary

•

Commentary

•

Commentary

Bottled water dispense

Point of use

Integrated tap systems

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[COUNTRY] Market overview - PESTLE analysis

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P

E

S

T

L

E

Political

Economic

Social

Technological

Legal

Environmental

Commentary

Commentary

Commentary

Commentary

Commentary

Commentary

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[COUNTRY] Market overview - Forecast 2020

Bottled water dispense (BWD) units % growth Dispensers/pumps units % growth Million litres

% growth Point of use (POU) units % growth Integrated tap systems (ITS) units % growth Total units % growth BWD % share Dispensers/pumps % share POU % share ITS % share

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2021f

2022f

2023f

2024f

2025f

20-25f CAGR

20-25f growth

[COUNTRY] Market overview - Forecast Water dispense market forecast

Future water consumption trends

•

•

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Commentary

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Commentary

[COUNTRY] Market overview - Opportunities Units per '000 people 2015 Bottled water dispense Dispensers/pumps Point of use

Integrated tap systems

•

Commentary

Opportunities •

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Commentary

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2020

2025f

15-20 growth

20-25f growth

3

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Bottled water dispense analysis, insights and opportunities

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[COUNTRY] Bottled water dispense - Market analysis Market drivers and dynamics

Bottled water dispense units, 2015-20

Commentary

BWD installed units

•

2015

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2016

2017

2018

2019

2020

[COUNTRY] Bottled water dispense - Units installed by company Units in December

Company 1 Company 2 Company 3

Others Total market

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2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

[COUNTRY] Bottled water dispense - Dispensers/pumps analysis Market drivers and dynamics

Dispensers/pumps units, 2015-20

Commentary

Dispensers/pumps units

•

2015

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2016

2017

2018

2019

2020

[COUNTRY] Bottled water dispense - Pumps installed by company Units in December

Company 1 Company 2 Company 3

Others Total market

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2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

[COUNTRY] Bottled water dispense - Volume analysis Market drivers and dynamics

Bottled water dispense volume, 2015-20

Commentary

Million litres

•

2015

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2016

2017

2018

2019

2020

[COUNTRY] Bottled water dispense - Volume by company Million litres

Company 1 Company 2 Company 3

Others Total market

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2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

[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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2019

2020

Cancellations Quit rate %

2019

2020

[COUNTRY] Bottled water dispense - Unit analysis Machine functionality •

BWD machine functionality, 2020

Commentary

25%

Chilled 50%

Chilled-hot Chilled-hot-boiling

25%

Still-sparkling functionality •

BWD still-sparkling functionality, 2020

Commentary

50%

50%

Still Still + sparkling

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[COUNTRY] Bottled water dispense - Channel analysis •

Commentary

BWD channel distribution, 2020

13%

12% Workplace

13%

12%

HoReCa

Healthcare Education Retail Transport hubs

13%

12%

Leisure Domestic

13%

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12%

4

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Point of use water analysis, insights and opportunities

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[COUNTRY] Point of use - Market analysis Market drivers and dynamics

Point of use units, 2015-20

Commentary

POU installed units

•

2015

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2016

2017

2018

2019

2020

[COUNTRY] Point of use - Units installed by company Units in December

Company 1 Company 2 Company 3

Others Total market

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2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

[COUNTRY] Point of use - Market structure Conversion •

Commentary

Units added

BWD to POU conversions 2019

2020

Replacement POU (New) 2019

2020

Replacement rate % Number of units

Filtration method •

POU water types, 2020

Commentary

50%

50%

Filtered Purified

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[COUNTRY] Point of use - Unit analysis Machine functionality •

POU machine functionality, 2020

Commentary

25%

Chilled 50%

Chilled-hot Chilled-hot-boiling

25%

Still-sparkling functionality •

POU still-sparkling functionality, 2020

Commentary

50%

50%

Still Still + sparkling

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[COUNTRY] Point of use - Channel analysis •

Commentary

POU channel distribution, 2020

13%

12% Workplace

13%

12%

HoReCa

Healthcare Education Retail Transport hubs

13%

12%

Leisure Domestic

13%

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12%

5

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Integrated tap systems analysis, insights and opportunities

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[COUNTRY] Integrated tap systems - Market analysis Market drivers and dynamics

Integrated tap systems units, 2015-20

Commentary

ITS installed units

•

2015

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2016

2017

2018

2019

2020

[COUNTRY] Integrated tap systems - Units installed by company Units in December Company 1

Company 2 Company 3

Others

Total market

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2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

[COUNTRY] Integrated tap systems - Unit analysis Machine functionality •

ITS machine functionality, 2020

Commentary

25%

Chilled 50%

Chilled-hot Chilled-hot-boiling

25%

Still-sparkling functionality •

ITS still-sparkling functionality, 2020

Commentary

50%

50%

Still Still + sparkling

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[COUNTRY] Integrated tap systems - Channel analysis •

Commentary

ITS channel distribution, 2020

13%

12% Workplace

13%

12%

HoReCa

Healthcare Education Retail Transport hubs

13%

12%

Leisure Domestic

13%

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12%

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