Zenith Global East Europe Water Dispense Market Report 2021

Zenith Global Report 2021

East Europe Water Dispense Market Report

© Zenith Global Ltd 2021

Copyright All copyright in this document is reserved.

Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith Global Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information.

Important notice on distribution This report should not be quoted, referred to or transmitted to another party, in whole or in part, with out the prior written consent of Zenith Global Ltd. Should you desire to release a copy of this report to another party for information purposes, we request you and the requesting party to indemnify Zenith Global Ltd from any liability related to the report distribution. Such readers however will not be considered “users” of this report.

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© Zenith Global Ltd 2021

Contents Section 1. Introduction and scope 2. Water dispense regional market overview 2.1 Market totals 2.2 Price structure and revenue indicators 2.3 Industry structure

2.4 Forecast 3. Bottled water dispense analysis 4. Point of use analysis 5. Integrated tap systems analysis

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Contents Section 6. Country reports Belarus Bulgaria Czechia Hungary

Poland Romania Russia Ukraine

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Contents Section 7. Data reports Croatia Estonia Latvia Lithuania

Serbia Slovakia Slovenia 8. Appendix

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1

6

Introduction and scope

© Zenith Global Ltd 2021

Introduction and scope Introduction

Scope

Zenith Global has actively reported on the European water dispense market for nearly thirty years, providing unparalleled insights into the market’s dynamics and evolution.

The 2021 report for East Europe 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 East Europe Water Dispense Market 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 European 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 East Europe Water Dispense Market Report covers Belarus, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine.

In addition to this report, regional coverage is also available for West Europe and the US.

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 regional market overview

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2

Water dispense regional market overview 2.1 Market totals

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East Europe Market totals - 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

East Europe Market totals - 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

East Europe Market totals - Water dispense unit share

Installed units

Water dispense market evolution, 2015-20

2015

2016

2017 BWD units

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2018 Pumps

POU units

2019 ITS units

2020

East Europe Market totals - Water dispense total unit volume by country 2015 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

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2016

2017

2018

2019

2020

% share 2019

% share 2020

15-20 CAGR

East Europe Market totals - Water dispense unit share by country Water dispense share by country, 2020 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

Bottled water dispense (BWD) units

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Dispensers/pumps units

Point of use (POU) units

Integrated tap systems (ITS) units

East Europe Market totals - Regulatory environment •

17

Commentary

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Water dispense regional market overview 2.2 Price structure and revenue indicators

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East Europe Price structure and revenue indicators - Water dispense revenue evolution Commentary

Water dispense revenue, 2015-20

€ million

•

2015

19

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2016

2017

2018

2019

BWD revenue (€ mln)

POU revenue (€ mln)

ITS revenue (€ mln)

Total revenue (€ mln)

2020

East Europe Price structure and revenue indicators - Average pricing 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 20

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2

Water dispense regional market overview 2.3 Industry structure

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East Europe Industry structure - Mergers and acquisitions •

22

Commentary

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East Europe Industry structure - Key acquisitions Key acquisitions Buyer

23

Target

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Country/Region

Date

East Europe Industry structure - Bottled water dispense •

24

Commentary

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East Europe Industry structure - Bottled water dispense top groups Units in December (1) Group 1 PL

Company, Poland

SB

Company, Serbia

BG

Company, Bulgaria

BY

Company, Belarus

SK

Company Slovakia

SI

Company Slovenia

HR

Company, Croatia

(2) Group 2 CZ

Company, Czechia

HU

Company, Hungary

LV

Company, Latvia

LT

Company, Lithuania

RU

Company, Russia

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2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

East Europe Industry structure - Bottled water dispense top 25 national companies Rank

Country

Company

1 2 3 4 5

6 7 8 9 10 11 12 13 14 15

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2015

2016

2017

2018

2019

2020

% share 2020

East Europe Industry structure - Bottled water dispense top 25 national companies Rank

Country

Company

16 17 18 19 20

21 22 23 24 25 Top 10 % share Top 25 % share Others East Europe

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2015

2016

2017

2018

2019

2020

% share 2020

East Europe Industry structure - Dispensers/pumps •

28

Commentary

© Zenith Global Ltd 2021

East Europe Industry structure - Dispensers/pumps top 25 national companies Rank

Country

Company

1 2 3 4 5

6 7 8 9 10 11 12 13 14 15

29

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2015

2016

2017

2018

2019

2020

% share 2020

East Europe Industry structure - Dispensers/pumps top 25 national companies Rank

Country

Company

16 17 18 19 20

21 22 23 24 25 Top 10 % share Top 25 % share Others East Europe

30

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2015

2016

2017

2018

2019

2020

% share 2020

East Europe Industry structure - Bulk bottled water •

31

Commentary

© Zenith Global Ltd 2021

East Europe Industry structure - Bulk bottled water top 25 national suppliers by volume Rank

Country

Company

1 2 3 4 5

6 7 8 9 10 11 12 13 14 15

32

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2015

2016

2017

2018

2019

2020

% share 2020

East Europe Industry structure - Bulk bottled water top 25 national suppliers by volume Rank

Country

Company

16 17 18 19 20

21 22 23 24 25 Top 10 % share

Top 25 % share Others East Europe

33

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2015

2016

2017

2018

2019

2020

% share 2020

East Europe Industry structure - Point of use •

34

Commentary

© Zenith Global Ltd 2021

East Europe Industry structure - Point of use top groups Units in December (1) Group 1 PL

Company, Poland

SB

Company, Serbia

BG

Company, Bulgaria

BY

Company, Belarus

SK

Company Slovakia

SI

Company Slovenia

HR

Company, Croatia

(2) Group 2 CZ

Company, Czechia

HU

Company, Hungary

LV

Company, Latvia

LT

Company, Lithuania

RU

Company, Russia

35

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2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

East Europe Industry structure - Point of use top 25 national companies Rank

Country

Company

1 2 3 4 5

6 7 8 9 10 11 12 13 14 15

36

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2015

2016

2017

2018

2019

2020

% share 2020

East Europe Industry structure - Point of use top 25 national companies Rank

Country

Company

16 17 18 19 20

21 22 23 24 25 Top 10 % share Top 25 % share Others East Europe

37

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2015

2016

2017

2018

2019

2020

% share 2020

East Europe Industry structure - Integrated tap systems •

38

Commentary

© Zenith Global Ltd 2021

East Europe Industry structure - Integrated tap systems top groups Units in December (1) Group 1 PL

Company, Poland

SB

Company, Serbia

BG

Company, Bulgaria

BY

Company, Belarus

SK

Company Slovakia

SI

Company Slovenia

HR

Company, Croatia

(2) Group 2 CZ

Company, Czechia

HU

Company, Hungary

LV

Company, Latvia

LT

Company, Lithuania

RU

Company, Russia

39

© Zenith Global Ltd 2021

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

East Europe Industry structure - Integrated tap systems top 25 national companies Rank

Country

Company

1 2 3 4 5

6 7 8 9 10 11 12 13 14 15

40

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2016

2017

2018

2019

2020

% share 2020

East Europe Industry structure - Integrated tap systems top 25 national companies Rank

Country

Company

16 17 18 19 20

21 22 23 24 25 Top 10 % share Top 25 % share Others East Europe

41

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2016

2017

2018

2019

2020

% share 2020

East Europe Industry structure - Innovation and disruption Touchless features •

Commentary

Power free pumps •

Commentary

Contactless smart tech and increased personalisation in hybrid dispensers

•

Commentary

Bottle filling stations help consumers reduce single use plastic bottles •

Commentary

BWD’s reduce plastic •

42

Commentary

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East Europe Industry structure - Innovation and disruption Space is premium for countertop POUs •

Commentary

Tap solutions for the HoReCa sector •

Commentary

COVID-security

•

Commentary

Self-sanitisation •

43

Commentary

© Zenith Global Ltd 2021

2

Water dispense regional market overview 2.4 Forecast

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East Europe Forecast - Water dispense market forecast •

Commentary

Covid impact on the water dispense sector in East Europe •

45

Commentary

© Zenith Global Ltd 2021

East Europe Forecast - Water dispense market 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

46

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2021f

2022f

2023f

2024f

2025f

20-25f CAGR

20-25f growth

East Europe Forecast - Water dispense unit share

Installed units

Water dispense market evolution, 2020-25f

2020

2021f

2022f BWD units

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Pumps

2023f POU units

ITS units

2024f

2025f

East Europe Forecast - Water dispense total unit volume by country 2020 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

48

© Zenith Global Ltd 2021

2021f

2022f

2023f

2024f

2025f

% share 2020

% share 2025f

20-25f CAGR

East Europe Forecast - Water dispense unit share by country Water dispense share by country, 2025f Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania

Poland Romania Russia Serbia Slovakia Slovenia Ukraine Bottled water dispense (BWD) units

49

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Dispensers/pumps units

Point of use (POU) units

Integrated tap systems (ITS) units

East Europe Forecast - Bottled water dispense units installed by country 2020 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

50

© Zenith Global Ltd 2021

2021f

2022f

2023f

2024f

2025f

% share 2020

% share 2025f

20-25f CAGR

East Europe Forecast - Dispensers/pumps units installed by country 2020 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

51

© Zenith Global Ltd 2021

2021f

2022f

2023f

2024f

2025f

% share 2020

% share 2025f

20-25f CAGR

East Europe Forecast - Bottled water dispense volume by country (million litres) 2020 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

52

© Zenith Global Ltd 2021

2021f

2022f

2023f

2024f

2025f

% share 2020

% share 2025f

20-25f CAGR

East Europe Forecast - Point of use units installed by country 2020 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

53

© Zenith Global Ltd 2021

2021f

2022f

2023f

2024f

2025f

% share 2020

% share 2025f

20-25f CAGR

East Europe Forecast - Integrated tap systems units installed by country 2020 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

54

© Zenith Global Ltd 2021

2021f

2022f

2023f

2024f

2025f

% share 2020

% share 2025f

20-25f CAGR

East Europe Forecast - Units per capita Units per '000 people 2015 Bottled water dispense Dispensers/pumps Point of use

Integrated tap systems

•

55

Commentary

© Zenith Global Ltd 2021

2020

2025f

15-20 growth

20-25f growth

3

56

Bottled water dispense analysis

© Zenith Global Ltd 2021

East Europe Bottled water dispense - Market analysis Market drivers and dynamics

Bottled water dispense units, 2015-20

Commentary

BWD installed units

•

2015

57

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2016

2017

2018

2019

2020

East Europe Bottled water dispense - Units installed by country 2015 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

58

© Zenith Global Ltd 2021

2016

2017

2018

2019

2020

% share 2019

% share 2020

15-20 CAGR

East Europe Bottled water dispense - Dispensers/pumps analysis Market drivers and dynamics

Dispensers/pumps units, 2015-20

Commentary

Dispensers/pumps units

•

2015

59

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2016

2017

2018

2019

2020

East Europe Bottled water dispense - Dispensers/pumps by country 2015 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

60

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2016

2017

2018

2019

2020

% share 2019

% share 2020

15-20 CAGR

East Europe Bottled water dispense - Volume analysis Market drivers and dynamics

Bottled water dispense volume, 2015-20

Commentary

Million litres

•

2015

61

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2016

2017

2018

2019

2020

East Europe Bottled water dispense - Volume by country (million litres) 2015 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

62

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2016

2017

2018

2019

2020

% share 2019

% share 2020

15-20 CAGR

East Europe Bottled water dispense - Market structure: Throughput •

Commentary

Litres per dispense unit 2019 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

63

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2020

18.9l bottles per unit per month 2019

2020

East Europe Bottled water dispense - Market structure: Cancellations •

Commentary

2019 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine East Europe

64

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2020

4

65

Point of use analysis

© Zenith Global Ltd 2021

East Europe Point of use - Market analysis Market drivers and dynamics

Point of use units, 2015-20

Commentary

POU installed units

•

2015

66

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2016

2017

2018

2019

2020

East Europe Point of use - Units installed by country 2015 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

67

© Zenith Global Ltd 2021

2016

2017

2018

2019

2020

% share 2019

% share 2020

15-20 CAGR

5

68

Integrated tap systems analysis

© Zenith Global Ltd 2021

East Europe Integrated tap systems - Market analysis Market drivers and dynamics

Integrated tap systems units, 2015-20

Commentary

ITS installed units

•

2015

69

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2016

2017

2018

2019

2020

East Europe Integrated tap systems - Units installed by country 2015 Belarus Bulgaria Croatia Czechia Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovakia Slovenia Ukraine

East Europe

70

© Zenith Global Ltd 2021

2016

2017

2018

2019

2020

% share 2019

% share 2020

15-20 CAGR

6

71

Country reports

© Zenith Global Ltd 2021

6

72

Country reports [COUNTRY]

© Zenith Global Ltd 2021

[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)

73

© Zenith Global Ltd 2021

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

74

© Zenith Global Ltd 2021

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

75

© Zenith Global Ltd 2021

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 76

© Zenith Global Ltd 2021

[COUNTRY] Market overview - Mode of commercialisation •

Commentary

•

Commentary

•

Commentary

Bottled water dispense

Point of use

Integrated tap systems

77

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[COUNTRY] Market overview - PESTLE analysis

78

P

E

S

T

L

E

Political

Economic

Social

Technological

Legal

Environmental

Commentary

Commentary

Commentary

Commentary

Commentary

Commentary

© Zenith Global Ltd 2021

[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

79

© Zenith Global Ltd 2021

2021f

2022f

2023f

2024f

2025f

20-25f CAGR

20-25f growth

[COUNTRY] Market overview - Forecast Water dispense market forecast

Future water consumption trends

•

•

80

Commentary

© Zenith Global Ltd 2021

Commentary

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

Integrated tap systems

•

Commentary

Opportunities •

81

Commentary

© Zenith Global Ltd 2021

2020

2025f

15-20 growth

20-25f growth

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

Bottled water dispense units, 2015-20

Commentary

BWD installed units

•

2015

82

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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

83

© Zenith Global Ltd 2021

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

84

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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

85

© Zenith Global Ltd 2021

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

86

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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

87

© Zenith Global Ltd 2021

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 •

88

Commentary

© Zenith Global Ltd 2021

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

89

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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%

90

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12%

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

Point of use units, 2015-20

Commentary

POU installed units

•

2015

91

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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

92

© Zenith Global Ltd 2021

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

93

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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

94

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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%

95

© Zenith Global Ltd 2021

12%

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

Integrated tap systems units, 2015-20

Commentary

ITS installed units

•

2015

96

© Zenith Global Ltd 2021

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

97

© Zenith Global Ltd 2021

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

98

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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%

99

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12%

7

100

Data reports

© Zenith Global Ltd 2021

7

101

Data reports [COUNTRY]

© Zenith Global Ltd 2021

[COUNTRY] Market overview - Water dispense market evolution

€ million

Installed units

Water dispense market evolution, 2015-20

2015

2016 BWD units

102

© Zenith Global Ltd 2021

2017 Pumps

2018 POU units

ITS units

2019 Total revenue (€ mln)

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

103

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2016

2017

2018

2019

2020

15-20 CAGR

15-20 growth

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

2019

2020

2019

2020

2019

2020

Water dispense revenue, 2015-20

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

- revenue from rented units

Point of use

Average monthly rental (€)

€ million

- revenue from bulk bottled water sales

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)

2015

2016

2017

2018

2019

- revenue from rented units

BWD revenue (€ mln)

POU revenue (€ mln)

- revenue from sold units

ITS revenue (€ mln)

Total revenue (€ mln)

104

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2020

[COUNTRY] Market overview - Units per capita evolution Units per '000 people 2015

Bottled water dispense Dispensers/pumps Point of use Integrated tap systems

105

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2020

2025f

15-20 growth

20-25f growth

[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

106

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2021f

2022f

2023f

2024f

2025f

20-25f CAGR

20-25f growth

[COUNTRY] Bottled water dispense - Market analysis Bottled water dispense volume, 2015-20

Million litres

BWD installed units

Bottled water dispense units, 2015-20

2015

2016

2017

2018

2019

2020

2015

2016

2017

2018

2019

2020

Dispensers/pumps units, 2015-20 Throughput

2019

2020

2019

2020

Dispensers/pumps units

Litres per dispense unit 18.9l bottles per dispense unit per month

Cancellations Quit rate %

2015

107

2016

2017

© Zenith Global Ltd 2021

2018

2019

2020

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

Company 1 Company 2 Company 3

Others Total market

108

© Zenith Global Ltd 2021

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

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

Company 1 Company 2 Company 3

Others Total market

109

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2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

[COUNTRY] Bottled water dispense - Unit analysis BWD channel distribution, 2020

BWD machine functionality, 2020

25%

Chilled 50% 13%

12%

Chilled-hot-boiling Workplace

13%

Chilled-hot

12%

25%

HoReCa

Healthcare Education Retail

BWD still-sparkling functionality, 2020

Transport hubs 13%

12%

Leisure Domestic

13%

12%

50%

50%

Still Still + sparkling

110

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[COUNTRY] Point of use - Market analysis Point of use units, 2015-20 Units added

BWD to POU conversions 2019

2020

Replacement POU (New) 2019

2020

Replacement rate %

POU installed units

Number of units

POU water types, 2020

50%

50%

Filtered Purified

2015

111

2016

2017

© Zenith Global Ltd 2021

2018

2019

2020

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

Company 1 Company 2 Company 3

Others Total market

112

© Zenith Global Ltd 2021

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

[COUNTRY] Point of use - Unit analysis POU channel distribution, 2020

POU machine functionality, 2020

25%

Chilled 50% 13%

12%

Chilled-hot-boiling Workplace

13%

Chilled-hot

12%

25%

HoReCa

Healthcare Education Retail

POU still-sparkling functionality, 2020

Transport hubs 13%

12%

Leisure Domestic

13%

12%

50%

50%

Still Still + sparkling

113

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[COUNTRY] Integrated tap systems - Market analysis

ITS installed units

Integrated tap systems units, 2015-20

2015

114

© Zenith Global Ltd 2021

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

115

© Zenith Global Ltd 2021

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

[COUNTRY] Integrated tap systems - Unit analysis ITS channel distribution, 2020

ITS machine functionality, 2020

25%

Chilled 50% 13%

12%

Chilled-hot-boiling Workplace

13%

Chilled-hot

12%

25%

HoReCa

Healthcare Education Retail

ITS still-sparkling functionality, 2020

Transport hubs 13%

12%

Leisure Domestic

13%

12%

50%

50%

Still Still + sparkling

116

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8

117

Appendix Glossary, acronyms and abbreviations

© Zenith Global Ltd 2021

Appendix Glossary •

Bottled water: All water sold in containers for human consumption.

•

Bulk bottled water: Bottled water sold in containers larger than 10 litres in size.

•

Bottler: Bottlers supply water to distributors in tankers or bottles. They have no dispense units of their own.

•

Bottler-distributors: Bottler-distributors have their own water source, fill bottles under their own brand, install their own dispense units and run their own distribution service. They may also fill bottles under contract for other distributors, either under their own brand or under distributor brands.

•

BWD conversions: Refers to the number of units converted from BWD to either POU or ITS.

•

Cancellations: Sometimes also called churn or quit rate. The number of installed units that are lost in the year, removing the unit altogether.

•

Carbon filtration: Cartridges in carbon filters naturally absorb organic compounds and chlorine by-products from water. The technique is often used to remove objectionable taste and odour from water.

•

Distributor: Distributors service their own machines using water supplied by bottlers or bottler-distributors. The water may be marketed under the bottler’s, bottler-distributor’s or the distributor’s brand name. This report measures the overall market for units installed in use in each calendar year by distributor until is it replaced or removed from the market. The ‘distributor’ shall be considered the company at the end of the chain, in direct contact with the end user (or with a facility management company directly supplying the end-user). Manufacturer units should only be counted when the manufacturer is also the distributor to the end client or operates through an exclusive dealership or franchise where manufacturer branding remains intact and only when the manufacturer operates under a combined direct and exclusive distributor network. If market presence is only through exclusive distributors, the units should be counted towards the distributor’s numbers. If a manufacturer’s unit is placed in field by another party and not by exclusive partnership (indirect sale), the unit should be counted under that other party if named, or captured under ‘others’. If a unit is placed in field by Company X, but after the initial contract expires continues to be serviced by Company Y, the unit is transferred to Company Y, adding one unit in that given year to its total, and subtracting one active unit from Company X, compared to the previous year.

•

Indirect sales: Sales that are not to an end-customer or facility manager are out of scope under distributor sales.

•

Packaged water: Bottled water that is not distributed for consumption via water coolers.

•

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.

118

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Appendix Glossary •

Purified water: Mains or other water subjected to further processing and treatment and bottled in accordance with EC Directive 80/778/EEC on Water for Human Consumption. Sometimes called ‘drinking water’ or ‘table water’. It may come from more than one source or not from a single underground source. It may include the public water supply or be transported from the source to the bottling plant. Bottling companies may carry out filtration and treatment processes on the water to amend its constituents before the water is distributed for sale. Some companies may also add mineral salts and carbon dioxide to their water.

•

Rented: A unit is considered rented under any kind of traditional rental (monthly payments), subscription or lease agreement/financing schemes, even if the lease fee is arranged through an intermediary party. Such units will count towards the unit total of the distributor company (the company holding the end-customer on contract) under such circumstances. BWD units supplied for free that are covered by a subscription contract of minimum monthly bottle orders or ad hoc water purchases are also considered units under rental, as the unit is subject to being returned to the distributor at the end of its life or contract, even if the unit itself does not attract a rental fee for placement in field. Rental contracts generally also include services.

•

Reverse osmosis: A water treatment process that filters out most inorganic chemicals such as salts, metals and minerals as well as micro-organisms and many (but not all) organic compounds. It is sometimes seen as a controversial filtration method as it frequently discards a high percentage of water along with the contaminants.

•

Service/maintenance: Including replacement filters, other spare parts, maintenance, sanitisation. These may entail regular payment as part of a contractual rental and service package attracting recurring revenue or a one-off separate payment.

•

Sold: A unit is considered sold when 100% of the purchase price is paid at the point of sale or prior to installation. There is no obligation to return the unit at the end of its life. Units may be purchased online or offline, through direct retail sales to an end-customer or facility manager. Service and maintenance contracts may still be attached to that unit, but this is purchased separately.

•

Throughput: The volume of bottled used per dispenser.

•

UV: UV filtration systems inactivate bacteria, viruses and micro-organisms.

•

Water treatment method (for POU and ITS): Filtration or purification (RO, purifying UV, Ozonation, hollow fibre membrane)

119

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Appendix Acronyms and abbreviations ...

Negligible, less than 0.05

f

Forecast

na

Not available, not applicable

B2B

Business-to-Business

BiB

Bag-in-box

BPA

Bisphenol A

BWCA

British Water Cooler Association

BWD

Bottled water dispenser

CAGR

Compound annual growth rate

EC

European Commission

EDWCA

European Drinking Water Cooler Association

EU

European Union

HOD

Home and office delivery

IMF

International Monetary Fund

ITS

Integrated tap system

NR

Non returnable packaging

OOH

Out-of-home

PET

Polyethylene terephthalate

POU

Point of use

R

Returnable packaging

RO

Reverse osmosis

120

© Zenith Global Ltd 2021

Appendix Acronyms and abbreviations SME

Small-and medium-sized enterprise

SSTI

Self-sanitising technology system

UNESCO

United Nations Educational, Scientific and Cultural Organization

UNESDA

Union of European Beverages Associations

UTS

Under the sink

UV

Ultra violet

VAT

Value-added tax

WE

Watercoolers Europe

WHA

The Water Dispenser & Hydration Association

WRAP

Waste Resources Action Programme

WRAS

Water Regulations Advisory Scheme

121

© Zenith Global Ltd 2021

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