East Europe Water Dispense Report 2023 Country Sample

Page 1

ZENITH

[Country] Water Dispense Market Report

ZENITH
COMMERCIAL
2023
GLOBAL
REPORT
GLOBAL

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 Commercial 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, without the prior written consent of Zenith Global Commercial 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 Commercial Ltd from any liability related to the report distribution. Such readers however will not be considered “users” of this report.

2
Copyright

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

© Zenith Global Commercial Ltd 2023
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Page
Contents
Section

Introduction and scope

© Zenith Global Commercial Ltd 2023
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Introduction and scope

Introduction

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

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 Hungary Water Dispense Report 2023 contains text, charts and tables providing analysis of recent market developments and innovations and forecasts to 2027. This report represents exceptional coverage of the Hungarian 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.

Scope

The 2023 report for Hungary 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.

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

© Zenith Global Commercial Ltd 2023
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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. The report's scope includes only B2B units.

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

Key acquisitions

• Commentary

Water dispense market evolution, 2017-22

BWD units Dispensers/pumps units

POU units ITS units

Total revenue (€ mln)

© Zenith Global Commercial Ltd 2023 2017 2018 2019 2020 2021 2022 € million Installed units
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SAMPLE

[COUNTRY]

Market overview - Water dispense market evolution

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

© Zenith Global Commercial Ltd 2023
2017 2018 2019 2020 2021 2022 17-22 CAGR 17-22 growth
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© Zenith Global Commercial Ltd 2023
11 Market overview - Water dispense revenue evolution • Commentary SAMPLE 2017 2018 2019 2020 2021 2022 € million Water dispense revenue, 2017-22 BWD revenue (€ mln) POU revenue (€ mln) ITS revenue (€ mln) Total revenue (€ mln)
[COUNTRY]

[COUNTRY]

Market overview - Price structure and revenue indicators

Bottled water dispensers 2021 2022

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

2021 2022

• Commentary

• Commentary

Integrated tap systems 2021 2022

Average monthly rental (€)

Average sales price per unit (€)

Total revenue (€ mln)

- revenue from rented units

- revenue from sold units

• Commentary

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[COUNTRY]

Market overview - Mode of commercialisation

• Commentary

Bottled water dispense

Point of use

• Commentary

Integrated tap systems

• Commentary

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overview - PESTLE analysis P Political E Economic S Social T Technological L Legal E Environmental Commentary Commentary Commentary Commentary Commentary Commentary
[COUNTRY]
Market

[COUNTRY]

Market overview - Forecast

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

© Zenith Global Commercial Ltd 2023
2022 2023f 2024f 2025f 2026f 2027f 22-27f CAGR 22-27f growth
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[COUNTRY]

Market overview - Forecast

Water dispense market forecast

• Commentary

Future water consumption trends

• Commentary

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[COUNTRY]

Market overview - Opportunities

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Units per '000 people 2017 2022 2027f 17-22 growth 22-27f growth Bottled water dispense Dispensers/pumps Point of use Integrated tap systems • Commentary Opportunities • Commentary

Bottled water dispense analysis, insights and opportunities

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[COUNTRY]

Bottled water dispense - Market analysis

Market drivers and dynamics

• Commentary

Bottled water dispense units, 2017-22

© Zenith Global Commercial Ltd 2023 2017 2018 2019 2020 2021 2022 BWD installed units
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SAMPLE

[COUNTRY]

Bottled water dispense - Units installed by company

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Units in December 2017 2018 2019 2020 2021 2022 % share 2021 % share 2022 % 22-21 Company 1 Company 2 Company 3 Others Total market

[COUNTRY]

Bottled water dispense - Dispensers/pumps analysis

Market drivers and dynamics

• Commentary

Dispensers/pumps

© Zenith Global Commercial Ltd 2023 2017 2018 2019 2020 2021 2022 Dispensers/pumps installed units
units,
2017-22
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SAMPLE

[COUNTRY]

Bottled water dispense - Pumps installed by company

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Units in December 2017 2018 2019 2020 2021 2022 % share 2021 % share 2022 % 22-21 Company 1 Company 2 Company 3 Others Total market

[COUNTRY]

Bottled water dispense - Volume analysis

Market drivers and dynamics

• Commentary

Bottled water dispense volume, 2017-22

© Zenith Global Commercial Ltd 2023 2017 2018 2019 2020 2021 2022 Million litres
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SAMPLE

Bottled water dispense - Volume by company

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[COUNTRY]
Million litres 2017 2018 2019 2020 2021 2022 % share 2021 % share 2022 % 22-21 Company 1 Company 2 Company 3 Others Total market

Bottled water dispense - Market structure

© Zenith Global Commercial Ltd 2023 Throughput • Commentary Cancellations • Commentary Contract lengths • Commentary
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[COUNTRY]
Cancellations 2021 2022 Quit rate % Throughput 2021 2022 Litres per dispense unit 18.9l bottles per dispense unit per month

[COUNTRY]

Bottled water dispense - Unit analysis

Machine functionality

• Commentary

BWD machine functionality, 2022

25%

Chilled

Chilled-hot

Chilled-hot-boiling

Still-sparkling functionality

• Commentary

BWD still-sparkling functionality, 2022

Still Still + sparkling

© Zenith Global Commercial Ltd 2023 50% 25%
50% 50%
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SAMPLE SAMPLE

[COUNTRY]

Bottled water dispense - Channel analysis

BWD channel distribution, 2022

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SAMPLE 12% 12% 12% 12% 13% 13% 13% 13%
• Commentary
Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic

Point of use water analysis, insights and opportunities

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Point of use - Market analysis

Market drivers and dynamics • Commentary

© Zenith Global Commercial Ltd 2023 2017 2018 2019 2020 2021 2022 POU installed units
of use units, 2017-22
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Point
[COUNTRY]
SAMPLE

[COUNTRY]

Point of use - Units installed by company

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Units in December 2017 2018 2019 2020 2021 2022 % share 2021 % share 2022 % 22-21 Company 1 Company 2 Company 3 Others Total market

[COUNTRY]

Point of use - Market structure

Conversion

• Commentary

Units added

Replacement rate %

Number of units

BWD to POU conversions

Replacement POU (New)

2021 2022 2021 2022

Filtration method

• Commentary

POU water types, 2022

Filtered Purified

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50% 50%
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SAMPLE

[COUNTRY]

Point of use - Unit analysis

Machine functionality

• Commentary

POU machine functionality, 2022

Chilled

Chilled-hot

Chilled-hot-boiling

Still-sparkling functionality

• Commentary

POU still-sparkling functionality, 2022 Still Still + sparkling

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50% 25% 25%
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SAMPLE SAMPLE

Point of use - Channel analysis

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[COUNTRY]
• Commentary 12% 12% 12% 12% 13% 13% 13% 13% POU channel distribution, 2022 Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic SAMPLE

Integrated tap systems analysis, insights and opportunities

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Integrated tap systems - Market analysis

Market

© Zenith Global Commercial Ltd 2023 2017 2018 2019 2020 2021 2022 ITS installed units Integrated tap systems units, 2017-22
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[COUNTRY]
drivers and dynamics
Commentary SAMPLE
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Units in December 2017 2018 2019 2020 2021 2022 % share 2021 % share 2022 % 22-21 Company 1 Company 2 Company 3 Others Total market
[COUNTRY]
Integrated tap systems - Units installed by company

[COUNTRY]

Integrated tap systems - Unit analysis

Machine functionality

• Commentary

ITS machine functionality, 2022

Chilled Chilled-hot

Chilled-hot-boiling

Still-sparkling functionality

• Commentary

ITS still-sparkling functionality, 2022 Still Still + sparkling

© Zenith Global Commercial Ltd 2023 50% 50%
50% 25%
25%
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SAMPLE SAMPLE

Integrated tap systems - Channel analysis

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[COUNTRY]
• Commentary 12% 12% 12% 12% 13% 13% 13% 13% ITS channel distribution, 2022 Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic SAMPLE
© Zenith Global Commercial Ltd 2023 39 Contact us For further information regarding this report, or for a tailor made study specific to your requirements please contact: Akos Petri Director - Commercial Consulting apetri@zenithglobal.com www.zenithglobal.com

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