Zenith Global Single Country West Europe Water Dispense Report 2020

Zenith Global Report 2020

[Country] Water Dispense Market Report

Š Zenith Global Ltd 2020

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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 2020 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 under the sink 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 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 2020 contains text, charts and tables providing analysis of recent market developments and innovations and forecasts to 2024. This, Zenith Global’s 26th 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 West Europe Water Dispense Report which also covers Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK.

Christina Avison Insight Manager

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Definitions Unit types Water dispense: Water dispense units where the primary function is the dispense of filtered and purified water, comprising bottled water 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 mineral, spring or purified water that can be 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/service agreement or purchased outright by the customer. Disposable cups may be provided and are located in a tube on the front or side. Bottle fed machines can be freestanding or table-top and are suitable for larger bottle or pouch formats greater than 10 litres and are therefore larger than those distributed in small packaged formats through retail outlets.

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.

Typical methods include ultra violet (UV), carbon filter and reverse osmosis. Dispensed water can be 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 table-top units.

Integrated tap systems (ITS): A mains fed water system that filters or purifies mains water and directs the water to the tap. These systems may utilise carbon filtration, combined/staged filtration or reverse osmosis technology to treat the water. Dispensed water can be cold, hot, boiling or sparkling, depending on machine functionality. The units are placed either under the sink or under the counter and are often referred to as ‘under counter’ or ‘under sink’ systems.

Hybrid point of use (HPOU) dispense unit: These units dispense soft drinks and juices as well as mains fed water, but whose primary purpose is not water.

Water boilers: The primary function of these units is to boil water as a source of hot water for making hot drinks such as tea and coffee, but not chilled dispensed water.

Vending machines: An automated machine that provides ready to drink hot and cold beverages, but whose primary purpose is not water vending.

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Definitions Channels 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, stations, transport hubs.

Leisure:

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

Domestic:

Residential homes.

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Water dispense market overview

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[Country] Market overview - Water dispense market evolution •

Commentary

Water dispense market evolution, 2014-2019

2,000

1,200

1,800 1,000

Key acquisitions •

Commentary

1,400 800 1,200

1,000

€ million

Installed units

1,600

600

800 400 600

400 200 200 0

0 2014

BWD units

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2015 POU units

2016

2017 ITS units

2018

2019 Total revenue (€ mln)

[Country] Market overview - Water dispense market evolution 2014 Bottled water dispense (BWD) units % growth Million litres % growth Point of use (POU) units % growth Integrated tap systems (ITS) units

% growth Total units % growth BWD % share POU % share ITS % share

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2015

2016

2017

2018

2019

14-19 CAGR

14-19 growth

[Country] Market overview - Water dispense revenue evolution •

Commentary

Water dispense revenue, 2014-19 1,200

1,000

€ million

800

600

400

200

0 2014

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2015

2016

2017

2018

BWD revenue (€ mln)

POU revenue (€ mln)

ITS revenue (€ mln)

Total revenue (€ mln)

2019

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

2018

2019

2018

2019

2018

2019

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

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•

Commentary

[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 2019 Bottled water dispense (BWD) units % growth Million litres % growth Point of use (POU) units % growth Integrated tap systems (ITS) units

% growth Total units % growth BWD % share POU % share ITS % share

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2020f

2021f

2022f

2023f

2024f

19-24f CAGR

19-24f 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 2014 Bottled water dispense Point of use Integrated tap systems

•

Commentary

Opportunities •

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Commentary

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2019

2024f

14-19 growth

19-24f growth

3

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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, 2014-19

Bottled water dispense volume, 2014-19

1,200

160.0 140.0 120.0

800

Million litres

BWD installed units

1,000

600 400

60.0

20.0

0

0.0 2014

2015

Market drivers and dynamics

19

80.0

40.0 200

•

100.0

Commentary

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2016

2017

2018

2019

2014

2015

2016

2017

2018

2019

[Country] Bottled water dispense - Units installed by company Units in December Company 1 Company 2 Company 3

Others Total market

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2014

2015

2016

2017

2018

2019

% share 2018

% share 2019

% 19-18

[Country] Bottled water dispense - Volume by company Million litres Company 1 Company 2

Company 3

Others Total market

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2014

2015

2016

2017

2018

2019

% share 2018

% share 2019

% 19-18

[Country] Bottled water dispense - Market structure Throughput

2018

2019

2018

2019

Litres per dispense unit 18.9l bottles per dispense unit per month Cancellations Quit rate %

Throughput

•

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Commentary

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Cancellations

•

Commentary

Contract lengths

•

Commentary

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

BWD machine functionality, 2019

Commentary

25% Chilled 50%

Chilled + hot Chilled + hot + boiling

25%

Still-sparkling functionality •

BWD still-sparkling functionality, 2019

Commentary

50%

50%

Still Still + sparkling

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[Country] Bottled water dispense - Channel analysis •

Commentary

BWD channel distribution, 2019

13%

12% Workplace HoReCa

13%

12%

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 - Volume market analysis Point of use units, 2014-19 Units added

600

2018

POU installed units

500

Replacement rate %

400

Number of units

300 200 100 0 2014

2015

Market drivers and dynamics •

Commentary

Conversion •

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BWD to POU conversions

Commentary

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2016

2017

2018

2019

2019

New POU placements 2018

2019

[Country] Point of use - Units installed by company Units in December Company 1 Company 2

Company 3

Others Total market

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2014

2015

2016

2017

2018

2019

% share 2018

% share 2019

% 19-18

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

POU machine functionality, 2019

Commentary

25% Chilled 50%

Chilled + hot Chilled + hot + boiling

25%

Still-sparkling functionality •

POU still-sparkling functionality, 2019

Commentary

50%

50%

Still Still + sparkling

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[Country] Point of use - Channel analysis •

Commentary

POU channel distribution, 2019

13%

12% Workplace HoReCa

13%

12%

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 - Volume market analysis Market drivers and dynamics •

Integrated tap system units, 2014-19

Commentary

300

250

ITS installed units

200

150

100

50

0 2014

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2015

2016

2017

2018

2019

[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

% share 2018

% share 2019

% 19-18

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

ITS machine functionality, 2019

Commentary

25% Chilled 50%

Chilled + hot Chilled + hot + boiling

25%

Still-sparkling functionality •

ITS still-sparkling functionality, 2019

Commentary

50%

50%

Still Still + sparkling

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[Country] Integrated tap systems - Channel analysis •

Commentary

ITS channel distribution, 2019

13%

12% Workplace HoReCa

13%

12%

Healthcare Education Retail Transport hubs

13%

12%

Leisure Domestic

13%

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12%

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