The domestic bottled drink market is getting ‘scorching hot’ because of the increasingly high demand for drinks that are good for health.
Retailers say that food and drinks are two categories of products witnessing stable sales growth. It is estimated that bottled drink products are found in 4-5 out of every 10 carts at supermarkets, according to a marketing director of a retail chain in HCMC.
He went on to say that consumers now like bottled energy drinks such as fruit juice and general drinks.
“Previously, people were indifferent to bottled water because they thought the quality of water was the same everywhere. However, they have changed their mind, realizing that with technology, manufacturers can create products with minerals good for people’s health,” he said.
Recent research by Euromonitor showed that the world’s bottled water market may double by 2022 with estimated value of $319 billion.
A survey conducted in 2015 showed that the bottled water market value reached $170 billion by that year and the figure was expected to increase by 10 percent by 2020. In the segment, water products are dominating with 35 percent of market share, while carbonated drinks account for 22 percent.
Bottled water is expected to see the highest growth rate as consumers tend to use drinks which can provide energy. The institution also predicted that Asia Pacific, including Vietnam, would lead the world’s market in terms of growth.
The attractiveness of the bottled water market has prompted more investors to pour money into the industry.
According to Vu Vinh Phu, former director of the Hanoi Trade Department, bottled drinks are products with the highest growth rate in Vietnam in recent years which bring higher profits than other business fields.
In Vietnam, there are thousands of workshops making purified and mineral water products distributed through 700 supermarkets, 125 shopping centers and tens of thousands of retail shops.
A report by VietQ released in January 2018 showed that Aquafina (PepsiCo), Sapuwa (the Saigon Purified Water Company) and Joy (Coca-Cola) are dominating the market.
In the bottled mineral water, La Vie, a brand of Nestle, is dominating the market with market share far exceeding the No 2 Vital and No 3 Vinh Hao. There are about 20 other brands in the market segment.
Most recently, a Satori plant, which can churn out 10,000 bottles of purified water and 450 20-liter tanks an hour, satisfying 20-30 percent of market demand, was put into operation. Its products, 350 ml, 500 ml, 1.5 liter and 20 liter bottles, have been available since September.