--- title: "1 Yuan, 2 Yuan, 3 Yuan: Which Bottled Water Category Is Heading Toward 10 Billion in Sales?" description: "On the 27th, Ries Consulting released the 'Bottled Water Industry Analysis and Outlook Report', predicting that sparkling mineral water, with 2018 sales of 300 million yuan, could reach 10 billion yuan in five years. According to Euromonitor data, China's bottled water market grew from 31.6 billion liters in 2014 to 43.4 billion liters in 2018, an average annual growth rate of 8%, with sales volume approaching half of the entire soft drink market. Sales revenue increased from 114.5 billion yuan in 2014 to 174.3 billion yuan in 2018, accounting for 30% of the soft drink market. The current market structure is evolving from a pyramid to a spindle shape." author: "姜煜" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2019-09-03" categories: "Industry Trends, Management & Methods" language: "en" canonical: "https://xinjignxiao.com/en/articles/1-yuan-2-yuan-3-yuan-which-bottled-water-category-is-heading-toward-10-b-e70c46ef/" markdown: "https://xinjignxiao.com/en/articles/1-yuan-2-yuan-3-yuan-which-bottled-water-category-is-heading-toward-10-b-e70c46ef.md" original_source: "https://mp.weixin.qq.com/s/A1Gpbf6TtsXmxi3JkC1Q7w" translation: "https://xinjignxiao.com/zh/articles/1%E5%85%832%E5%85%833%E5%85%83-%E5%93%AA%E7%B1%BB%E7%93%B6%E8%A3%85%E6%B0%B4%E6%AD%A3%E5%9C%A8%E8%BF%88%E5%90%91%E7%99%BE%E4%BA%BF%E8%A7%84%E6%A8%A1-e70c46ef.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/1-yuan-2-yuan-3-yuan-which-bottled-water-category-is-heading-toward-10-b-e70c46ef/" citation: "姜煜. “1 Yuan, 2 Yuan, 3 Yuan: Which Bottled Water Category Is Heading Toward 10 Billion in Sales?.” New Distribution, 2019-09-03. https://xinjignxiao.com/en/articles/1-yuan-2-yuan-3-yuan-which-bottled-water-category-is-heading-toward-10-b-e70c46ef/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # 1 Yuan, 2 Yuan, 3 Yuan: Which Bottled Water Category Is Heading Toward 10 Billion in Sales? > On the 27th, Ries Consulting released the 'Bottled Water Industry Analysis and Outlook Report', predicting that sparkling mineral water, with 2018 sales of 300 million yuan, could reach 10 billion yuan in five years. According to Euromonitor data, China's bottled water market grew from 31.6 billion liters in 2014 to 43.4 billion liters in 2018, an average annual growth rate of 8%, with sales volume approaching half of the entire soft drink market. Sales revenue increased from 114.5 billion yuan in 2014 to 174.3 billion yuan in 2018, accounting for 30% of the soft drink market. The current market structure is evolving from a pyramid to a spindle shape. **On the 27th, Ries Consulting released the 'Bottled Water Industry Analysis and Outlook Report', predicting that sparkling mineral water, with 2018 sales of 300 million yuan, could reach 10 billion yuan in five years.** According to Euromonitor data, China's bottled water market grew from 31.6 billion liters in 2014 to 43.4 billion liters in 2018, an average annual growth rate of 8%, with sales volume approaching half of the entire soft drink market. Sales revenue increased from 114.5 billion yuan in 2014 to 174.3 billion yuan in 2018, accounting for 30% of the soft drink market. The current structure of China's bottled water market is evolving from a pyramid to a spindle shape. Zhang Yun, global partner at Ries Consulting, analyzed: "In the past five years, while bottled water has grown, other soft drinks have declined. Bottled water, which is tasteless and colorless, has returned to the mainstream as a primary beverage, reflecting a trend toward simplicity and health. Consumers' requirements for water quality are not only reflected in daily drinking water but also in cooking water." Ries Consulting's consumer research indicates that although the bottled water industry is divided into three categories—mineral water, natural water, and purified water—**in consumers' minds, price is the primary differentiator: 1 yuan, 2 yuan, 3 yuan, and 4 yuan and above.** The current bottled water consumption market is evolving from a pyramid to a spindle shape. The 1-yuan water segment is shrinking due to issues with water sources and additives. The 2-yuan water segment is experiencing an influx of consumers from the 1-yuan tier due to consumption upgrades, while simultaneously losing some consumers to the 3-yuan tier, so its overall size remains stable. The 3-yuan water segment is retaining its original consumers while attracting those from the 2-yuan tier, gradually expanding and maturing. The 4-yuan and above premium mineral water segment is in its infancy, still in the early stages. The report points out that **sparkling mineral water is a new category formed by segmenting the category.** Sparkling mineral water originated in Europe and entered the Chinese market in the early 20th century. In the past three years, it has grown at a rate of about 50% in China, with sales volume reaching 6.1 million liters in 2018 and sales revenue of 300 million yuan, both six times that of 2014. Currently, imported brands such as Perrier, San Pellegrino, and Badoit hold a dominant position, with a market share exceeding 70%. However, Zhang Yun revealed that some domestic brands are planning to enter the sparkling mineral water segment, aiming to secure a place in this potentially huge market. The sparkling mineral water market holds great potential. Zhang Yun analyzed: "Sparkling mineral water is perceived by consumers as superior to ordinary mineral water. This category has shown signs of taking off in first- and second-tier markets, and these cities will remain the origin markets for high growth over the next five years. At the same time, consumption scenarios will continue to expand, from being concentrated in restaurants and bars to everyday life scenarios." Zhang Yun suggested that companies focus on the mainstream price range, which is still vacant, and can quickly popularize and expand the category by launching affordable sparkling mineral water, presenting a strategic opportunity to build a 10-billion-yuan brand. While sparkling mineral water is growing rapidly, a new category called "cooked water" has quietly emerged. The report analyzes that "cooked water" bottled water appeared in 2016. Cooked water is packaged drinking water produced through a physical heating sterilization process at no less than 100°C. This category has a disruptive impact on the classification of mineral water, and new subcategories will emerge within the cooked water category. The prospects for this category are worth anticipating. Looking at the overall development of bottled water, Zhang Yun concluded: "China's bottled water market will exceed 200 billion yuan within two years. Currently, the market has produced two 10-billion-yuan brands, Nongfu Spring and Ganten, but there is still room for two to three more 10-billion-yuan brands. Companies should enter the right market at the right time, grasp the rules of growth stages, and build brands with the right positioning at the right time." 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