Capital, Earnings & M&A
Hot Market, Widespread Losses: Why Is the Premium Water Sector So Awkward?
According to Nielsen data, the premium water market has maintained an annual growth rate of around 50% in recent years, with gross margins generally exceeding 30%. Attracted by this high growth and high margins, the premium water market is no longer the niche market once dominated by foreign imports. In recent years, established water companies like C'estbon, Nongfu Spring, and Uni-President, as well as newcomers such as Evergrande, Tianjin TEDA, and Taiji Group, have launched premium water products, while giants like PetroChina and Sinopec have entered through mergers and acquisitions. As a result, the premium water market now presents a paradox: on one hand, it appears vibrant with boundless opportunities; on the other, companies are generally reporting losses.
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