Poor weather dampened UK water cooler growth in 2004
The UK bottled water cooler industry experienced a significant slowdown in 2004, according to a new report on UK Water Coolers from leading drinks consultancy Zenith International. The number of units installed rose by just 4% to 550,000. Poor summer weather, in contrast to the heatwave of 2003, contributed to a 5% decline in volume sales to 435 million litres.
“The fluctuations of fortunes between 2003 and 2004 underline the importance of the mercurial UK weather", commented Zenith Research Director Gary Roethenbaugh. "On the other hand, growing consumer awareness of health issues and the benefits of proper hydration has led to a more even spread of water consumption throughout the year."
After a wave of acquisitions in recent years, the leading players have placed less emphasis on growth while restructuring their portfolios. In 2004 the top ten companies’ share of units installed was 74%, up from 69% in 2003. In 1996 the figure stood at only 55%. The two leading players, Nestlé Waters Powwow and Danone joint venture Eden Springs UK, now represent more than half of the entire market. The purchase of number three Thirsty Work by Eden Springs UK in February 2005 has reinforced this consolidation process.
“Despite the strength of the major cooler operators, smaller local players still have a vital role to play in the industry,” added Gary Roethenbaugh. “They can offer a more personalised service that becomes much harder to maintain with national distribution.”
Another factor holding back bottled water cooler expansion is increased competition from mains fed point of use coolers. This has intensified pressure on prices, with bottled water in UK offices becoming increasingly viewed as a necessary cost rather than a luxury option.
Despite being held back in 2004, the cooler industry is expected to regain some of its previous momentum, placing a particular focus on opportunities among smaller and medium sized business customers. Up to 2009, water volumes and cooler units are both forecast to achieve compound annual growth of 7%. Zenith anticipates the market will exceed 750,000 units by 2009, with consumption above 600 million litres.
The 2005 Zenith Report on UK Water Coolers contains 137 pages including 38 company profiles, 18 market tables and a detailed commentary with charts. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com
For further information, please contact:
Gary Roethenbaugh or Anya Bourke, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
t +44 (0)1225 327900 f +44 (0)1225 327901
zenithinternational.com
“The fluctuations of fortunes between 2003 and 2004 underline the importance of the mercurial UK weather", commented Zenith Research Director Gary Roethenbaugh. "On the other hand, growing consumer awareness of health issues and the benefits of proper hydration has led to a more even spread of water consumption throughout the year."
After a wave of acquisitions in recent years, the leading players have placed less emphasis on growth while restructuring their portfolios. In 2004 the top ten companies’ share of units installed was 74%, up from 69% in 2003. In 1996 the figure stood at only 55%. The two leading players, Nestlé Waters Powwow and Danone joint venture Eden Springs UK, now represent more than half of the entire market. The purchase of number three Thirsty Work by Eden Springs UK in February 2005 has reinforced this consolidation process.
“Despite the strength of the major cooler operators, smaller local players still have a vital role to play in the industry,” added Gary Roethenbaugh. “They can offer a more personalised service that becomes much harder to maintain with national distribution.”
Another factor holding back bottled water cooler expansion is increased competition from mains fed point of use coolers. This has intensified pressure on prices, with bottled water in UK offices becoming increasingly viewed as a necessary cost rather than a luxury option.
Despite being held back in 2004, the cooler industry is expected to regain some of its previous momentum, placing a particular focus on opportunities among smaller and medium sized business customers. Up to 2009, water volumes and cooler units are both forecast to achieve compound annual growth of 7%. Zenith anticipates the market will exceed 750,000 units by 2009, with consumption above 600 million litres.
The 2005 Zenith Report on UK Water Coolers contains 137 pages including 38 company profiles, 18 market tables and a detailed commentary with charts. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com
For further information, please contact:
Gary Roethenbaugh or Anya Bourke, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
t +44 (0)1225 327900 f +44 (0)1225 327901
zenithinternational.com