While China remains one of the biggest bottled water markets globally, research has shown that retail volume sales are on the decline, according to global market intelligence business Mintel.
In 2017, China’s bottled water market was forecast to reach sales volume of 27 billion litres, up from 25 billion in 2015.
However, sales volume growth has dipped from 5 per cent in 2015 to 4.2 per cent in 2017, and is predicted to fall further to 2.8 per cent by 2021.
The findings show that the expansion of bottled water has been relatively fast, with per capita consumption increasing from 5 litres in 2007 to 20 litres in 2017.
This is low in comparison compared to more developed markets such as Mexico (222 litres per capita) and the US (120 litres per capita).
Loris Li, associate director of Food and Drink at Mintel, said: “Due to trends in premiumisation, China’s bottled water industry has seen rapid growth over the past decade.
However, it was only a matter of time before market saturation started inhibiting growth potential for bottled water brands, especially amidst intensified competition in the wider beverage market.
With more Chinese consumers drinking bottled water, brands are under pressure to differentiate themselves from rivals.
Despite a saturated market, innovation opportunities still exist, and premiumisation remains key for value market growth.” Mintel’s research shows that half of Chinese consumers aged 20-49 drank unflavoured sparkling water in 2016, up from 29 per cent in 2015.
Furthermore, three in five drank flavoured sparkling water in 2016, an increase from 30 per cent in 2015.