The "water war" of the 200 billion market




The "water war" of the 200 billion market, Yili, Haoliyou, Jinshahe, Want Want, Tsingtao Beer... all began to sell water across the border.
 
Water is becoming a clear leader in the beverage category, providing all the benefits that consumers seek, including the benefits of previous beverage subcategories. According to market research firm Zenith Global, bottled water will be the largest category in the beverage sector, replacing all other soft drinks in the world.




Euromonitor data shows that China's bottled water market in 2013-2018 China's bottled water sales scale has increased year by year, from 106.92 billion in 2013 to 183.09 billion yuan in 2018, with an average annual compound growth rate of 11.8%. In 2018, bottled water sales reached 43.4 billion liters, nearly half of the entire soft drink market, with sales of 174.3 billion yuan, accounting for 30% of the entire soft drink market.



In the food circle, the competition in the bottled water market has been fierce. Not only are there many brands of bottled water, but the investment in product operation and the requirements of the team are equally strict. However, even the fiercely competitive market potential still attracts more companies to join.



1

Yili cross-border mineral water industry



Recently, the dairy giant Ely has thrown a "blockbuster", high-profile launch of its own mineral water brand - "inikin Icara spring", a strong announcement of the cross-border mineral water industry! It is understood that "inikin Yizhengquanquan" is committed to becoming a high-quality mineral water brand with excellent quality. It is the perfect inheritance of Yili's high-quality genes, which is bound to set off a wave in the domestic bottled water market that seems to be unpredictable. The quality of mineral water will also be redefined by Yili.



As early as the end of 2018, Yili announced an investment of 744 million yuan to build the Jilin Changbai Mountain mineral water project and started the first shot in the mineral water market. In August 2019, Yili completed the acquisition of a large-scale mineral water company in Aershan, Inner Mongolia; in September 2019, the Ilyantu mineral water project started.




2

Want Want pushes new products into the bottled water market



In July this year, Want Want announced that it is ready to launch a new bottled water product - Want Want cool white, product specifications of 500ml, choose to start in the Want Want vending machine channel.







It is reported that this is a cooked water product using HTP high temperature sterilization technology to minimize the process of household boiling water. The cooked water is easy to be absorbed by the human body, and the stomach health is not suitable for daily drinking.



As a latecomer to the bottled water industry, Want Want and other companies have different channel layouts. This new product launch is preferred for self-operated vending machine channel sales. Since the layout in 2017, Want Want vending machines have been running in small steps. So far, more than 4,000 sets have been laid, covering schools, factories, parks, hospitals, office buildings, amusement areas and other channels.



In recent years, Wangwang has not only launched a large number of peripheral products, but also continuously expanded its IP potential. However, in the main food industry, Want Want not only launched bottled water, but also launched a brand of pure milk and functional drinks. On the road of diversified development, Want Want is getting wider and wider.



3

Jin Mailang "cooked water" cool white open



In the field of “cooked water”, Jinmailang first opened the river, and in May 2016, it launched “red water” and opened a new category of “cooked water”. The product uses UHT125 °C ultra-boiling boiling sterilization technology, and achieve ultra-clean cooling filling.







A pot of cool white, a rustic package, surprised the industry but also full of doubts. In 2017, cool white sales of 250 million yuan. In 2018, Cool White opened sales of 1.25 billion yuan. The data shows that Cool White has achieved strong growth in the past two years. A few days ago, Fan Xianguo publicly stated: "Liangbaikai will achieve annual sales of 2 billion yuan in 2019. In the next 10 years, cool white is a super-single item of 10 billion."



4

Hao Liyou first promotes high-end bottled water



Speaking of good friends, I believe many people are familiar. One of the four largest food companies in Korea has been rooted in China for 23 years. It mainly has brands such as “yolk pie”, “yeah! potato” and “a lot of fish”. Recently, this company with leisure snacks as its main business will enter the bottled water market.

 

According to relevant media reports in South Korea, Hao Liyou announced on September 23 that the company will launch the high-end mineral water brand “Haoliyou Jeju Lava Water” next month. The product packaging is available in 530 ml and 2 liter.

 

According to a related person from Hao Liyou, “Jeju lava water is also planned to enter the high-end mineral water market in China after its launch in the Korean market.” “This product is made from natural filtered, clean and mineral-rich lava water from Jeju basalt.”

 

It is understood that Hao Liyou spent 2.124 billion won in November 2016 to acquire a 60% stake in Jeju Island's local company "Holly Friends Jeju Lava Water". From July to August this year, Holly Holdings held a trademark for the image of Jeju Island from the Patent Office to prepare for the launch of lava water.



5

Tsingtao beer sells water



Not the previous big bucket of water, this time the green beer is selling bottled water. It is understood that in the past two years, domestic gas-containing soda water has entered a period of rapid expansion, and the huge market prospects have also attracted giants to enter the market.



In July this year, Tsingtao Brewery announced the official launch of its prince seaweed soda.







This time, Tsingtao Brewery cross-border into the soda category, with the brand strength and consumer base of Tsingtao Brewery, break through the original product pattern, layout new industries, and open up a broader consumer market.



6

Jinsha River into the pure water market



Who is Jinshahe? It is the familiar giant noodle, and it is also a fresh water rookie that you are not familiar with.



According to the food board report, in March this year, Hebei Jinshahe Face Industry Group swept the beverage field and established Hebei Jinshahe Beverage Co., Ltd. with a registered capital of 39 million yuan. The business scope includes packaging drinking water, protein drinks, tea drinks and so on. According to reports, Jinshahe beverage project has a total investment of 130 million yuan, 1 production line workshop, 1 finished product warehouse, 339 sets of production equipment, and an annual output of bottled drinking pure water up to 365,000 tons.







In August 2019, the Zhoukou City Grain and Material Reserve Bureau of Henan Province and the Jinsha River Face Industry Group reached a cooperation agreement to build a framework agreement for the Lingang Grain Industrial Park. The Jinsha River Noodle Industry Group plans to treat 7,200 tons of wheat and corn in the construction of the Zhoukou Lingang Grain Industrial Park. 1000 tons, Nissan noodles 2000 tons, bottled drinking water 2000 tons of production line project, the estimated total investment of 1.6 billion yuan, it can be seen that entering the pure water market is not a "small fight."



For many companies to enter the bottled water market, China food industry analyst Zhu Danpeng said that the health industry is prevalent, the future drinking water industry will continue to grow, and the growth of mineral water category will be better than other water categories.