Zenith Global US Water Dispense Report 2021 by Zenith Global

Zenith Global Report 2021

US Water Dispense Market Report

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Contents Section 1. Introduction and scope 2. Water dispense market overview 3. Water dispense market forecast 4. Bottled water dispense analysis, insights and opportunities 5. Point of use water dispense analysis, insights and opportunities 6. Integrated tap system analysis, insights and opportunities

Page

Introduction and scope

Introduction and scope Introduction

Scope

Zenith Global has actively reported on the US water dispense market since 2008, providing unparalleled insights into the market’s dynamics and evolution.

The 2021 report for the US covers water dispense units where the primary function is the dispense of filtered/purified water. Specifically bottled water dispense units, mains fed point of use dispensers and multifunctional integrated tap systems dispensing cold, hot, boiling still and sparkling water are within the scope of this report. The addition, since 2019, of integrated tap systems represents the most significant revision of scope in the last decade and was revised in collaboration with industry leading companies to reflect the evolution and innovation of this market.

To reflect the evolution of water dispense, Zenith Global revised the report in 2019 to include specific coverage on integrated tap systems alongside more traditional point of use and bottle fed dispense units. The report, now in its 8th edition, also features increased focus on market insights and opportunities with channel-specific commentary. In producing our reports, we aim to contact every significant company active in the appropriate sector and to provide as complete a picture as possible at a price accessible to any business with a serious commercial interest. We are particularly grateful for the help we have received from these companies in compiling this report. Where direct company figures are unavailable, best estimates have been provided. The US Water Dispense Report 2021 contains text, charts and tables providing analysis of recent market developments and innovations and forecasts to 2025. This report represents exceptional coverage of the US water dispense market for your business planning. As our research is updated on a regular basis, we always welcome any comments or suggestions about possible improvements.

Whilst beverage and soda dispense units can dispense water, this is not their primary purpose and as such these “hybrid” machines are referenced, where applicable, in the market innovation section but are not quantified in the report. Equally, vending machines and water boilers are not in the scope of this report. In addition to the water dispense report for the US, reports are also available for West and East Europe.

Duncan Lynch Reports Manager

Definitions Unit types Water dispense: freestanding, countertop or under the sink/counter water dispense units where the primary function is the dispense of filtered or purified water. Powered units dispensing ambient, cold, hot, boiling still and/or sparkling water are within the scope of this report as defined further below. Bottled water dispense units (BWD): A unit that dispenses bottled mineral, spring or purified water that can be ambient, cold or hot, depending on machine functionality. Most commonly, water bottles or pouches are delivered direct to the customer by a distributor and empty bottles taken away. New bottles and pouches are either placed underneath the unit (bottom fed) or inverted and placed on top of the machine (top fed). For top fed coolers, a feed tube spike from the machine penetrates the watertight cap in the bottle and opens the valve within the cap, thereby allowing water to flow into the machine (or valve where just a pump is used). The same process is used with bottom fed water coolers with a pump to transfer the water to the point of dispense. The unit can be installed under a rental, lease or service agreement (considered “rental”) or purchased outright by the customer (considered “sold”, with or without a service contract). Bottle fed machines can be freestanding or countertop and are suitable for larger bottle or pouch formats greater than 10 litres, which are therefore larger than those distributed in small packaged formats through retail outlets. Bottle-free Point of use units (POU): A device that is plumbed into a mains fed water supply, improving the quality of water via filtration or purification methods. These systems may utilise carbon filtration, combined/staged filtration, reverse osmosis (RO), Ozonation, and/or ultraviolet (UV) technology to treat the water. Dispensed water can be ambient, cold, hot or sparkling, depending on machine functionality. Such machines have drip trays and some have drainage systems. Machines can be available as freestanding or countertop units. Large volume POU bottle fillers (BFS) are also included if they offer filtration/purification. Bottle-free Integrated tap systems (ITS): A mains fed water system that filters or purifies mains water, adds functionality (hot/boiling/sparkling) and directs the water to the tap. Sometimes also called multifunctional taps. These systems may utilise carbon filtration, combined/staged filtration, reverse osmosis, Ozonation, and/or UV technology to treat the water. Dispensed water can be ambient, cold, hot, plus boiling or at various sparkling levels, depending on machine functionality. Three-way/mixer taps (dispensing cold, hot and filtered water only) are out of scope. The units are placed either under the sink or under the counter and are often referred to as ‘under counter’ or ‘under sink’ systems. One unit in field is considered to include both the under sink unit and the tap attached. Out of scope: Units where water is dispensed but this is not their primary purpose: e.g. beverage and soda dispense units; automated vending machines that provide ready to drink hot and cold beverages, but whose primary purpose is not water vending; Flavoured water dispensers; Units where un-filtered or un-purified water is dispensed, whether chilled or ambient e.g. water fountains, domestic or commercial water filters for taps without added functionality; Water boilers where the primary function is to boil water for making hot drinks, but not chilled dispensed water; Whole home domestic POE filtration systems; Fridge dispensers, embedded filters and faucet-mounts; Non-installed dispense units, including jug filters or pitchers and soda makers.

Definitions Channels Workplace:

Private and Public sector offices and workplaces including factories, municipal, government, armed forces, police, fire, prisons.

HoReCa:

Hotels, Restaurants and Catering, including bars, pubs, nightclubs, foodservice, cafés.

Healthcare:

Public and Private sector medical centres, hospitals, care homes, nursing homes.

Education:

Public and Private sector schools, sixth form colleges, universities, nurseries.

Retail: Shops and showrooms. Transport hubs: Airports, railway stations, coach/bus stations. Leisure:

Leisure centres, gyms, sports centres, swimming pools, activity centres.

Domestic:

Residential homes (B2C).

Water dispense market overview

Water dispense market overview Market evolution • Commentary

M A S

2015 ITS units

2016

2017

POU units

E L P

2018 BWD units

$ million

Installed units

Water dispense market evolution, 2015-20

2019

2020

Total revenue ($ mln)

Water dispense market overview Market evolution 2015 Bottled water dispense (BWD) units % growth Units per '000 people Million liters % growth Point of use (POU) units % growth Units per '000 people Integrated tap systems (ITS) units % growth Units per '000 people Total units % growth BWD % share POU % share ITS % share

2016

2017

2018

2019

2020

15-20 CAGR

15-20 growth

Water dispense market overview Revenue evolution • Commentary

$ million

Water dispense revenue, 2015-20

M A S 2015

2016

2017

BWD revenue ($ mln) ITS revenue ($ mln)

E L P

2018

2019

POU revenue ($ mln) Total revenue ($ mln)

2020

Water dispense market overview Price structure and revenue indicators Bottled water dispensers

2019

2020

2019

2020

2019

2020

Average monthly rental (US$) Average sales price per unit (US$) Average 5 gallon bottle price (US$) Total revenue (US$ mln) - revenue from rented units - revenue from sold units - revenue from BWD sales Point of use Average monthly rental (US$) Average sales price per unit (US$) Total revenue (US$ mln) - revenue from rented units - revenue from sold units Integrated tap systems Average monthly rental (US$) Average sales price per unit (US$) Total revenue (US$ mln) - revenue from rented units - revenue from sold units 12

• Commentary

Water dispense market overview Key acquisitions and market moves • Commentary

Water dispense market overview Key acquisitions and market moves Key acquisitions Buyer

Target

Type

Date

Water dispense market overview Innovation and disruption • Commentary

Water dispense market overview PESTLE analysis

Political

Economic

Social

Technologic al

Legal

Environmen tal

Water dispense market overview Modes of commercialisation Water dispense type

Mode of commercialisation • Commentary

Bottled water dispense Bottled water dispense

•

Commentary

•

Commentary

Point of use

Integrated tap systems

Commentary

Water dispense market forecast

Water dispense market forecast Overview • Commentary

Water dispense market forecast Market forecast 2020 Bottled water dispense (BWD) units % growth Units per '000 people Million liters % growth Point of use (POU) units % growth Units per '000 people Integrated tap systems (ITS) units % growth Units per '000 people Total units % growth BWD % share POU % share ITS % share

2021f

2022f

2023f

2024f

2025f

20-25f CAGR

20-25f growth

Water dispense market forecast Market forecast - trends and factors breakdown Sustainability

Hybrid working

• Commentary

COVID-19 and technology

Water consumption

•

• Commentary

Commentary

Bottled water dispense analysis, insights and opportunities

Bottled water dispense analysis, insights and opportunities Bottled water dispense - Market analysis Market drivers and dynamics

Bottled water dispense units, 2015-20

BWD installed units

• Commentary

2015

2016

M A

2017

E L P

2018

2019

2020

Bottled water dispense analysis, insights and opportunities Units by company Units in December Company 1 Company 2 Company 3

Others Total market

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

Bottled water dispense analysis, insights and opportunities Units rented by company Units in December Company 1 Company 2 Company 3

Others Total market

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

Bottled water dispense analysis, insights and opportunities Units sold by company Units in December Company 1 Company 2 Company 3

Others Total market

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

Bottled water dispense analysis, insights and opportunities Bottled water dispense - Volume analysis Market drivers and dynamics

Bottled water dispense volume, 2015-20

Million liters

• Commentary

M A S

2015

2016

2017

E L P

2018

2019

2020

Bottled water dispense analysis, insights and opportunities Volume by company Million liters Company 1 Company 2 Company 3

Others Total market

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

Bottled water dispense analysis, insights and opportunities Market structure Throughput Liters per dispense unit 5 gallon bottles per unit per month Throughput • Commentary

Cancellations • Commentary

Contract lengths • Commentary

2019

2020

Cancellations Quit rate %

2019

2020

Bottled water dispense analysis, insights and opportunities Unit analysis Machine functionality • Commentary

BWD machine functionality, 2020

P M SA LE

25.00%

50.00%

Chilled Chilled-hot Chilled-hot-boiling

25.00%

Still-sparkling functionality •

Commentary

BWD still-sparkling functionality, 2020

P M SA LE

33.00%

34.00%

33.00%

Still Sparkling Still + sparkling

Bottled water dispense analysis, insights and opportunities Channel analysis • Commentary

BWD channel distribution, 2020

12.50%

P M A S LE 12.50%

12.50%

Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic

Point of use analysis, insights and opportunities

Point of use analysis, insights and opportunities Point of use - Market analysis Market drivers and dynamics

Point of use units, 2015-20

POU installed units

• Commentary

M A S

2015

2016

2017

E L P

2018

2019

2020

Point of use analysis, insights and opportunities Units by company Units in December Company 1 Company 2 Company 3

Others Total market

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

Point of use analysis, insights and opportunities Units rented by company Units in December Company 1 Company 2 Company 3

Others Total market

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

Point of use analysis, insights and opportunities Units sold by company Units in December Company 1 Company 2 Company 3

Others Total market

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

Point of use analysis, insights and opportunities Point of use - Market structure Conversion • Commentary

Units added

BWD to POU conversions 2019

2020

Replacement POU (New) 2019

2020

Replacement rate % Number of units

Filtration method •

POU water types, 2020

Commentary

P M SA LE

50.00%

Filtered Purified

Point of use analysis, insights and opportunities Unit analysis Machine functionality • Commentary

POU machine functionality, 2020

P M SA LE

25.00%

50.00%

Chilled Chilled-hot Chilled-hot-boiling

25.00%

Still-sparkling functionality •

Commentary

POU still-sparkling functionality, 2020

P M SA LE

33.00%

34.00%

33.00%

Still Sparkling Still + sparkling

Point of use analysis, insights and opportunities Channel analysis • Commentary

POU channel distribution, 2020

12.50%

P M A S LE 12.50%

12.50%

Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic

Integrated tap systems analysis, insights and opportunities

Integrated tap systems analysis, insights and opportunities Integrated tap systems - Market analysis Market drivers and dynamics

Integrated tap systems units, 2015-20

ITS installed units

• Commentary

M A S

2015

2016

2017

E L P

2018

2019

2020

Integrated tap systems analysis, insights and opportunities Units by company Units in December Company 1 Company 2 Company 3

Others Total market

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

Integrated tap systems analysis, insights and opportunities Units rented by company Units in December Company 1 Company 2 Company 3

Others Total market

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

Integrated tap systems analysis, insights and opportunities Units sold by company Units in December Company 1 Company 2 Company 3

Others Total market

2015

2016

2017

2018

2019

2020

% share 2019

% share 2020

% 20-19

Integrated tap systems analysis, insights and opportunities Unit analysis Machine functionality • Commentary

ITS machine functionality, 2020

P M SA LE

25.00%

50.00%

Chilled Chilled-hot Chilled-hot-boiling

25.00%

Still-sparkling functionality •

Commentary

ITS still-sparkling functionality, 2020

P M SA LE

33.00%

34.00%

33.00%

Still Sparkling Still + sparkling

Integrated tap systems analysis, insights and opportunities Channel analysis • Commentary

ITS channel distribution, 2020

12.50%

P M A S LE 12.50%

12.50%

Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic

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