Zenith Global West Europe Water Dispense Report 2022 by Zenith Global

Zenith Global Report 2022

West Europe Water Dispense Market Report

Copyright All copyright in this document is reserved. Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith Global Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information. Important notice on distribution This report should not be quoted, referred to or transmitted to another party, in whole or in part, with out the prior written consent of Zenith Global Ltd. Should you desire to release a copy of this report to another party for information purposes, we request you and the requesting party to indemnify Zenith Global Ltd from any liability related to the report distribution. Such readers however will not be considered “users” of this report.

Contents Section 1. Introduction and scope 2. Water dispense regional market overview 2.1 Market totals 2.2 Price structure and revenue indicators 2.3 Industry structure 2.4 Forecast 3. Bottled water dispense analysis 4. Point of use analysis 5. Integrated tap systems analysis

Page

Contents Section 6. Country reports Austria Belgium France Germany Italy Norway Spain Switzerland UK

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Contents Section 7. Data reports Denmark Finland Greece Ireland Netherlands Portugal Sweden 8. Appendix

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Introduction and scope

Introduction and scope Introduction

Scope

Zenith Global has actively reported on the European water dispense market for nearly thirty years, providing unparalleled insights into the market’s dynamics and evolution.

The 2022 report for West Europe 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 revised the report in 2019 to include specific coverage on integrated tap systems alongside more traditional bottle free point of use and bottle fed dispense units. The reports also now feature 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 West Europe Water Dispense Market Report 2022 contains text, charts and tables providing analysis of recent market developments and innovations and forecasts to 2026. This report represents exceptional coverage of the British water dispense market and we hope that you find it useful in 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. The West Europe Water Dispense Market Report covers Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK. In addition to this report, regional coverage is also available for East Europe and the US.

Christina Avison Associate Director - Commercial

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 ultra violet (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 regional market overview

Water dispense regional market overview 2.1 Market totals

West Europe

Market totals - Water dispense market evolution • Commentary

M A S 2016 ITS units

2017

2018

POU units

€ million

Installed units

Water dispense market evolution, 2016-21

E L P

2019 BWD units

2020

2021

Total revenue (€ mln)

West Europe

Market totals - Water dispense market evolution 2016 Bottled water dispense (BWD) units % growth Million litres % growth Point of use (POU) units % growth Integrated tap systems (ITS) units % growth Total units % growth BWD % share POU % share ITS % share

2017

2018

2019

2020

2021

16-21 CAGR

16-21 growth

West Europe

Market totals - Water dispense unit share

Installed units

Water dispense market evolution, 2016-21

S 2016

2017

2018 ITS units

E L P M A

2019 POU units

BWD units

2020

2021

West Europe

Market totals - Water dispense total unit volume by country 2016 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 16-21 CAGR

West Europe

Market totals - Water dispense unit share by country Water dispense share by country, 2021 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway

E L P M A

Portugal Spain Sweden Switzerland United Kingdom Bottled water dispense (BWD) units

Point of use (POU) units

Integrated tap systems (ITS) units

West Europe

Market totals - Regulatory environment • Commentary

Water dispense regional market overview 2.2 Price structure and revenue indicators

West Europe

Price structure and revenue indicators - Water dispense revenue evolution • Commentary

€ million

Water dispense revenue, 2016-21

M A S 2016

2017

2018

BWD revenue (€ mln) ITS revenue (€ mln)

E L P

2019

2020

POU revenue (€ mln) Total revenue (€ mln)

2021

West Europe

Price structure and revenue indicators - Average pricing Bottled water dispensers

2020

2021

• Commentary

2020

2021

• Commentary

2020

2021

Average monthly rental (€) Average 18.9l bottle price (€) Total revenue (€ mln) - revenue from rented units - revenue from bulk bottled water sales Point of use Average monthly rental (€) Average sales price per unit (€) Total revenue (€ mln) - revenue from rented units - revenue from sold units Integrated tap systems Average monthly rental (€) Average sales price per unit (€) Total revenue (€ mln) - revenue from rented units - revenue from sold units

•

Commentary

Water dispense regional market overview 2.3 Industry structure

West Europe

Industry structure - Mergers and acquisitions • Commentary

West Europe

Industry structure - Key acquisitions Key acquisitions Buyer

Target

Country/Region

Date

West Europe

Industry structure - Bottled water dispense • Commentary

West Europe

Industry structure - Bottled water dispense top four groups Units in December (1) Group 1 FR

Company, France

Company, UK

Company, Spain

Company, Germany

Company, Italy

Company, Portugal

Company, Sweden

(2) Group 2 NO

Company, Norway

Company, Ireland

Company, Spain

Company, Belgium

Company, Italy

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

West Europe

Industry structure - Bottled water dispense top 25 national companies Rank

Country

Company

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2016

2017

2018

2019

2020

2021

% share 2021

West Europe

Industry structure - Bottled water dispense top 25 national companies Rank

Country

Company

16 17 18 19 20 21 22 23 24 25 Top 10 % share Top 25 % share Others West Europe

2016

2017

2018

2019

2020

2021

% share 2021

West Europe

Industry structure - Bulk bottled water • Commentary

West Europe

Industry structure - Bulk bottled water top 25 national suppliers by volume Rank

Country

Company

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2016

2017

2018

2019

2020

2021

% share 2021

West Europe

Industry structure - Bulk bottled water top 25 national suppliers by volume Rank

Country

Company

16 17 18 19 20 21 22 23 24 25 Top 10 % share Top 25 % share Others West Europe

2016

2017

2018

2019

2020

2021

% share 2021

West Europe

Industry structure - Point of use • Commentary

West Europe

Industry structure - Point of use top five groups Units in December (1) Group 1 FR

Company, France

Company, UK

Company, Spain

Company, Germany

Company, Italy

Company, Portugal

Company, Sweden

(2) Group 2 NO

Company, Norway

Company, Ireland

Company, Spain

Company, Belgium

Company, Italy

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

West Europe

Industry structure - Point of use top 25 national companies Rank

Country

Company

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2016

2017

2018

2019

2020

2021

% share 2021

West Europe

Industry structure - Point of use top 25 national companies Rank

Country

Company

16 17 18 19 20 21 22 23 24 25 Top 10 % share Top 25 % share Others West Europe 34

2016

2017

2018

2019

2020

2021

% share 2021

West Europe

Industry structure - Integrated tap systems • Commentary

West Europe

Industry structure - Integrated tap systems top three groups Units in December (1) Group 1 FR

Company, France

Company, UK

Company, Spain

Company, Germany

Company, Italy

Company, Portugal

Company, Sweden

(2) Group 2 NO

Company, Norway

Company, Ireland

Company, Spain

Company, Belgium

Company, Italy

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

West Europe

Industry structure - Integrated tap systems top 25 national companies Rank

Country

Company

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2016

2017

2018

2019

2020

2021

% share 2021

West Europe

Industry structure - Integrated tap systems top 25 national companies Rank

Country

Company

16 17 18 19 20 21 22 23 24 25 Top 10 % share Top 25 % share Others West Europe 38

2016

2017

2018

2019

2020

2021

% share 2021

West Europe

Industry structure - Innovation and disruption Touchless features • Commentary

Inclusive digital technology • Commentary

New hydration stations network • Commentary

Flavoured water dispense • Commentary

Countertop units help to save space in cramped kitchens • Commentary

Zip Hydratap Wave

West Europe

Industry structure - Innovation and disruption Consumers demand greater choice • Commentary

Subscriptions and sharing costs • Commentary

At home water dispense disruptors: Packaged water • Commentary

At home water dispense disruptors: Filters • Commentary

Zip Hydratap Wave

Water dispense regional market overview 2.4 Forecast

West Europe

Forecast - Water dispense market forecast • Commentary

West Europe

Forecast - Water dispense market forecast 2021 Bottled water dispense (BWD) units % growth Million litres % growth Point of use (POU) units % growth Integrated tap systems (ITS) units % growth Total units % growth BWD % share POU % share ITS % share

2022f

2023f

2024f

2025f

2026f

21-26f CAGR

21-26f growth

West Europe

Forecast - Water dispense unit share

Installed units

Water dispense market forecast, 2021-26f

2021

2022f

E L P M A

2023f BWD units

2024f POU units

ITS units

2025f

2026f

West Europe

Forecast - Water dispense total unit volume by country 2021 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2022f

2023f

2024f

2025f

2026f

% share 2021

% share 2026f

% 21-26f CAGR

West Europe

Forecast - Water dispense unit share by country Water dispense share by country, 2026f Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway

E L P M A

Portugal Spain Sweden Switzerland United Kingdom Bottled water dispense (BWD) units

Point of use (POU) units

Integrated tap systems (ITS) units

West Europe

Forecast - Bottled water dispense units installed by country 2021 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2022f

2023f

2024f

2025f

2026f

% share 2021

% share 2026f

% 21-26f CAGR

West Europe

Forecast - Bottled water dispense volume by country (million litres) 2021 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2022f

2023f

2024f

2025f

2026f

% share 2021

% share 2026f

% 21-26f CAGR

West Europe

Forecast - Point of use units installed by country 2021 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2022f

2023f

2024f

2025f

2026f

% share 2021

% share 2026f

% 21-26f CAGR

West Europe

Forecast - Integrated tap systems units installed by country 2021 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2022f

2023f

2024f

2025f

2026f

% share 2021

% share 2026f

% 21-26f CAGR

West Europe

Forecast - Market developments Covid impact on the water dispense sector in West Europe: Year 2 of the pandemic in 2021 • Commentary

West Europe

Forecast - Units per capita Units per '000 people 2016 Bottled water dispense Point of use Integrated tap systems

• Commentary

2021

2026f

16-21 growth

21-26f growth

Bottled water dispense analysis

West Europe

Bottled water dispense - Market analysis Market drivers and dynamics

Bottled water dispense units, 2016-21

BWD installed units

• Commentary

M A S

2016

2017

2018

E L P

2019

2020

2021

West Europe

Bottled water dispense - Units installed by country 2016 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 16-21 CAGR

West Europe

Bottled water dispense - Volume analysis Market drivers and dynamics

Bottled water dispense volume, 2016-21

Million litres

• Commentary

M A S

2016

2017

2018

E L P

2019

2020

2021

West Europe

Bottled water dispense - Volume by country (million litres) 2016 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 16-21 CAGR

West Europe

Bottled water dispense - Market structure: Throughput • Commentary

Litres per dispense unit 2020 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2021

18.9l bottles per unit per month 2020

2021

West Europe

Bottled water dispense - Market structure: Cancellations • Commentary

2020 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2021

Point of use analysis

West Europe

Point of use - Market analysis Market drivers and dynamics

Point of use units, 2016-21

POU installed units

• Commentary

M A S

2016

2017

2018

E L P

2019

2020

2021

West Europe

Point of use - Units installed by country 2016 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 16-21 CAGR

Integrated tap systems analysis

West Europe

Integrated tap systems - Market analysis Market drivers and dynamics

Integrated tap systems units, 2016-21

ITS installed units

• Commentary

M A S

2016

2017

2018

E L P

2019

2020

2021

West Europe

Integrated tap systems - Units installed by country 2016 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Europe

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 16-21 CAGR

Country reports

Country reports [COUNTRY]

[COUNTRY]

Market overview - Water dispense market evolution • Commentary

M A S

Key acquisitions • Commentary

2016 ITS units

2017

2018

POU units

€ million

Installed units

Water dispense market evolution, 2016-21

E L P

2019 BWD units

2020

2021

Total revenue (€ mln)

[COUNTRY]

Market overview - Water dispense market evolution 2016 Bottled water dispense (BWD) units % growth Million litres % growth Point of use (POU) units % growth Integrated tap systems (ITS) units % growth Total units % growth BWD % share POU % share ITS % share

2017

2018

2019

2020

2021

16-21 CAGR

16-21 growth

[COUNTRY]

Market overview - Water dispense revenue evolution • Commentary

€ million

Water dispense revenue, 2016-21

M A S 2016

2017

2018

BWD revenue (€ mln) ITS revenue (€ mln)

E L P

2019

2020

POU revenue (€ mln) Total revenue (€ mln)

2021

[COUNTRY]

Market overview - Price structure and revenue indicators Bottled water dispensers

2020

2021

• Commentary

2020

2021

• Commentary

2020

2021

•

Commentary

[COUNTRY]

Market overview - Mode of commercialisation • Commentary

Bottled water dispense

• Commentary

Point of use

• Commentary

Integrated tap systems

[COUNTRY]

Market overview - PESTLE analysis

Political

Economic

Social

Technologic al

Legal

Environmen tal

Commentary

[COUNTRY]

Market overview - Forecast 2021 Bottled water dispense (BWD) units % growth Million litres % growth Point of use (POU) units % growth Integrated tap systems (ITS) units % growth Total units % growth BWD % share POU % share ITS % share

2022f

2023f

2024f

2025f

2026f

21-26f CAGR

21-26f growth

[COUNTRY]

Market overview - Forecast Water dispense market forecast

Future water consumption trends

• Commentary

[COUNTRY]

Market overview - Opportunities Units per '000 people 2016 Bottled water dispense Point of use Integrated tap systems

• Commentary

Opportunities • Commentary

2021

2026f

16-21 growth

21-26f growth

[COUNTRY]

Bottled water dispense - Market analysis Market drivers and dynamics

Bottled water dispense units, 2016-21

BWD installed units

• Commentary

M A S

2016

2017

2018

E L P

2019

2020

2021

[COUNTRY]

Bottled water dispense - Units installed by company Units in December Company 1 Company 2 Company 3

Others Total market

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

[COUNTRY]

Bottled water dispense - Volume analysis Market drivers and dynamics

Bottled water dispense volume, 2016-21

Million litres

• Commentary

M A S

2016

2017

2018

E L P

2019

2020

2021

[COUNTRY]

Bottled water dispense - Volume by company Million litres Company 1 Company 2 Company 3

Others Total market

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

[COUNTRY]

Bottled water dispense - Market structure Throughput Litres per dispense unit 18.9l bottles per dispense unit per month Throughput • Commentary

Cancellations • Commentary

Contract lengths • Commentary

2020

2021

Cancellations Quit rate %

2020

2021

[COUNTRY]

Bottled water dispense - Unit analysis Machine functionality • Commentary

BWD machine functionality, 2021

25%

M SA

E L P 50%

Chilled Chilled-hot Chilled-hot-boiling

25%

Still-sparkling functionality • Commentary

BWD still-sparkling functionality, 2021

M A S

50%

E L P 50%

Still Still + sparkling

[COUNTRY]

Bottled water dispense - Channel analysis • Commentary

BWD channel distribution, 2021

13%

E L P

13%

M A S 13%

13%

Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic

[COUNTRY]

Point of use - Market analysis Market drivers and dynamics

Point of use units, 2016-21

POU installed units

• Commentary

M A S

2016

2017

2018

E L P

2019

2020

2021

[COUNTRY]

Point of use - Units installed by company Units in December Company 1 Company 2 Company 3

Others Total market

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

[COUNTRY]

Point of use - Market structure Conversion • Commentary

BWD to POU conversions

Units added

2020

Replacement POU (New)

2021

2020

2021

Replacement rate % Number of units

Filtration method

POU water types, 2021

• Commentary

M A S

50.0%

E L P 50.0%

Filtered Purified

[COUNTRY]

Point of use - Unit analysis Machine functionality • Commentary

POU machine functionality, 2021

25%

M SA

E L P 50%

Chilled Chilled-hot Chilled-hot-boiling

25%

Still-sparkling functionality • Commentary

POU still-sparkling functionality, 2021

M A S

50%

E L P 50%

Still Still + sparkling

[COUNTRY]

Point of use - Channel analysis • Commentary

POU channel distribution, 2021

13%

E L P

13%

M A S 13%

13%

Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic

[COUNTRY]

Integrated tap systems - Market analysis Market drivers and dynamics

Integrated tap systems units, 2016-21

ITS installed units

• Commentary

M A S

2016

2017

2018

E L P

2019

2020

2021

[COUNTRY]

Integrated tap systems - Units installed by company Units in December Company 1 Company 2 Company 3

Others Total market

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

[COUNTRY]

Integrated tap systems - Unit analysis Machine functionality • Commentary

ITS machine functionality, 2021

25%

M SA

E L P 50%

Chilled Chilled-hot Chilled-hot-boiling

25%

Still-sparkling functionality • Commentary

ITS still-sparkling functionality, 2021

M A S

50%

E L P 50%

Still Still + sparkling

[COUNTRY]

Integrated tap systems - Channel analysis • Commentary

ITS channel distribution, 2021

13%

E L P

13%

M A S 13%

13%

Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic

Data reports

Data reports [COUNTRY]

[COUNTRY]

Market overview - Water dispense market evolution

M A S

2016

2017 ITS units

2018 POU units

€ million

Installed units

Water dispense market evolution, 2016-21

E L P

2019 BWD units

2020

2021 Total revenue (€ mln)

[COUNTRY]

2017

2018

2019

2020

2021

16-21 CAGR

16-21 growth

[COUNTRY]

Market overview - Price structure and revenue evolution Bottled water dispensers

2020

2021

2020

2021

Water dispense revenue, 2016-21

Average monthly rental (€) Average 18.9l bottle price (€) Total revenue (€ mln) - revenue from rented units

Point of use Average monthly rental (€)

€ million

- revenue from bulk bottled water sales

Average sales price per unit (€)

M A S

Total revenue (€ mln) - revenue from rented units - revenue from sold units Integrated tap systems

2020

E L P

2021

Average monthly rental (€) Average sales price per unit (€) Total revenue (€ mln)

2016

2017

2018

2019

2020

- revenue from rented units - revenue from sold units

BWD revenue (€ mln) ITS revenue (€ mln)

POU revenue (€ mln) Total revenue (€ mln)

2021

[COUNTRY]

Market overview - Units per capita evolution Units per '000 people 2016 Bottled water dispense Point of use Integrated tap systems

2021

2026f

16-21 growth

21-26f growth

[COUNTRY]

2022f

2023f

2024f

2025f

2026f

21-26f CAGR

21-26f growth

[COUNTRY]

Bottled water dispense - Market analysis

S 2016

2017

M A 2018

Bottled water dispense volume, 2016-21

E L P 2019

2020

Million litres

BWD installed units

Bottled water dispense units, 2016-21

2021

Throughput

M A S 2016

2020

2017

2018

2021

Litres per dispense unit 18.9l bottles per dispense unit per month Cancellations Quit rate %

100

2020

2021

E L P 2019

2020

2021

[COUNTRY]

Bottled water dispense - Units installed by company Units in December Company 1 Company 2 Company 3

Others Total market

101

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

[COUNTRY]

Bottled water dispense - Volume by company Million litres Company 1 Company 2 Company 3

Others Total market

102

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

[COUNTRY]

Bottled water dispense - Unit analysis BWD machine functionality, 2021

BWD channel distribution, 2021

25%

13%

E L P

13%

M A S 13%

13%

Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic

M SA

BWD still-sparkling functionality, 2021

13%

M A S

50%

Chilled Chilled-hot Chilled-hot-boiling

25%

50%

103

E L P

E L P 50%

Still Still + sparkling

[COUNTRY]

Point of use - Market analysis Point of use units, 2016-21

BWD to POU conversions

Units added

2020

Replacement POU (New)

2021

2020

2021

Replacement rate %

POU installed units

Number of units

M A S

E L P POU water types, 2021

M SA

50.0%

2016

104

2017

2018

2019

2020

2021

E L P 50.0%

Filtered Purified

[COUNTRY]

Point of use - Units installed by company Units in December Company 1 Company 2 Company 3

Others Total market

105

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

[COUNTRY]

Point of use - Unit analysis POU machine functionality, 2021

POU channel distribution, 2021

25%

13%

E L P

13%

M A S 13%

13%

Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic

M SA

POU still-sparkling functionality, 2021

13%

M A S

50%

Chilled Chilled-hot Chilled-hot-boiling

25%

50%

106

E L P

E L P 50%

Still Still + sparkling

[COUNTRY]

Integrated tap systems - Market analysis

ITS installed units

Integrated tap systems units, 2016-21

M SA

2016

107

2017

2018

E L P

2019

2020

2021

[COUNTRY]

Integrated tap systems - Units installed by company Units in December Company 1 Company 2 Company 3

Others Total market

108

2016

2017

2018

2019

2020

2021

% share 2020

% share 2021

% 21-20

[COUNTRY]

Integrated tap systems - Unit analysis ITS machine functionality, 2021

ITS channel distribution, 2021

25%

13%

E L P

13%

M A S 13%

13%

Workplace HoReCa Healthcare Education Retail Transport hubs Leisure Domestic

M SA

ITS still-sparkling functionality, 2021

13%

M A S

50%

Chilled Chilled-hot Chilled-hot-boiling

25%

50%

109

E L P

E L P 50%

Still Still + sparkling

110

Appendix Glossary, acronyms abbreviations

and

Appendix Glossary

• Bottled water: All water sold in containers for human consumption. • Bulk bottled water: Bottled water sold in containers larger than 10 litres in size. • Bottler: Bottlers supply water to distributors in tankers or bottles. They have no dispense units of their own. • Bottler-distributors: Bottler-distributors have their own water source, fill bottles under their own brand, install their own dispense units and run their own distribution service. They may also fill bottles under contract for other distributors, either under their own brand or under distributor brands. • BWD conversions: Refers to the number of units converted from BWD to either POU or ITS. • Cancellations: Sometimes also called churn or quit rate. The number of installed units that are lost in the year, removing the unit altogether. • Carbon filtration: Cartridges in carbon filters naturally absorb organic compounds and chlorine by-products from water. The technique is often used to remove objectionable taste and odour from water. • Distributor: Distributors service their own machines using water supplied by bottlers or bottler-distributors. The water may be marketed under the bottler’s, bottler-distributor’s or the distributor’s brand name. This report measures the overall market for units installed in use in each calendar year by distributor until is it replaced or removed from the market. The ‘distributor’ shall be considered the company at the end of the chain, in direct contact with the end user (or with a facility management company directly supplying the end-user). Manufacturer units should only be counted when the manufacturer is also the distributor to the end client or operates through an exclusive dealership or franchise where manufacturer branding remains intact and only when the manufacturer operates under a combined direct and exclusive distributor network. If market presence is only through exclusive distributors, the units should be counted towards the distributor’s numbers. If a manufacturer’s unit is placed in field by another party and not by exclusive partnership (indirect sale), the unit should be counted under that other party if named, or captured under ‘others’. If a unit is placed in field by Company X, but after the initial contract expires continues to be serviced by Company Y, the unit is transferred to Company Y, adding one unit in that given year to its total, and subtracting one active unit from Company X, compared to the previous year. • Indirect sales: Sales that are not to an end-customer or facility manager are out of scope under distributor sales. • Packaged water: Bottled water that is not distributed for consumption via water coolers. • Pumps/ceramics (non-powered/non-installed systems) for formats above 10 litres are included at the topline for East Europe, where they have a significant market share.

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Appendix Glossary

• Purified water: Mains or other water subjected to further processing and treatment and bottled in accordance with EC Directive 80/778/EEC on Water for Human Consumption. Sometimes called ‘drinking water’ or ‘table water’. It may come from more than one source or not from a single underground source. It may include the public water supply or be transported from the source to the bottling plant. Bottling companies may carry out filtration and treatment processes on the water to amend its constituents before the water is distributed for sale. Some companies may also add mineral salts and carbon dioxide to their water. • Rented: A unit is considered rented under any kind of traditional rental (monthly payments), subscription or lease agreement/financing schemes, even if the lease fee is arranged through an intermediary party. Such units will count towards the unit total of the distributor company (the company holding the end-customer on contract) under such circumstances. BWD units supplied for free that are covered by a subscription contract of minimum monthly bottle orders or ad hoc water purchases are also considered units under rental, as the unit is subject to being returned to the distributor at the end of its life or contract, even if the unit itself does not attract a rental fee for placement in field. Rental contracts generally also include services. • Reverse osmosis: A water treatment process that filters out most inorganic chemicals such as salts, metals and minerals as well as micro-organisms and many (but not all) organic compounds. It is sometimes seen as a controversial filtration method as it frequently discards a high percentage of water along with the contaminants. • Service/maintenance: Including replacement filters, other spare parts, maintenance, sanitisation. These may entail regular payment as part of a contractual rental and service package attracting recurring revenue or a one-off separate payment. • Sold: A unit is considered sold when 100% of the purchase price is paid at the point of sale or prior to installation. There is no obligation to return the unit at the end of its life. Units may be purchased online or offline, through direct retail sales to an end-customer or facility manager. Service and maintenance contracts may still be attached to that unit, but this is purchased separately. • Throughput: The volume of bottled used per dispenser. • UV: UV filtration systems inactivate bacteria, viruses and micro-organisms. • Water treatment method (for POU and ITS): Filtration or purification (RO, purifying UV, Ozonation, hollow fibre membrane)

112

Appendix

Acronyms and abbreviations ...

Negligible, less than 0.05

Forecast

Not available, not applicable

B2B

Business-to-Business

BiB

Bag-in-box

BPA

Bisphenol A

BWCA British Water Cooler Association BWD

Bottled water dispenser

CAGR Compound annual growth rate EC

European Commission

EDWCA

European Drinking Water Cooler Association

European Union

HOD

Home and office delivery

IMF

International Monetary Fund

ITS

Integrated tap system

Non returnable packaging

OOH

Out-of-home

PET

Polyethylene terephthalate

POU

Point of use

Returnable packaging

Reverse osmosis

113

Appendix

Acronyms and abbreviations SME

Small-and medium-sized enterprise

SSTI

Self-sanitising technology system

UNESCO

United Nations Educational, Scientific and Cultural Organization

UNESDA

Union of European Beverages Associations

UTS

Under the sink

Ultra violet

VAT

Value-added tax

Watercoolers Europe

WHA

The Water Dispenser & Hydration Association

WRAP Waste Resources Action Programme WRAS Water Regulations Advisory Scheme

114

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