As the demand for clean drinking water has raised among Vietnamese consumers in the years, the water bottle market in Vietnam has experienced significant growth. With the surge in tourism and outdoor activities, portable water bottles have become a necessity for many Vietnamese consumers who are always on the go
The market is highly competitive with a wide range of local and international players offering various types of water bottles, including plastic, glass, and stainless steel. Generally speaking, the water bottle market in Vietnam presents a significant opportunity for businesses looking to tap into the growing demand for clean drinking water and sustainable products. Let’s take a look at the overview of this market!
I. Market Size and Growth
According to a report by Euromonitor, the packaged water market in Vietnam was valued at US $1.7 billion in 2020, with a compound annual growth rate (CAGR) of 5.2% between 2015 and 2020. This growth is expected to continue, with a CAGR of 5.1% forecast between 2020 and 2025.
Vietnam’s bottled waters market can be classified based on product type, packaging material (pack size), origin, distribution channel, and region. Still, bottled water was the dominant segment of the market in 2019, with a share of 85.31%. The trend is expected continue for five more years. The segment’s growth can be attributed to the growing demand for safe, clean drinking water.
There are various types of water bottles available on the market, catering to the different needs and preferences of consumers. Some of the common types of water bottles are:
- Plastic water bottles: These are the most commonly used water bottles in Vietnam. They are lightweight, durable, and come in different shapes and sizes. However, there are growing concerns about their impact on the environment.
- Stainless steel water bottles: These are popular among consumers who prefer a more durable and eco-friendly option. They are resistant to corrosion and do not retain flavors or odors.
- Glass water bottles: Glass water bottles are another eco-friendly option that is gaining popularity among consumers in Vietnam. They are easy to clean and do not affect the taste of the water. However, they are fragile and not as durable as other options
However, Polyethylene Terephthalate, (PET), or Polypropylene, is still the most widely used packaging material in Vietnam for bottled water. This is due to their excellent properties like transparency, recycling, and safety when storing food and drinks. Additionally, plastics can be lightweight which greatly reduces logistics costs. Plastics will be the preferred packaging material to pack bottled water in Vietnam throughout the forecast period.
II. Competitive Landscape
Local players such as Suntory PepsiCo Vietnam Beverage Co. Ltd., Tan Hiep Phat Group, and Hoang Ha Co., Ltd. dominate the market with their extensive distribution networks and affordable pricing strategies. These companies offer a range of water bottle products, including mineral water, purified water, and flavored water.
On the other hand, international players like Nestle, Coca-Cola, and Danone also have a significant presence in the market. These companies leverage their strong brand recognition and marketing capabilities to position their premium water bottle products as a status symbol and a lifestyle choice. For instance, Nestle’s premium water brand, Perrier, is marketed as a fashionable and sophisticated product.
In addition to established players, there has been a surge in the number of new entrants in the market. These companies offer niche products such as eco-friendly and reusable water bottles, targeting environmentally conscious consumers. For instance, Bamboo Straw Co., Ltd. offers bamboo-made water bottles, while OiCup Co., Ltd. offers collapsible and reusable water bottles.
III. Consumer Behaviour
Consumers in Vietnam are becoming more health-conscious and are increasingly aware of the importance of staying hydrated throughout the day. As a result, they are more likely to purchase bottled water to ensure they have access to clean and safe drinking water. Furthermore, the rise of fitness and sports culture in the country has also contributed to the growth of the water bottle market.
In terms of preferences, consumers in Vietnam tend to prefer lightweight and portable water bottles that are easy to carry around. They also tend to favor brands that are perceived as trustworthy and offer good value for money. Additionally, eco-friendliness is becoming an increasingly important factor in purchasing decisions, with consumers opting for reusable water bottles that help to reduce plastic waste.
Marketing tactics such as advertising campaigns and product endorsements by popular influencers have also played a significant role in shaping consumer behaviors in the water bottle market. As a result, numerous companies are investing heavily in these areas to gain a competitive advantage.
IV. Rising trends, opportunities and challenges
The future outlook for the water bottle market in Vietnam looks promising with significant opportunities for innovation and new product development. One of the biggest areas for growth is in the development of eco-friendly water bottles that are sustainable and reusable. As consumers in Vietnam become more environmentally conscious, they are seeking out products that are less harmful to the environment. Companies that can offer innovative solutions such as biodegradable or compostable water bottles are likely to gain a competitive advantage.
Another area for potential growth is in the development of smart water bottles that can track hydration levels and provide reminders to drink water throughout the day. These products are becoming increasingly popular in other markets and could offer significant opportunities for companies operating in Vietnam.
However, there are also potential challenges and obstacles to future growth in the water bottle market. One of the main challenges is the increasing awareness of the negative impact of plastic waste on the environment. The Vietnamese government has implemented strict regulations to curb the use of single-use plastics, which could significantly impact the water bottle market. Companies that are able to adapt to these regulations and offer sustainable solutions are likely to succeed.
Another potential challenge is the increasing competition in the market. As the market grows, more companies are entering the industry, leading to greater competition and price pressures. Companies that can differentiate themselves through innovation and marketing strategies are likely to thrive in this competitive environment.
Overall, the water bottle market in Vietnam offers significant opportunities for innovation and growth, particularly in eco-friendliness and smart technology. However, companies must navigate potential challenges such as government regulations and increasing competition to achieve long-term success in this market. Click this link below to learn more about how foreign brands can distribute products in Vietnam: