At the end of 2008, there were a total of 694,000 coolers installed, 12% more than five years ago, but 3% fewer than in 2007.
“The UK market experienced very rapid growth through the 1990s and it has certainly slowed since then,” said Zenith director Mark Groves. “Most employers now recognise the value of healthy hydration at work, but the economic downturn has led to a recent reduction in the overall number of locations.”
The biggest change in the market has been a move from bottled water coolers to plumbed-in mains water coolers – known as point of use coolers. In 2003, point of use accounted for 14% of the total. By December 2008, its share had risen to 38%.
“Most coolers are located in offices or other places of work,” said Groves. “Point of use has proved particularly popular in hospitals and schools. The average cost of a cooler is around £250 a year, including cups and sanitisation, so it’s a relatively modest expense for a material employee and consumer benefit.”
The industry’s two leading companies are Eden Springs and PHS Waterlogic, each with around 100,000 units. Third-placed Powwow Water Company was bought by Lomond Hills from Nestlé Waters Powwow in December 2008. Angel Springs and Culligan International are the only other companies with more than 20,000 units.
After a further small market decline, Zenith forecasts a return to gradual growth, taking the total number of coolers to 750,000 by 2015, when there could well be more point of use than bottled coolers.
The full 2009 Zenith ‘Report on UK Water Coolers’ contains more than 140 pages of market commentary, charts and tables, together with company profiles.
Source: Zenith International
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