Growth in mains water point-of-use coolers has accelerated to over 10% a year. The market is still dominated by bottled water coolers, with a 79% share, but their number has fallen in each of the last five years to 4.3 million. In contrast, mains water point-of-use coolers have gained share each year, rising eight percentage points to 1.2 million units in 2013.
Commercial customers represent 94% of the point-of-use sector, whereas residential customers are far more significant for bottled water coolers, taking a 35% share.
As the cooler market has restructured, some of the leading companies have turned to acquisitions as a means of expanding their reach. There has been a high level of activity recently, with 15 transactions recorded since January 2012. The industry is now characterised by a handful of leading companies, with greater fragmentation at a regional and local level.
Tough competition has resulted in many companies adding office coffee supplies that allow them to offer a full range of services to commercial customers. Other typical portfolio products include small packaged beverages and kitchen hygiene products.
“Water coolers are now an essential service for staff in many businesses, but bottled water coolers have lost out to mains water point-of-use coolers due to a combination of cost, convenience and perceptions of environmental impact,” said Zenith regional research co-ordinator Cecilia Martínez.
Zenith forecasts continued overall growth, taking the market to 6.1 million units in 2018. “So long as companies focus on ways to provide better value for customers, there are significant opportunities for new entrants and existing players alike,” said Cecilia Martínez.
Point-of-use coolers are expected to reach 29% of the total by 2018.
Source: Zenith International
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