Bottled Water - Vietnam

The Bottled Water market in Vietnam has experienced significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: In Vietnam, there has been a shift in consumer preferences towards healthier beverage options, leading to an increased demand for bottled water. With rising health consciousness and concerns about the quality of tap water, consumers are opting for bottled water as a safer and more convenient alternative. Additionally, the convenience and portability of bottled water make it a popular choice among busy urban dwellers.

Trends in the market: One of the key trends in the bottled water market in Vietnam is the growing popularity of premium and functional bottled water. Consumers are willing to pay a premium for bottled water that offers additional benefits such as enhanced hydration, added minerals, or natural flavors. This trend is driven by the increasing disposable income of the middle class and their desire for healthier and more sophisticated beverage options. Another trend in the market is the rise of eco-friendly packaging. As environmental concerns gain prominence, consumers are becoming more conscious of the impact of plastic waste on the environment. This has led to a growing demand for bottled water packaged in sustainable materials such as recycled plastic or biodegradable packaging. Companies in the market are responding to this trend by introducing eco-friendly packaging options to attract environmentally conscious consumers.

Local special circumstances: Vietnam's hot and humid climate makes bottled water a necessity for many people, especially during the summer months. The high temperatures and humidity levels increase the risk of dehydration, making bottled water an essential item for staying hydrated and maintaining good health. This local climate factor contributes to the consistent demand for bottled water throughout the year.

Underlying macroeconomic factors: Vietnam's rapid economic growth and urbanization have played a significant role in the development of the bottled water market. As the country's middle class expands and disposable incomes rise, consumers have more purchasing power to spend on premium and healthier beverage options. Additionally, urbanization has led to an increase in the number of convenience stores and supermarkets, providing greater accessibility to bottled water for consumers. In conclusion, the Bottled Water market in Vietnam is driven by changing consumer preferences towards healthier options, with a growing demand for premium and functional bottled water. The rise of eco-friendly packaging and the country's hot and humid climate also contribute to the market's development. Vietnam's rapid economic growth and urbanization further support the growth of the bottled water market in the country.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.