Bottled Water - South Korea

The Bottled Water market in South Korea has been experiencing significant growth in recent years.

Customer preferences: South Korean consumers have shown a strong preference for bottled water due to concerns about the quality and safety of tap water. This preference is driven by the convenience and perceived health benefits of bottled water. With an increasing focus on health and wellness, consumers are turning to bottled water as a healthier alternative to sugary beverages. Additionally, the rise of on-the-go lifestyles and busy work schedules has also contributed to the growing demand for bottled water.

Trends in the market: One of the key trends in the South Korean bottled water market is the increasing 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, electrolytes, or added vitamins and minerals. This trend is driven by the growing health consciousness among consumers and their desire for products that offer more than just hydration. Another trend in the market is the rise of eco-friendly packaging. South Korean consumers are becoming more aware of the environmental impact of single-use plastic bottles and are actively seeking out bottled water brands that use sustainable packaging materials. This trend is in line with the global movement towards reducing plastic waste and promoting sustainability.

Local special circumstances: South Korea has a highly competitive bottled water market, with a wide range of domestic and international brands vying for market share. Local brands have a strong presence in the market and are favored by consumers due to their familiarity and trustworthiness. However, international brands are also gaining popularity, particularly those that offer unique flavors or functional benefits.

Underlying macroeconomic factors: The South Korean economy has been growing steadily in recent years, with rising disposable incomes and an expanding middle class. This has led to increased consumer spending on non-essential goods, including bottled water. Additionally, the government has implemented policies to promote the consumption of safe drinking water, further driving the demand for bottled water. In conclusion, the Bottled Water market in South Korea is experiencing growth due to customer preferences for convenience, health benefits, and safety. The market is characterized by trends such as the demand for premium and functional bottled water, as well as eco-friendly packaging. The local special circumstances include a highly competitive market with a mix of domestic and international brands. The underlying macroeconomic factors, such as a growing economy and government policies, are also contributing to the market's development.

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.