Water Dispenser Market - Global Outlook & Forecast 2023-2028

Water Dispenser Market - Global Outlook & Forecast 2023-2028

The global water dispenser market is expected to grow at a CAGR of 8.42% from 2022-2028.

Key Winning Imperatives in the Global Water Dispenser Market

• Investing in advanced filtration technologies can enable vendors to gain a competitive edge in the market, especially in the case of efficient reverse osmosis and UV technologies.
• The momentum for bottle-less or POU water dispensers is witnessing traction owing to their environmental and economic advantages over bottled dispensers.
• Corporate offices are implementing green policies in their day-to-day operations, where installing a POU system can be an ideal option to avoid plastic water jugs.

MARKET TRENDS & OPPORTUNITIES

Significance of innovative and feature enhancements

In the highly competitive water dispenser market, it has become inevitable for players to get ahead of the competition through distinctive features and attributes in terms of operation, design, installation, filtration, or technology being incorporated. Accordingly, introducing innovative features to elevate customer satisfaction is expected to be a game-changer during the next five years.

The Emergence of Coworking Spaces

The concept of coworking has come a long way from 2005 when it only involved offering a common and open space to companies of all sizes moving into coworking spaces and demanding more managers, meeting, and conference rooms. Working in coworking and flexible offices has not only become a new norm, but it is also becoming an expected and preferred destination for the current workforce.

Countries like China, the US, and India are potential markets for exploitation with a high concentration of flexible spaces. Germany and Canada are among the fastest-growing nations in the coworking industry that can also be targeted. Thus, trends like shifting to private offices, long-term contract durations, higher capacities, and desk requirements were common in 2020, which is expected to reshape the water dispenser market during the forecast period.

Demand For Clean And Filtered Water

Various microorganisms like viruses and bacteria cause waterborne diseases through contaminated water. Poor quality of water is due to industrial, animal, and human waste pollution. There are various places in the world where these diseases are rampant and deadly. Contaminated water and poor sanitation have been major sources of the transmission of various diseases.

Consumers have also realized the significance of spending more on water treatment systems for drinking purposes, where the efforts of the government in creating public awareness about waterborne illnesses have propelled the demand for water dispensers as well. NGOs and other public welfare organizations also educate and sensitize communities about the potential risks and common precautions to be taken by the population. Such measures are expected to contribute to the global water dispenser market.

INDUSTRY RESTRAINTS

Low Residential Penetration & High Maintenance Costs

Despite water dispensers' significant installation cost benefits over other conventional methods, the maintenance and other overhead costs can be high. The initial cost and maintenance of water filters hinder the adoption of home water dispensers in price-sensitive nations like India, Indonesia, and Thailand. Further, the lack of space can be challenging, especially in compact residential facilities, limiting the scope for free-standing dispensers. The low residential penetration is also due to the consumption of high-quality tap water and packaged water in European economies.

SEGMENTATION INSIGHTS

INSIGHTS BY TYPE

The bottled water dispenser market is expected to be the largest segment and accounted for 64.10% of the total revenue share in 2022, with North America and APAC being the major markets. While most established players like Avalon still operate in the bottled segment, the demand for bottled countertop dispensers is prominent in certain commercial and corporate spaces owing to their elegant design and functionality. The revenue enhancement opportunities for bottled water still exist in renting operations to museums, exhibitions, and casinos. Latin America and, the Middle East & Africa are expected to account for an 18.82% share of the revenue growth in the bottled segment during the forecast period.

Segmentation by Bottled Type

• Top-Loading
• Bottom-Loading

INSIGHTS BY OPERATION

The free-standing segment dominates the global water dispenser market. Free-standing dispensers are the most common type in commercial spaces where the demand for downpour quantity is high. While larger footprints and energy efficiency are considered challenges, countertop variants are expected to account for a major market share during the forecast period. Similarly, wall-mounted dispensers are expected to generate incremental sales of 133.47 thousand units. In contrast, under-the-sink RO filters are gaining momentum as one of the most preferred POU water treatment systems. They are also ideal for restaurants, hotels, and catering spaces since they can save countertop space.

Segmentation by Operations

• Free Standing
• Countertop
• Under-the-Sink
• Wall-Mounted

INSIGHTS BY TECHNOLOGY

The filter-free water dispenser market accounts for a 63.20% revenue share in 2022 and is expected to pose an absolute growth of 59.21% during the forecast period. This segment consists of bottled water dispensers available without filtration equipment. The free-standing bottled dispensers were the major revenue contributors to this segment in 2022. Honeywell, Primo, Whirlpool, and Avalon are some major players in this highly competitive segment. With the absence of filtration technology, the point of distinction is very low, leading to low product differentiation. Vendors are involved in product enhancement strategies in design, temperature control, certifications, energy rating, child lock feature, and touchless operations to stay ahead of the competition.

Segmentation by Filtered Technology

• Filters & Cartridges
• RO

INSIGHTS BY APPLICATION

The commercial water dispenser market is growing at a CAGR of 8.17% during the forecast period. Commercial space owners are looking for water dispensers to reduce additional costs incurred over time. Water dispensers that consumers mostly utilize in the commercial end-user segment are recommended to be more user-friendly and convenient. Low equipment failures and sustained filtered water quality are also major factors influencing customer satisfaction.

The water dispenser market in corporate spaces was valued at USD 107.74 million in 2022. Maintaining the highest levels of cleanliness and standards is a major pillar for business success among corporates. Alongside target accessing, vendors require technicians to handle more complex installations in crowded spaces without interrupting the business and work environment. This can be more specific in shopping malls, coworking spaces, hotels, and recreational centers.

INSIGHTS BY DISTRIBUTION

The offline channels are expected to be the largest distribution channels in the global water dispenser market and were valued at USD 679.85 million in 2022. The distribution environment is rapidly evolving, with systems and processes being upgraded at a rapid pace. Changes are being spurred by expanding competition, accelerating digitization, constant disintermediation, and consumerization of expectations. It is a dynamic segment where transparent pricing, communities, and social connections influence the purchase mode. This is expected to continue further, focusing on lowering costs, improving efficiencies, and opening new opportunities.

Segmentation by Distribution

• Online
• Offline

GEOGRAPHICAL ANALYSIS

• North America dominated the global water dispenser market and is expected to grow at a CAGR of 7.92% during the forecast period. Millions of Americans are prone to drinking unsafe water that exceeds the limitations set by the Environmental Protection Agency (EPA). The pervasiveness of the potential hazard has been realized by people across the country, thereby driving the demand for POU water treatment systems. Further, municipal wastewater treatment methods, usage of chemical fertilizers and pesticides in households, regulatory compliance of mining operations, and the release of cadmium and mercury from heavy industries are expected to shape the adoption of plumbed-in filtration systems in Canada during the forecast period. While chromium, lead, and arsenic are some common contaminants in tap water, natural disasters such as hurricanes and storms can result in poor water management strategies. A growing number of schools, hotels, QSR chains, and shopping malls are also in the pipeline that fuels the water dispenser market in the region.
• Europe is expected to pose an absolute growth of 52.66% during the forecast period. Germany and the UK were estimated to be the largest markets in the region, with high growth potential in Italy, France, and Spain. The deep concern over water quality and booming opportunities in the commercial countertop segment is expected to support the water dispenser market growth in the next five years.

Segmentation by Geography

• North America
• US
• Canada
• Europe
• Germany
• UK
• Italy
• France
• Spain
• APAC
• China
• Japan
• South Korea
• India
• Australia
• Latin America
• Brazil
• Mexico
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE

COMPETITIVE LANDSCAPE

The global water dispenser market is highly competitive, with many vendors. Advanced filtration technologies are the key for POU systems as consumers expect continuous product innovations and upgrades. The existing scenario drives vendors to alter and refine their unique value proposition to achieve a strong market presence. Moreover, the favorable business environment and increase in residential adoption in developing economies are expected to encourage the emergence of domestic vendors, thereby increasing the competitive threat. The presence of diversified global and regional vendors characterizes the water dispensers market. As global players are likely to increase their market footprint, regional vendors will likely find it increasingly difficult to compete with global players.

Key Vendors

• Culligan
• Primo Water Corporation
• Canaletas
• Celli Group

Other Prominent Vendors

• Avalon Water Coolers
• Blue Star
• Voltas
• Atlantis
• Clover
• Midea Group
• Ningbo Jewin Electrical Appliances
• Aqua Clara
• Alpine Coolers
• Ningbo Lamo Drinking Water Equipment
• Bibo
• Glug Glug Glug
• Arctic Coolers
• AquAid
• BRITA
• Alfred Karcher
• Mistral
• Vista France
• Sure International
• Mt. Fuji Springs
• Aimex Australia
• Royal Sovereign
• Sprudel
• CWAY Group
• Aquazania
• SEONE
• GHP Group
• Elkay Manufacturing Company

KEY QUESTIONS ANSWERED

1. How big is the water dispenser market?

2. What is the growth rate of the water dispenser market?

3. What is the sales forecast for water dispensers by 2028?

4. What are the key driving factors in the water dispenser market?

5. Who are the key players in the global water dispenser market?

6. Which region dominates the global water dispenser market?