No.3372
Water Delivery Services Market in Japan: Key Research Findings 2023
Water Delivery Market for FY2023 Projected to Grow by 3.9% from Previous Fiscal Year
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic water delivery services market and its peripheral market, and found out the trends by segment, the trends of market players, and future perspective.
Market Overview
The size of the water delivery market was estimated at 175 billion yen for FY2022, showing a growth of 2.3% of the previous year's level, based on the retail price. Due to the easing of pandemic restrictions, businesses were able to conduct demo sales at commercial facilities, leading to the acquisition of new customers.
Meanwhile, many companies also experienced a downward trend in water consumption at home. The decline in FY2022 attributed to the relaxation of behavioral restrictions that led people to go out more and commute to office, which in turn decreased the time spent at home, as well as to the raise of prices following the increase in delivery fees, which discouraged customers from purchasing mineral water.
Noteworthy Topics
New Market Entries to Pour-Over Water Dispenser Market
While both the market of point-of-use (POU) water dispenser and pour-over water dispenser showed rapid growth in FY2020, expansion of the pour-over water dispenser market in the last few years has been remarkable in particular. Backed by the advantage of not requiring any kind of installation work, water delivery businesses have started, or are considering, the release of pour-over water dispenser as one of their product lines.
Starting with Mt.Fuji Springs Inc. in April 2021, water delivery services like Premium Water Holdings and Saisan Home Service are embarking on the sales of pour-over water filtration dispenser in November 2022 and March 2023, respectively. Furthermore, TOKAI, another water delivery provider, and Water Stand, which mainly sells POU dispenser, entered the business of bottle-fed water dispenser business in April 2023. With the new market entries, continuous growth is anticipated for the market of water dispenser.
Future Outlook
The water delivery market is expected to reach 103.9% of the previous year to 181.8 billion yen for FY2023, based on the end-user price.
Some water delivery service providers extended their offerings to pour-over dispenser for the purpose of retaining existing customers and acquiring new customers. In fact, the market witnessed the cases where existing customers switched from water delivery contract to pour-over water dispenser contract. Given the situation, the growth of water delivery services market is projected to slow down gradually.
Research Outline
2.Research Object： Mineral water delivery services, enterprises providing Point-of-Use (POU) water dispensers or pour-over water dispensers
3.Research Methogology： Face-to-face interviews by our expert researchers (including online interviews), survey via telephone, and literature research
In this research, water delivery services refer to businesses that rent water dispensers to homes and offices and deliver large bottles of mineral water for use with those dispensers. The market size for water delivery service is calculated based on retail value (end-user sales price). This category excludes water delivery without dispenser rental and water dispenser rental without water delivery—such as POU water dispenser, pour-over water dispenser—and the delivery of PET water bottles.
Point-of-Use (POU) water dispenser is a dispenser connected directly to water supply line. Water is purified through high-performance filters and stored in a built-in tank, which is automatically refilled.
Pour-over water dispenser is a freestanding unit that requires manual refilling of an internal reservoir. Similar to POU dispensers, water is purified through high-performance filters and stored in a built-in tank.
＜Products and Services in the Market＞
Water delivery services, POU water dispenser, pour-over water dispenser
Published Report
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