No.3663
Water Delivery Service Market in Japan: Key Research Findings 2024
Water Delivery Market for FY2024 Projected to Grow by 1.2% from Previous Fiscal Year
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic water delivery service market and its peripheral market, and found out the trends by segment, the trends of market players, and future perspective.
Market Overview
The water delivery market was estimated to be worth 177,000 million yen for FY2023, which is 101. 1% of the previous year's value (based on retail price), indicating a downward trend. Although the number of clients did not increase, heatwaves during the summer increased the number of water bottles sold per client, resulting in a slight rise in the total number of water bottles sold.
While the market for water delivery continues to be significant, increasing logistics costs have prompted major water delivery companies to transition to bottle-fed water dispensers, focusing strategically on customer retention rather than customer acquisition. The number of new customers is not increasing.
Noteworthy Topics
Strategic Moves to Focus on Bottle-fed Water Dispenser Business
Sales of bottle-fed water dispenser in FY2023 have indicated double-digit growth from the previous fiscal year, both by accumulative shipment volume and by shipment value. Against the backdrop of the expansion of the bottle-fed water dispenser market, stemming from the ease of installation that requires no technician, water delivery businesses are increasingly shifting to bottle-fed water dispenser business.
The market got a tailwind in FY2023 with distribution agencies actively acquiring new clients, while brand owners released new dispensers, offering a wider range of water servers in the market.
Future Outlook
The water delivery business market is projected to reach 179,200 million yen in FY2024, which is equivalent to 101.2% of the preceding fiscal year. Given the current strategy of companies not focusing on new customer acquisition, it is anticipated that the market growth will decelerate.
In the meantime, the market for bottle-fed water dispenser is expected to remain robust. By emphasizing retention strategies, water delivery businesses strive to enhance customer loyalty and maximize the lifetime value of each client.
Research Outline
2.Research Object： Home and office water delivery business; [business type] manufacturers, retailers; [product] water bottle & top-loading dispenser, water bottle & bottom-loading dispenser, Bottle-fed Water Dispenser (or a Bottled Water Dispenser), bottleless water cooler typically called Point-of-Use (POU) dispenser or plumbed-in water dispenser
3.Research Methogology： Face-to-face interviews by our expert researchers (including online interviews), survey via telephone, and literature research
In this research, the water delivery market refers to the businesses in the delivery of mineral water for home and office, which is provided together with a water dispenser. The market size is calculated based on the retail price. However, the service that offers water in other forms, such as the service that only lends water dispensers (including both conventional water servers and POU water servers) and the delivery of mineral water in PET bottles are not included.
<What is the Bottle-fed Water Dispenser (or a Bottled Water Dispenser)?>
In these dispensers, the user manually fills water bottles (which are typically used in top-loading or bottom-loading models) with tap water. The water is purified through filters and stored in built-in tank. It is also called water purifier dispenser or purifier-and-dispenser-in-one.
<What is the Point-of-Use (POU) Water Cooler?>
Point-of-use (POU) water cooler is a type of water server that is connected directly to the plumbing system, to use tap water to produce clean water with powerful filter and store in built-in tank. When filtered water is used, the server automatically produces purified water again and refills the tank.
＜Products and Services in the Market＞
Water delivery services, bottle-fed water dispenser, POU water cooler
Published Report
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