30% Growth for European point of use water coolers in 2002
According to a new market update from leading drinks consultancy Zenith International, Europe’s fledgling point of use water cooler industry recorded 30% growth in 2002. More than 34,000 units were installed during the year, taking the total to 149,800 across 16 countries. Zenith's latest report supplements the first ever study on this new segment of the cooler market conducted last year and tracks its progress over the past 12 months.
Point of use (POU) continues to increase its penetration of the total cooler industry, rising from a 7.3% share in 2000 to 8.9% in 2002. Zenith's analysis shows that POU is developing mainly on the back of the bottled water cooler market, with over 60% of new business being conversions from bottled water coolers.
As with bottled water coolers, the United Kingdom is by far the largest POU market in Europe, with the greatest number of new units installed and a 43% share in 2002. Ireland has the highest POU penetration per thousand people, lifting it to second place on 11%, just ahead of France.
Despite this robust growth in 2002, Zenith found that the industry’s expectations had been even higher. It suggests a number of factors which may have held some companies back, such as economic uncertainty, limited investment in promotion and sales, and strong competition from the better resourced bottled water cooler sector. “The POU industry faces many challenges if it is to emulate the success of bottled water coolers,” commented Zenith International Research and Development Director, Gary Roethenbaugh. “Nevertheless, a succession of leading international players have come to recognise the POU opportunity and are reporting serious budgets for their marketing activities in 2003.”
In the coming years, Zenith forecasts that the European POU market will display annual growth rates between 25% and 30%, to reach the 500,000 mark in 2007. Yet, given the potential for point of use to expand into the domestic sector and the extensive product innovations that have already taken place, Zenith cautions that these estimates could prove to be conservative.
Notes for editors
For further information, please contact:
Gary Roethenbaugh or Laura Ellis
Zenith International Ltd
7 Kingsmead Square Bath BA1 2AB United Kingdom
t +44 (0)1225 327900 f +44 (0)1225 327901
zenithinternational.com
info@zenithinternational.com
Point of use (POU) continues to increase its penetration of the total cooler industry, rising from a 7.3% share in 2000 to 8.9% in 2002. Zenith's analysis shows that POU is developing mainly on the back of the bottled water cooler market, with over 60% of new business being conversions from bottled water coolers.
As with bottled water coolers, the United Kingdom is by far the largest POU market in Europe, with the greatest number of new units installed and a 43% share in 2002. Ireland has the highest POU penetration per thousand people, lifting it to second place on 11%, just ahead of France.
Despite this robust growth in 2002, Zenith found that the industry’s expectations had been even higher. It suggests a number of factors which may have held some companies back, such as economic uncertainty, limited investment in promotion and sales, and strong competition from the better resourced bottled water cooler sector. “The POU industry faces many challenges if it is to emulate the success of bottled water coolers,” commented Zenith International Research and Development Director, Gary Roethenbaugh. “Nevertheless, a succession of leading international players have come to recognise the POU opportunity and are reporting serious budgets for their marketing activities in 2003.”
In the coming years, Zenith forecasts that the European POU market will display annual growth rates between 25% and 30%, to reach the 500,000 mark in 2007. Yet, given the potential for point of use to expand into the domestic sector and the extensive product innovations that have already taken place, Zenith cautions that these estimates could prove to be conservative.
Notes for editors
For further information, please contact:
Gary Roethenbaugh or Laura Ellis
Zenith International Ltd
7 Kingsmead Square Bath BA1 2AB United Kingdom
t +44 (0)1225 327900 f +44 (0)1225 327901
zenithinternational.com
info@zenithinternational.com