57% growth for Europe's point-of-use industry in 2001
The first ever study of Europe's fledgling point-of-use water cooler industry, by leading drinks consultancy Zenith International, reveals growth of 57% in 2001 to 123,000 units across 16 countries.
Zenith's new 220 page Guide to Point-of-use Water Coolers in West Europe shows how plumbed in point-of-use (POU) coolers have gained momentum in the past three years, emulating the recent successes of bottled water coolers.
"At this early stage of the market's development and with such high growth, it is not surprising that point-of-use has substantially increased its share of the total European cooler sector to 8.5%," commented Zenith Chairman Richard Hall. "We estimate that 64% of POU installations are replacing bottled coolers and 36% represent entirely new business."
Although similar to a bottled water cooler in appearance, a POU unit draws water from the mains supply. It may then filter, purify, heat, chill, even carbonate the water prior to consumption. Rather than depend on maintaining stocks of bottles, POU coolers have an unlimited supply. Without a defined water brand, however, POU companies must rely on the design and branding of the units for their marketing.
The United Kingdom has the largest European POU presence, with a 42% share and the greatest number of newly installed units in 2001. Just behind France in second place, Ireland is clearly the most established market with the highest number of units per person. 2001 rates of growth varied widely across Europe, led by Germany where the market trebled in size and four countries where installations at least doubled - Finland, Italy, Denmark and Switzerland.
The structure of the European POU industry is both complex and fragmented. PHS Waterlogic became the leading operator with around 15,000 units after it acquired the UK Water Group in December 2001. In contrast to bottled water cooler distributors, POU businesses do not need to invest in water delivery transport, so the barriers to entry are much lower. As a result, the sector is attracting a broad range of entrants, including bottled water cooler companies, water treatment firms and vending specialists.
In the coming years, Zenith forecasts that the European POU market will display annual growth rates between 25% and 40%, reaching in excess of 450,000 units by 2006. Yet, given the current level of entrepreneurship, the advances anticipated by new entrants, the many product innovations taking place and the additional opportunities possible from inroads into the residential sector, Zenith cautions that these estimates could prove to be conservative.
The 2002 Zenith Guide to Point-of-use Water Coolers in West Europe contains 228 pages, 111 distributor/manufacturer profiles and 16 country profiles. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com
Notes for Editors
1. For further information, please contact:
Richard Hall or Gary Roethenbaugh, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
Tel +44 (0)1225 327900 Fax +44 (0)1225 327901
Zenith's new 220 page Guide to Point-of-use Water Coolers in West Europe shows how plumbed in point-of-use (POU) coolers have gained momentum in the past three years, emulating the recent successes of bottled water coolers.
"At this early stage of the market's development and with such high growth, it is not surprising that point-of-use has substantially increased its share of the total European cooler sector to 8.5%," commented Zenith Chairman Richard Hall. "We estimate that 64% of POU installations are replacing bottled coolers and 36% represent entirely new business."
Although similar to a bottled water cooler in appearance, a POU unit draws water from the mains supply. It may then filter, purify, heat, chill, even carbonate the water prior to consumption. Rather than depend on maintaining stocks of bottles, POU coolers have an unlimited supply. Without a defined water brand, however, POU companies must rely on the design and branding of the units for their marketing.
The United Kingdom has the largest European POU presence, with a 42% share and the greatest number of newly installed units in 2001. Just behind France in second place, Ireland is clearly the most established market with the highest number of units per person. 2001 rates of growth varied widely across Europe, led by Germany where the market trebled in size and four countries where installations at least doubled - Finland, Italy, Denmark and Switzerland.
The structure of the European POU industry is both complex and fragmented. PHS Waterlogic became the leading operator with around 15,000 units after it acquired the UK Water Group in December 2001. In contrast to bottled water cooler distributors, POU businesses do not need to invest in water delivery transport, so the barriers to entry are much lower. As a result, the sector is attracting a broad range of entrants, including bottled water cooler companies, water treatment firms and vending specialists.
In the coming years, Zenith forecasts that the European POU market will display annual growth rates between 25% and 40%, reaching in excess of 450,000 units by 2006. Yet, given the current level of entrepreneurship, the advances anticipated by new entrants, the many product innovations taking place and the additional opportunities possible from inroads into the residential sector, Zenith cautions that these estimates could prove to be conservative.
The 2002 Zenith Guide to Point-of-use Water Coolers in West Europe contains 228 pages, 111 distributor/manufacturer profiles and 16 country profiles. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com
Notes for Editors
1. For further information, please contact:
Richard Hall or Gary Roethenbaugh, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
Tel +44 (0)1225 327900 Fax +44 (0)1225 327901