Vietnam Bottled Water Market Outlook to 2028

Vietnam Bottled Water Market Overview

In 2023, the Vietnam bottled water market was valued at USD 10.8 Mn, driven by growing consumer demand for safe drinking water and heightened health awareness.

Leading companies like Lavie, Aquafina, Dasani, Vinh Hao, and Sapuwa dominate the market. Their strong distribution networks and brand recognition play pivotal roles in capturing market share and sustaining growth.

Aquafina partnered with several convenience store chains in 2022 to enhance its distribution network across urban and rural areas. This partnership has improved product availability and accessibility, making it easier for consumers to purchase Aquafina bottled water. The collaboration has resulted in increased sales and strengthened Aquafina's market presence in Vietnam.

Vietnam Bottled Water Current Market Analysis

The Vietnam bottled water market offers a variety of products including still, sparkling, and flavored waters, with a notable shift towards premium and health-focused options.

Still bottled water dominates the Vietnam market, valued for its natural taste and daily consumption convenience sans carbonation. Consumer preference leans towards brands offering clean-tasting water, convenient packaging, and health benefits such as minerals and electrolytes, driving market growth.

Increasing health consciousness among Vietnamese consumers is a significant growth driver for the bottled water market. With rising concerns over waterborne diseases and the safety of tap water, more consumers are opting for bottled water. Vietnam Ministry of Health indicates that 75% of urban households prefer bottled water for its perceived purity and safety in 2024.

Vietnam Bottled Water Market Segmentation

The Vietnam Bottled Water Market can be segmented based on several factors:

By Product Type: Vietnam bottled water market segmented by product is divided into still water, sparkling water and flavored water. In 2023, still water holds the largest share in the Vietnam bottled water market, driven by its popularity as a daily hydration choice appreciated for its natural taste and lack of carbonation.

This preference is fueled by health-conscious consumers seeking purity and safety in their drinking water options, making still water the dominant segment in terms of market value.

By Packaging Type: Vietnam bottled water market segmented by packaging is divided into PET bottles, glass bottles and others. In 2023, PET bottles dominate the Vietnam bottled water market in terms of packaging type. Their widespread adoption is attributed to attributes such as lightweight, durability, and cost-effectiveness, making them ideal for convenient transport and catering to the fast-paced lifestyles of consumers.

PET bottles are favored for their practicality, ensuring ease of handling and storage, thus maintaining their prominence in the market's packaging segmentation.

By Distribution Channel: Vietnam bottled water market segmented by distribution channel is divided into supermarket & hypermarket, convenience stores, online retails and others. In 2023, supermarkets and hypermarkets dominate the distribution channels of the Vietnam bottled water market.

Their widespread presence, diverse product offerings, and convenience as one-stop shopping destinations appeal significantly to consumers. These outlets provide extensive reach across urban and rural areas, offering a wide range of bottled water options that cater effectively to varying consumer preferences and needs.

Vietnam Bottled Water Market Competitive Landscape

Company

Establishment Year

Headquarters

La Vie

1992

Long An, Vietnam

Aquafina

1994

Purchase, New York, USA

Vĩnh Hảo

1928

Binh Thuan, Vietnam

Bidrico

1992

Ho Chi Minh City, Vietnam

Coca-Cola

1886

Atlanta, Georgia, USA

La Vie's USD 50 Million Investment (2023): La Vie announced a USD 50 Mn investment to expand its production capacity and enhance sustainability practices. This investment includes installing advanced purification technologies and using recycled materials in packaging. The expansion is expected to meet the growing demand for bottled water and reduce the environmental impact of plastic waste.

Coca-Cola's Recycled Plastic Bottles (2023): Coca-Cola introduced bottles made from 100% recycled plastic for its Dasani brand in 2023. This initiative is part of the company's commitment to sustainability and reducing plastic waste. The introduction of recycled plastic bottles has been well-received by consumers and is expected to set a precedent for other bottled water manufacturers in Vietnam.

Vĩnh Hảo's Flavored Water Launch (2022): Vĩnh Hảo launched a range of flavored water products, including lemon, mint, and berry flavors. This product line targets younger consumers seeking taste variety and health benefits. The flavored water segment has seen significant growth, contributing to Vĩnh Hảo's market expansion and catering to evolving consumer preferences.

Vietnam Bottled Water Industry Analysis

Vietnam Bottled Water Market Growth Drivers:

Urbanization and Population Growth: Rapid urbanization in Vietnam is contributing significantly to the bottled water market's expansion. The General Statistics Office of Vietnam projects the urban population to reach 40 Mn by 2024, increasing demand for convenient and reliable drinking water sources. The influx into cities has strained municipal water supplies, making bottled water a preferred alternative.

Tourism Industry Boom: Vietnam's flourishing tourism industry is a crucial driver for the bottled water market. The Vietnam National Administration of Tourism expects to welcome 22 Mn international tourists in 2024. Tourists often prefer bottled water over local tap water to avoid health issues, leading to higher sales.

Economic Growth and Rising Disposable Incomes: Vietnam's robust economic growth and rising disposable incomes are boosting consumer spending on bottled water. The World Bank projects Vietnam's GDP to grow by 6.5% in 2024, increasing purchasing power among consumers. As incomes rise, consumers spend more on premium bottled water products, including flavored and mineral-enriched varieties.

Vietnam Bottled Water Market Challenges:

Regulatory Hurdles and Compliance Costs: Stringent regulations on water quality and safety imposed by the Vietnamese government pose challenges for bottled water manufacturers. New standards introduced by the Ministry of Health in 2023 require advanced purification technologies and regular quality testing, increasing operational costs. These compliance costs can impact profit margins, especially for smaller manufacturers.

Competition from Tap Water and Filtration Systems: Improvements in municipal water supply and the availability of affordable home water filtration systems are reducing the dependency on bottled water. By 2024, over 85% of urban households had access to clean tap water, according to the Vietnam Water Supply and Sewerage Association. The growing adoption of home water purifiers, which offer safe and cost-effective alternatives, poses a threat to the bottled water market.

Market Saturation and Brand Loyalty: The bottled water market in Vietnam is becoming increasingly saturated, with numerous local and international brands vying for market share. Established brands enjoy strong customer loyalty, making it challenging for new entrants to penetrate the market. Consumers prefer established brands like La Vie and Aquafina, making it difficult for newer or smaller brands to gain traction without significant marketing investments.

Vietnam Bottled Water Market Government Initiatives:

Plastic Waste Reduction Program (2020): In 2020, the Vietnamese government launched a national action plan to reduce plastic waste by 75% by 2030. This initiative includes measures to ban single-use plastics and promote biodegradable materials. By 2024, significant progress has been made, with several bottled water companies adopting eco-friendly packaging solutions to comply with regulations and meet consumer demand for sustainable products.

Water Safety and Quality Standards (2023): The Ministry of Health introduced stringent water safety and quality standards in 2023 to ensure the safety of bottled water. These regulations mandate regular testing and certification of water sources and production processes. Compliance with these standards has led to improved product quality and consumer confidence in bottled water, supporting market growth.

Investment in Water Infrastructure (2021): The Vietnamese government has been investing heavily in water infrastructure to improve access to clean drinking water. In 2021, a USD 1 billion project was initiated to upgrade water treatment plants and distribution networks across the country. By 2024, these investments have resulted in better water quality and increased consumer trust in bottled water products, driving market demand.

Vietnam Bottled Water Future Market Outlook

The Vietnam Bottled Water Market is expected to show a robust growth driven by rising preference for bottled water due to health and safety concerns.

Future Market Trends

Sustainable Packaging Innovations: Sustainability will be a major trend shaping the Vietnam bottled water market. Companies will increasingly adopt eco-friendly packaging solutions to address environmental concerns. By 2025, expect more innovations like biodegradable bottles made from plant-based materials, aimed at significantly reducing plastic waste.

Premiumization and Product Differentiation: The trend towards premiumization will gain momentum in the Vietnam bottled water market. Consumers will show willingness to pay a premium for high-quality and differentiated products. Future innovations, such as new mineral-enriched and alkaline water variants, will cater to health-conscious consumers seeking enhanced benefits. This trend towards premium and functional water products will continue to stimulate market growth and foster innovation among manufacturers.

Digital Marketing and E-commerce Growth: The rise of digital marketing and e-commerce platforms will transform the bottled water market in Vietnam. With increasing internet penetration and smartphone usage, more consumers will purchase bottled water online. By 2025, expect a significant shift towards online channels, driven by targeted social media campaigns and enhanced digital advertising strategies.
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