Market Research at the 2019 WE Conference

November 27, 2019

At the WE Conference on 17 October 2019 in Berlin, Richard Hall of Zenith Global reported on the latest industry research into the water dispense markets in both East and West Europe.  This included the most significant revision of scope in the last 10 years incorporating integrated tap systems (ITS) alongside bottled water and mains-fed units.
Key highlights from the 2019 research;

  • The water dispense sector is going through a period of innovation as companies look to continue to benefit from macro and industry changes. The plastic debate will continue across Europe benefitting POU (Point Of Use) and ITS (Integrated Tap Systems) machines which are able to offer a truly differentiated proposition.
  • In 2018, the total installed base of water dispense units in Europe rose by 4.5% in to 6.2 million units. Whilst the growth in 2018 was similar to 2017, annual growth over the review period has been strong, posting a CAGR of 4.2% for 2014 - 2018 in unit terms. Countries in West Europe account for 65% share of all units with East Europe the remainder.
  • The UK remained the largest national market, with 21.0% of the West Europe installed base. Other large West European markets include Germany (14.2%), France (12.7%), Italy (12.6%) and Spain (12.2%) These five countries thus accounted for nearly 75% of the West European units installed.
  • Russia remains the largest market in East Europe with 36% of the installed based in East Europe, followed by Poland (22.1%) and Romania (8.5%). These 3 countries account for over 65% of units installed in East Europe.
  • ITS will be the best performing sector, with the number of installed units projected to rise by 37% over the forecast period to 2023 to reach almost 900,000 units. Overall the ITS sector is forecast to grow at a CAGR of 6.4% over the forecast period and healthy growth is expected particularly in West Europe. In East Europe, ITS will continue to be negligible in 2023, though it will see strong growth rates from a very low base.
  • The European dispense market is forecast to continue to expand and whilst there is caution - both rental and water pricing remains highly sensitive and margins remain under extreme pressure with revenue growth hard to sustain – there is also significant opportunity as customers will look for machines to provide premium, flexible and environmentally friendly units across a full range of verticals offering water dispense companies a unique chance to innovate.
  • Overall the 2023 outlook is positive with the total market rising to 7.3 million units, a 19% overall growth, Bottled water dispensers are up 15%, POU dispensers up 23% and ITS up 37%.