And the restraints are…
Competition from water dispensed by vending machines, the price of bottled water, and growing consumer awareness of the environmental impact of bottled water are found to be restraining bottled water growth in Malaysia. Water from vending machines is becoming increasingly popular as many of these machines are strategically located for the convenience of consumers as well as costing less per unit when compared to single-serve bottled water. In addition, growing consumer concern for the environment, both in terms of the wastes resulting from the PET (Polyethyleneterepthalate) bottles and the effect on the ecological system from wide-scale water extraction, is also a reason for some consumers to restrain from purchasing bottled water.
What’s next?
Bottled water is a lucrative market in Malaysia given the increasing consumer demand for still bottled water. The market is set to undergo greater product differentiation with participants expected to expand into functional and flavored bottled water and to improve on packaging in order to obtain a higher share of the market. Competition is also foreseen to increase with more private labels appearing in the market. Positive growth in this market has increased the interest of other manufacturers and distributors and the increasing competition is likely to spur growth in the coming years.
At the end of the day, water is water; all that matters is how well it is packaged, and made endearing to the consumer.