Investing in used machinery to capitalize on increase in demand for bottled water in South East Asia.
The South East Asia bottled water market is expected to grow 11.39% yearly from 2020 to 2025 and investors are moving into the region to benefit from this growth.
The drivers behind this growth are a change in customer preferences towards a clean and safe drinking water, rising disposable income and rapid industrialization. Indonesia, Philippines, Thailand, and Malaysia bottled water industries are growing exponentially. Consumers are substituting soft drinks with still bottled water to cut down their sugar and calorie intake. Also, the consumers’ perception about the unsafe nature of tap water is also boosting the demand for still bottled water in the region. The still bottled water segment accounts for the highest market share, with 67.44%, followed by carbonated water, flavored water, and functional water. The region has several nations receiving huge amounts of tourists through the year.
Still water continues to lead the bottled water market. Indonesia accounted for highest share in the bottled water market.
A market taken by large companies but with niche sectors for newcomers, particularly in the flavored and functional bottled water market.
The bottled water market in South-East Asia is fragmented and some of the leading players include Coca-Cola, Danone, PepsiCo and Nestle. The different countries have different players dominating the market. For example: In Thailand, the market is dominated by Singha, PepsiCo, Nestle and Coco-Cola. Other players include Spritzer, Vinh Hao Mineral Water Corporation, Asian Brewery, Singha Corporation Co. Ltd. etc.
Even when the bottled water market does not see huge product innovation, companies are developing new products in their quest to gain market share especially in the flavoured bottled water market.
Used machines are a great option for newcomers to access high quality machinery and reduce risk and investment.
MachinePoint just shipped a used water production line to a Middle Eastern company investing in a new water production facility on one of the South East Asian islands.
Testing the market and minimizing risk by reducing initial investment is important when establishing a new business. MachinePoint worked with the buyer for months searching for a line that best suited their needs. A special sourcing campaign was launched by MachinePoint Team which finally successfully located a used complete water production line in a factory in China.
The Chinese seller needed to sell their line as they were purchasing a new one and reorganizing their production facilities. Buyer and Seller met through MachinePoint virtually and the line was seen working in dry cycle. An independent Chinese engineering team was contracted to physically inspect the line and provide the buyer with a complete technical valuation and give him the security needed to go ahead with the purchase.
Dismantling, packaging, and loading was done by Chinese engineers, and the line it is on its way to its new home. Good luck with the water project!
