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Increasing Urbanization and Demand for Safe Water Spur Bottled Water Market in Indonesia Finds Frost & Sullivan - Having consumed 15.70 billion liters of water in 2009, Indonesia has emerged as the seventh-largest bottled water (mineral and non-mineral) market in the world
Increasing Urbanization and Demand for Safe Water Spur Bottled Water Market in Indonesia Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Singapore, Singapore, 2010/10/21 - Having consumed 15.70 billion liters of water in 2009, Indonesia has emerged as the seventh-largest bottled water (mineral and non-mineral) market in the world.

   
 
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In the Asia Pacific, it is the second largest in terms of total bottled water consumption, and the third largest in per capita bottled water consumption. Owing to the rising presence of contaminants in water and relatively low entry barriers, the Indonesian bottled water market is expected to register double-digit growth rates till 2016.

New analysis from Frost & Sullivan (environmental.frost.com), Bottled Water Market in Indonesia, finds that the market earned revenues of $1.31 billion in 2009 and is likely to reach $2.89 billion in 2016.

Apart from favorable economic factors, the market will also get a boost from the rising spending power of young urban consumers and improving health and safety awareness in the country.

"Large population in the urban cities of Indonesia and enhanced health and water safety awareness are the key drivers of the market," says Frost & Sullivan Program Manager Melvin Leong. "Bottled water in Indonesia is a safer alternative to tap water for consumption, and the majority of the population considers it more affordable than residential water treatment equipment."

Participants find it easy to set up plants due to the low grade of technology and investment required; but once they enter the market, they will have to be wary of counterfeiters. They also face competition from water refilling station operators that sell questionable-quality water at competitive prices.

Additionally, Indonesian authorities are introducing the use of Air Rahmat (low concentrate of sodium hypochlorite) and Sodis (solar disinfection) that eliminates biological contaminants in water, lowering the demand for bottled water.

Still, bottling plant owners can feel optimistic due to an expanding middle class population, which translates to higher sales. Furthermore, the rise in the prices of tap water and fuel has caused consumers to turn to bottled water. Companies that are willing to invest in multiple manufacturing facilities and systematic logistics for distribution in this archipelagic nation are likely to succeed.

"Interestingly, the Government is making efforts to decrease its reliance on imports and instead, depend on local production," notes Leong. "This has created numerous job opportunities and is likely to attract more investments to the bottled water market."

If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Bottled Water Market in Indonesia is part of the Environmental Growth Partnership Services program, which also includes research in the following markets: Residential Water Treatment Equipment Market in South Korea, IFM Market in Australia, and Industrial Wastewater Treatment Equipment Market in Indonesia. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Bottled Water Market in Indonesia / P3E9

 
 
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Increasing Urbanization and Demand for Safe Water Spur Bottled Water Market in Indonesia Finds Frost & Sullivan

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Frost & Sullivan |
Publisher Contact: Donna Jeremiah / Carrie Low 
+603 6204 5832 / +603 6204 5910 djeremiah[.]frost.com / carrie.low[.]frost.com
 
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