Value of the UK water dispenser market falls 15% to £160m

The value of the UK water dispenser market fell 15% in 2020 to £160 million, according to the latest findings from market research firm Zenith Global.

Despite the decline, Zenith’s report asserts that the UK water dispenser sector is anticipated to return to growth in 2021, with 900,000 unit placements predicted by 2024.

According to Zenith’s research, the impact of workplace closures due to the Covid-19 pandemic saw water sales volumes decline 29%, a significant factor in the overall contraction of the market in 2020. Bottled water dispensers have traditionally accounted for the majority of water dispenser revenue in the UK, generating £113.4 million in 2019, 59.1% of total market revenue.

The research asserted that the industry’s overall customer base declined 3% in 2020, while the total number of water dispensers in December 2020 was estimated by Zenith to be 840,000.

Point-of-use/mains-fed water dispenser placements notably overtook bottled water dispensers for the first time in the UK market. According to Zenith, mains-fed water dispenser units now hold 39% of market share, compared to 38% for bottled water dispensers, as bottled water dispenser units fell 8%.

Meanwhile, integrated tap system installations grew by 4% to reach a 23% share of the market.

The findings were presented as part of a webinar for members of the Water Dispenser and Hydration Association (WHA), the trade body that represents the water dispensing industry in the UK and a partner association of Refreshment magazine.

Richard Hall, chairman of Zenith Global, said: “With over 80% of bottled units in places of work, it’s inevitable that the hardest hit was in water sales volumes, which dropped by 29%. This led to overall revenue for the industry declining by 15% to £160 million.

“Despite this, Zenith is forecasting a nearly complete bounce back in 2021, followed by renewed growth in the next few years. We expect the number of water dispensers to exceed 900,000 for the first time in 2024.”

Hall continued: “Consumers have definitely become more interested in the health benefits of better hydration wherever they are.

“They are also increasingly interested in dispense and refill solutions in preference to single-use packaging. Bottled water dispensers might regain momentum if more consumers realised the bottles are often collected and refilled as many as 20 times.”

WHA chairman Jon Wicks added: “We all know that 2020 was a tough year for the industry. However, hydration continues to be essential for workforce wellbeing.

“With WHA members offering high-quality sustainable hydration solutions, we are confident of a significant bounce back in 2021/22.”