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Economy

Price drops below 1 yuan, drinking water market launches' price war 'in summer

2024-07-19   

Led by Nongfu Spring's new green packaged purified water, the drinking water industry has also sparked a "price war". According to the reporter's visit, various brands of bottled drinking water sales and large packaging have lowered their prices under various promotional activities, with each bottle priced below 1 yuan. Among them, Nongfu Spring Green Bottle Pure Water is even as low as 0.825 yuan per bottle. In April of this year, Nongfu Spring launched green packaged purified water, and the discount has been further increased recently. At the official flagship store of Tiktok, Dingdong Shopping Mall and Xiaoxiang Supermarket platform, 12 bottles of 550ml green bottles of purified water sell for 9.9 yuan, equivalent to 0.825 yuan per bottle. Competitors such as Wahaha and Baishushan have also followed suit. On the Dingdong grocery shopping platform, the discounted price for 12 bottles of 555ml Yibao purified water has reached 11.9 yuan, equivalent to 0.99 yuan per bottle; On platforms such as JD.com and Tmall, the unit price of 570 milliliters of Baishoushan mineral water has dropped to around 2 yuan, far lower than the previous retail price of 3 yuan. However, the reporter noticed that the current price reduction of bulk products in online channels is relatively obvious, but it has not yet been fully transmitted to retail products on the consumer end. At a supermarket store in Chaoyang District, a pack of 12 bottles of 550ml Nongfu Spring purified water is priced at 15.8 yuan. The staff told reporters that there was only one batch of goods that came and sold out quickly after arrival. Summer is the peak consumption period for bottled drinking water, and various brands also compete through price. But compared to previous years, this year's promotional efforts are greater and the scope is wider. Food industry analyst Zhu Danpeng believes that Nongfu Spring's purified water can significantly lower retail prices, and production costs are one of the key factors. Compared to other types of water, the production cost of purified water is the lowest. From a production perspective, it has no requirements for water sources, as long as they are safe, including groundwater, river water, or lake water. Mineral water has requirements for the water source, and requires mining and water extraction certificates, with a budget of tens of millions of yuan He said. In addition, thanks to its extensive layout in national terminals, Nongfu Spring can significantly reduce the cost of introducing new green bottle purified water into the market, thus having a price advantage of less than 1 yuan per bottle. According to a report by Zhuoshi Consulting, the market size of purified drinking water in packaged drinking water will account for 56.09% in 2023, with a compound annual growth rate of 7.7%. In the next five years, its growth rate will be higher than that of natural mineral water, with a larger volume and faster growth rate. The current drinking water industry has entered a stage of full water operation. However, some health experts suggest that consumers can mix and drink multiple types of drinking water alternately in their daily lives, and should not use purified water or mineral water as a single daily drinking water for a long time. (New Society)

Edit:NingChangRun Responsible editor:LiaoXin

Source:Beijing Daily

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