Environment protection and health care are two rising industries in the twenty-first century. Now clean water has become the shortest resources in the world; while China, as a country with poor water resource, not only is in the embarrassment of water shortage but also suffers a lot from water pollution. Seven major water bodies and main lakes are badly polluted. 90%of the rivers flowing through cites fail to meet the drinking water standard and 75% lakes are of rich nutrition. Most Chinese citizens take tap water as their drinking source. But with the deterioration of the pollution, tap water can hardly meet the healthy standard of drinking water. Therefore, great potential lies in China drinking water market. It is estimated that in the next few years, China has a market capacity of RMB 50 billion yuan per year towards drinking water.    

In the early nineties last century, the second drinking water revolution marked by bottled drinking water appeared in China, secretly but definitely, challenging the traditional drinking source of tap water. With people¡¯s increasing attention to water quality, another two important sources, terminal tap water maker and pipe direct-drink water emerged gradually to share the drinking water market.

China drinking water industry, so called golden industry, increased more than 20% year on year from 2000-2005. Ever since 2000, drinking water has got so good a popularity from Chinese customers that it gets the first place in its output among the soft drink varieties. It is now the symbol of healthy, clean and pure drink that can well satisfy people¡¯s thirsty.

Output Structure of China Soft Drink Market, 2005

A second climax in China soft drink market up-surged when the output of China drinking water reached 5.54 million ton in 2000, increasing by 63.42% compared with 3.39 million ton in 1999 and accounting for 37.2% that of the soft drink market. It was the first time that the output of drinking water had surpassed carbonated soft drink, which has been kept as a record up till now. China drinking market maintained a stable increase from 2001 to 2005.  The output of China bottled water added up to 13.86 million ton in 2005, increasing 23.75% years on year. Some native brands became well-known like Wahaha, Robust and NFSQ; meanwhile, foreign brands came into domestic market as well, Nestle, Coco-cola and Evian to name some.

Output of Drinking Water in China 2000-2005

 Drinking water produced by industrial equipment now falls into three categories, pure water, mineral water and distilled water. The rapid development of drinking water stimulates the development of the relative industries. Currently three backbone members of Water Appliance are bottled drinking water, drinking water terminal maker (water cleaner) and water supply according to its quality. Take China water dispenser market for example, it has capacity of above 10 million units. Through years of development, bottled water and water dispenser industries are now in the mature period of their life circles and a series of famous brands appeared like Meide, Qinyuan and Angel.

Brands of Water Dispenser and Related Retail Proportion in China Market, 2006

 The technology of water-purify is still limited to RO, NF and UF. Though new products emerge constantly, yet no new breakthroughs have been achieved in technology. So the market expansion will still focus on enterprise customers and newly-built residential areas. No obvious pressure will threaten the formed bottled water market.

In the near future it can be forecasted that bottled drinking water and drinking water terminal maker will share the market together. They mainly coexist and complement with each other despite that a little competition may happen sometimes. Their major competitor is water supply according to its quality. It is forecasted that in the next 20 years or maybe even a longer period, direct drinking water will not be popularized in China; Direct-drinking water equipment can not take the place of bottled water in everyday life and the leading place of the bottled water will not be shaken within a short period. Therefore various ways of drinking water supply will coexist and complement, a vast market and unlimited chances still lie in drinking water industry.

This report explains and analyses the status quo, the changes of various economical indicators, the development status of related industry, market status of key regions, leading enterprises, consumer strategies and competition strategies of China drinking water industry, based on National Bureau of Statistics of China, Light Industry Statistics Bureau, China Beverage Organization, and China Economics Information Center. It also makes prudent judgments towards the development trend of drinking water and seeks new growth points for investors. In addition, it objectively comments on the common benefits and possible risks. It is of great reference value if you are trying to decide when, what, how and how much to invest in China drinking water industry.

2 Analysis of Current Development of China's Drinking Water Industry
2.1 Development Course
2.1.1 From Tap Water to Healthy Drinking Water
2.1.2 Tanked Water Pushes Water Dispenser's Development
2.1.3 Healthy Drinking Water Has Gained Popular Supports
2.2 Changes of Market Scales, 1999-2005
2.3 Market Status
2.4 Production Analysis (by province), 2004
2.5 Production Analysis (by province), 2005
2.6 Analysis on the Structural Changes of Drinking Water Types

3 Development Analyses of Affiliated Industries to Drinking Water in China
3.1 Analysis of Water Dispenser Market
3.1.1 Water Dispenser Enjoys Large Space for Market Development
3.1.2Market Share Analysis of Water Dispenser Brands, 2005 Sep.
3.1.2.1 Market Share nationwide, 2005 Sep.
3.1.2.3 Market Share in Northeast China, 2005 Sep.
3.1.2.4 Market Share in North China, 2005 Sep.
3.1.2.5 Market Share in East China, 2005 Sep.
3.1.3 Current Status and Competition
3.1.4 Media's Technology Advantages and Market Strategies
3.1.5 Market Prospect and Problems Existed
3.2 Analysis of Soft Drink Market in China
3.2.1 Development Overview
3.2.2 Demand-Supply Analysis
3.2.3 Analysis of Consumption Features
3.2.4 Analysis of Market Competition
3.3 Analysis of Carbonated Drink Market in China
3.3.1 Analysis of Consumption Market
3.3.2 Demand-Supply Analysis
3.3.3 Analysis on Industrial Cluster Level 
3.4 Analysis of Fruit Juice Market in China
3.4.1 Analysis of Consumption Demands
3.4.2 Analysis on Industrial Cluster Level
3.4.3 Demand-Supply Analysis
3.4.4 Analysis of Market Competition Features
3.4.5 Analysis of Market Competition Trends
3.5 Analysis of Tea Drinks Market in China
3.5.1 Analysis of Consumption Demands
3.5.2 Analysis on Industrial Cluster Level
3.5.3 Demand-Supply Analysis 

4 Analysis of Market Segmentation of Drinking Water in China
4.1 Analysis of Bottled Water
4.1.1 Development Course
4.1.2 Analysis of Current Status 
4.1.3 Demand-Supply Analysis 
4.1.4 Analysis of Competition Structure 
4.1.5 Analysis of Development Trends 
4.2 Analysis of Tanked Water Market in China
4.2.1 Current Development Status
4.2.2 Existing Problems
4.2.3 Analysis of Replacement
4.2.4 Analysis of Replacement by High-end Water Dispensers
4.2.5 Future Development Trends
4.2.6 Analysis of Equipment Market
4.3 Analysis of Mineral Water Market in China
4.3.1 Features
4.3.2 Development Status
4.3.3 Scale and Output
4.3.4 Brands
4.3.5 Analysis of Main Factors Affecting Manufacturers' Development
4.3.6 Resource Situation
4.3.7 Analysis of Resource Exploitation Potentiality
4.3.8 Development after Entry into WTO
4.4 Analysis of Purified Water Market in China
4.4.1 Gradual Expansion of Domestic Market
4.4.2 Purified Water Exceeds Mineral Water
4.4.3 Analysis of Market Development
4.5 Analysis of Distilled Water Market in China

5 Analysis of Regional Markets of Drinking Water in China
5.1 Guangdong Province
5.2 Zhejiang Province
5.3 Beijing
5.4 Shanghai
5.5 Certain Important Cities

6 Analysis of Consumers of Drinking Water in China
6.1 Analysis of Consumers' General Characteristics
6.2 Survey and Analysis of Tanked Water Consumers
6.3 Analysis of Consumption Trends of Bottled Water 
6.3.1 Bottled Water Is Losing Attractiveness
6.3.2 Function Water: New Hope in Bottled Water Market
6.3.3 Advertisements: The Most Ideal "Shopping Guide" to Bottled Water
6.3.4 Channels: Favorite Water in Supermarkets

7 Marketing Strategy Analysis of Drinking Water Market in China
7.1 Analysis of Marketing Characteristics 
7.2 Analysis of Common Marketing Modes 
7.2.1 Direct Selling
7.2.2 Network Selling
7.2.3 Selling on Platform
7.2.4 Distribution from Agricultural Products Wholesale Markets to Surrounding Areas
7.3 Optimization of Selling Modes
7.3.1 Network + Platform 
7.3.2 Direct Selling + Network
7.3.3 Agricultural Products Wholesale Markets + Platform
7.3.4 Network Selling + Direct Selling
7.3.5 Sales Terminal Leadership Strategy
7.3.6 "Five Terminal Lines" 
7.3.7 Strategy of Unique Advertisement

8 Crisis and Business Opportunity Analysis of Drinking Water Industry in China
8.1 Analysis of Major Problems Existed
8.1.1 Water Resource Pollution Is Much More Serious Than Ever
8.1.2 Deficit in Good Quality Water Is Getting Significant
8.1.3 Problems of Water Pollution and Backward Water Treatment Equipment in Rural Areas
8.1.4 Problems of Natural Water Resources
8.1.5 Current Situation of Residents' Drinking Water in China
8.2 Analysis of Problems of Dual Water Supply in China
8.2.1 Low Overall Quality of Bottled (Tanked) Water 
8.2.1.1 Excessive Microorganisms Account for Low Qualified Rate
8.2.1.2 Various Brands and Prices of Tanked Water Confuse Consumers When Searching for Good Water 
8.2.2 Problems of Household Water Purifiers
8.2.2.1 Equipment Inferior to Standards and Criteria
8.2.2.2 "Equipments Without Three Certificates" Just Make up The Number
8.2.2.3 Frauds and Cheating on Consumers
8.2.2.4 Low level of "Standardization, Marketing and Internationalization", No Innovation in Technology
8.2.3 Chaos in Direct Pipeline Drinking Water Market
8.2.4 Problems of After-Sales Services
8.2.4.1 Tanked Water and Water Dispensers
8.2.4.2 Various Water Purifiers, Scattered Consumers, and Hard After-Sale Services
8.3 Water Crisis Is Inevitable
8.4 Analysis of Future Business Opportunities in Water Market
8.4.1 Output and Penetration Rate of Purified Water in China
8.4.2 Analysis of Current Status and Development Prospects
8.4.2.1 Market Analysis of Bottled (Tanked) Water 
8.4.2.2 Market Analysis of Water Dispensers 
8.4.2.3 Market Analysis of Water Purifiers 
8.4.2.4 Market Analysis of Direct Pipeline Drinking Water 
8.4.2.5 Forecast of Future Development

9 Analysis of Investment in Drinking Water Industry
9.1 Analysis of Investment Features
9.1.1 Low Industry Barrier
9.1.2 Small Risks and Short Construction Cycle
9.1.3 Obvious Regionality
9.1.4 Low Unit Cost, Low value While High Profit Rate
9.1.5 Huge Space for Investment
9.2 Suggestions to Investment
9.2.1 Suggestions to Investment Direction of New Products 
9.2.2 Suggestions to Marketing Strategies Innovation for Small and Medium Enterprises
9.2.3 Suggestions to Channel Innovation

10 Analysis of Competition of Drinking Water in China
10.1 Analysis of Market Competition
10.1.1 Competition among Different Water Types
10.1.2 Analysis of Competition Situation
10.2 Analysis of Competition Structure
10.2.1 Formation of Competition Structure
10.2.2 Competition Structure and Its Changes
10.2.3 Analysis of Regional Competition Structure
10.3 Analysis of Competition Structure of Bottled Water
10.3.1 Regional Competition Structure
10.3.2 Market Shares of Enterprises in Different Natures
10.3.3 Competition Situation
10.4 Origin of Competition Structure Formation of Equipment Markets and Industry Prospects in China
10.5 Analysis of Competition Strategies
10.6 Analysis of Competition Trends 

11 Analysis of Certain Important Drinking Water Manufacturers in China
11.1 Nongfu Spring Co., Ltd
11.2 Wahaha Group Co., Ltd 
11. Robust group Co., Ltd (GuangDong)