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Mineral water market in Vietnam: A potential flow or a “wave” of competition?

According to statistics, the Beverage Industry in Vietnam contributes significantly to the state budget with annual revenue reaching up to 60 trillion VND, accounting for 3.2% of total revenue. In terms of growth rate, according to the Vietnam Beer - Alcohol - Beverage Association, the beverage industry will maintain a growth rate of 7% per year.





Mineral water is one of the types of water that originates naturally, containing many minerals and dissolved gases. Mineral water provides many minerals for the body such as Magnesium, Potassium, and Calcium - extremely important minerals for metabolic processes and body regulation.


Some popular types of mineral water:


  • Salty mineral water: Contains many beneficial minerals, helps supplement the missing components in the daily diet. However, due to its bitter and slightly salty taste, this type of mineral water is quite picky for users.

  • Sweet mineral water: Usually has a milder taste compared to salty mineral water. Popular sweet mineral water brands in Vietnam include Lavie, Vinh Hao, Evian, Vivant, Ion Life, Dasani.

  • Carbonated mineral water: Gives a refreshing and cool feeling when drinking.

Each brand will have different types of mineral water based on mineral composition and processing methods.


On average, each Vietnamese person consumes 23 liters of soft drinks/year, lower than the world average consumption of 40 liters/year. Along with that, after the covid 19 pandemic, consumers are increasingly aware of the importance of health and tend to prefer choosing products originating from nature, without preservatives. This creates a demand for the use of clean water sources, mineral water containing mineral components good for health. This is both an opportunity and a challenge for businesses, establishments, and households in the mineral water industry.





Aquafina


Aquafina, a product of the Suntory PepsiCo VietNam corporation, officially entered the Vietnamese market in April 2002. The company's flagship product is purified water, which is produced through Pepsi's proprietary Hydro 7 filtration process, ensuring pure quality and excellent taste.


In Vietnam, Aquafina is widely distributed and holds a leading position in the bottled water market. The Water MAN, a leading water delivery service in Vietnam, is the main distributor of Aquafina.


In addition, Aquafina collaborates with renowned designer Cong Tri to create unique packaging designs. This reflects Aquafina's mission: not only to provide drinking water, but also to create a fashionable experience for users when using their products.


In 2022, Suntory PepsiCo VietNam witnessed significant growth in its net revenue, reaching nearly 24 trillion VND, an increase of nearly 40% compared to the same period last year. In terms of after-tax profit, the company also showed positive signs as net profit continued to rise, surpassing the 3 trillion VND mark, corresponding to an increase of nearly 40% compared to 2021.


The above business results are for the entire Suntory PepsiCo Beverage Company in Vietnam, including Aquafina. 


Lavie


Lavie, a renowned mineral water brand, is a member of Nestlé - the world's leading food and beverage company. Lavie joined Nestlé Water in 1992 and for the past 30 years, Lavie has continuously provided the highest quality products and services to its customers.


Lavie's production process ensures discretion and the product is bottled using modern equipment, under the strict supervision of the Nestlé Group. Lavie has led the bottled natural mineral water market with the highest market share for over 30 years. Lavie's main products include large and small bottled natural mineral water.


Lavie has a wide distribution network across Vietnam, including the Southern and Northern regions. In terms of partnerships, Lavie and Nestlé Vietnam have jointly established a packaging recycling alliance in Vietnam, known as the Packaging Recycling Organization Vietnam (PRO Vietnam), in June 2019.


Lavie had a not-so-smooth year in 2021 when both net revenue and net profit declined. However, Lavie's business situation showed more optimism as it entered 2022 with a recovery in both net revenue and after-tax profit. Specifically, Lavie's net revenue increased nearly 20% compared to 2021, reaching over 2 trillion VND. Not only that, Lavie's after-tax profit recorded an impressive growth rate of more than 120% compared to the same period last year, reaching nearly 170 billion VND at the end of 2022.


Vinh Hao


Vinh Hao, a renowned mineral water brand, was established in 1928 and is famous for its high-quality mineral water products. The mineral water source is exploited from the Tuy Phong area, Binh Thuan province, and is rated as having quality equivalent to Vichy mineral water from France.


Vinh Hao not only distributes products domestically but also exports to many countries around the world such as the United States, Australia, Canada, and Taiwan. Vinh Hao's distribution network is widespread, ensuring that products are always available in stores and supermarkets.


In addition, Vinh Hao does not hesitate to spend on technology innovation, they have imported modern and automatic production lines from the United States and Poland to meet the increasing demand of customers. With over 95 years of development, Vinh Hao has become one of the leading mineral water brands in Vietnam today.


The business situation of Vinh Hao witnessed many fluctuations when the company's net revenue recorded a slight decrease in 2021 and then improved, increasing nearly 10% compared to the same period last year, with the achieved figure being over 500 billion VND. Vinh Hao's after-tax profit also showed optimistic signs when ending 2022 with a net profit increase of nearly 50% compared to the same period in 2021, reaching nearly 120 billion VND.



Net revenue of mineral water enterprises in Vietnam
Net revenue of mineral water enterprises in Vietnam

Vikoda


Vikoda, a brand of Khanh Hoa Mineral Water Joint Stock Company, has been on the market since 1990 and has become a familiar product in the daily life of Vietnamese people over many years.


Vikoda focuses on producing alkaline mineral water from a 220m deep source, free of impurities, with an alkaline pH = 9.0. Vikoda always ensures product quality through the use of advanced technology and strict quality control.


With a distribution network spread across Vietnam, Vikoda has provided millions of liters of clean water to consumers. They have also contributed to promoting tourism and cuisine in Ninh Thuan province. Moreover, in 2021, Vikoda expanded its international market through the e-commerce platform Tradekey.com, one of the largest trading platforms in the world with about 10 million members from 240 countries.


Vikoda's net revenue showed signs of stagnation in 2021 and then slightly increased by nearly 10% in 2022, reaching over 250 billion VND, but not enough to show a breakthrough in the company's business operations. In addition, Vikoda's after-tax profit also recorded many fluctuations when net profit in 2021 increased sharply compared to 2020 but then ended 2022 with a significant decrease of more than 60% compared to the same period last year, only remaining at nearly 5 billion VND.


I-on Life


I-on Life is a Vietnamese beverage brand, produced by Hoang Minh Water Joint Stock Company in Ho Chi Minh City. The company was established in 2008, has over 15 years of experience in the beverage industry, and aims to become a leading entity in the bottled water sector in Vietnam. Their flagship product, i-on Life, is natural alkaline ion water, extracted from a rare water source and alkalized using modern electrolysis technology from the OSG Group in Japan.


2022 was perhaps a favorable business year for I-on Life when its net revenue recorded an increase of more than 30% compared to the same period two years ago, reaching over 140 billion VND by the end of 2022. Notably, not only did net revenue increase, but the company's net profit also achieved impressive growth, reaching over 20 billion VND, corresponding to an increase of nearly 400% compared to the same period in 2021.


Satori


Satori, a mineral water brand established in 2017, specializes in the production and distribution of various types of beverages. Satori's flagship product is purified mineral water, produced using advanced technology. Satori always strives to improve quality and diversify its product portfolio.


Satori's factory is located in Long Hau Industrial Park, Can Giuoc District, Long An Province, with an open factory model, customers can visit and learn about the production process. Satori's products are widely distributed across all districts in Ho Chi Minh City. Satori aims to become an iconic beverage brand, showing deep concern for consumer health.


Satori's net revenue showed improvement in 2022 after a decline in net revenue the previous year, however, it has not yet returned to the net revenue level achieved in 2020. In compensation, after-tax profit has been stably recovered over the years, although by the end of 2022, Satori's net profit continued to be recorded at a negative level with nearly 13 billion VND.



Profit after taxes of mineral water enterprises in Vietnam
Profit after taxes of mineral water enterprises in Vietnam

Vital


Vital is a brand specializing in the production of mineral water since 1996. Their main product is natural mineral water, extracted from a 450m deep source, rich in minerals beneficial for health. The production process adheres to Italian standards, ensuring quality from extraction to bottling. Vital offers a variety of packaging, from small 350ml bottles to large 20L containers, helping to build credibility in the market. Under the supervision of experts both domestically and internationally, Vital has continuously developed and expanded its distribution network throughout Vietnam.


From 2020 to 2022, Vital's business situation recorded a stable growth trend in net revenue and saw a significant improvement in the company's net profit. With steady growth over the years, Vital's net revenue continued to increase strongly, reaching over 90 billion VND in 2022, an increase of more than 100% compared to 2021. Similar to Satori, Vital also recorded a net loss over the three years, although this loss is being improved, the company has not yet made a profit by the end of 2022.


Sapuwa


Sapuwa, a mineral water brand of Saigon Pure Water Co., Ltd., was established in 1992. Specializing in providing purified water, Sapuwa uses standard water sources, processed through a filtration and sterilization process using Ozone.


Sapuwa is the first Vietnamese brand to achieve SQF 2000 certification for food safety in 2002. With a large distribution network, Sapuwa has won the trust of millions of domestic consumers, and has existed in the market for more than three decades, competing with multinational corporations.


In terms of partnerships, Sapuwa has collaborated with leading experts from Thailand in the field of purified water production. They have also recommended partners to produce raw materials for the bottled water industry, aiming to create a domestic supply.


The business situation of Sapuwa shows that the company is struggling when the company's net revenue in 2022 recovered slightly, increasing nearly 20% to nearly 65 billion VND compared to the same period last year. However, the company's net profit recorded a large loss in 2021 with a figure of more than 3 billion VND and ended 2022 with a net profit continuing to be negative.


The bottled mineral water market in Vietnam is undergoing significant changes. With the rise of modern lifestyles and health awareness, the demand for bottled mineral water is increasing. Especially in the context of the Covid-19 pandemic, the consumption of bottled water has become an undeniable trend. However, this market is also facing certain challenges, including fierce competition from domestic and foreign brands, as well as environmental concerns related to the use of plastic bottles. These are the factors that any business wanting to enter this field needs to carefully consider.


Source: Vietdata's 2022 Mineral Water Market Report.

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