Analysis of the development trend and investment opportunities of China's drinking water market

Since the main raw material of the drinking water industry is water, it is generally available in local production areas. At present, the main product of drinking water on the market, whether it is mineral water or pure water, is colorless and tasteless to drink, the important thing is a "pure, clean", the production process requirements are not high, are through purification treatment, bottle punching, filling, capping and other processes to complete, the key lies in advanced production equipment, good production environment and advanced production management methods.

Drinking water belongs to daily consumption food, the state has promulgated production standards, with certain production conditions, according to the standard of the national response to the production can be, no more than industrial products, after the withdrawal of their own products also have maintenance responsibility; the main raw materials required for production - water, can be obtained in the local production area, the exclusivity of assets is not strong, etc.

It is possible to establish the required factories in the production areas with water sources, purchase production equipment, and recruit some experienced management and technical personnel to produce drinking water. From the beginning of the construction of the factory to the start of production, the cycle will not exceed one year. The cycle is short, and the first phase of investment funds can be started as long as 3 million yuan, and the corresponding risk is small.

One of the characteristics of China's drinking water market is that the regional brand advantage is obvious, because water is an indispensable necessity in people's lives, price is one of the important factors affecting consumer behavior, and the transportation cost of water often becomes the bottleneck of the development of production enterprises, so scale production is crucial, in this sense, if you invest in China's drinking water market, enterprises must have enough capital to expand the scale of production and pursue economies of scale, including the establishment of branches.

China's average drinking water consumption per person per year about 6.5L, and the average U.S. consumer drinks 21 gallons (about 80 liters) of bottled water, Chinese citizens' drinking water consumption is less than 1/10 of the United States, Italy 120L / person 1/18, China's drinking water consumption market space is huge. Since 2000, China's drinking water has surpassed carbonated beverages to rank first in the production and sales of soft drinks with about 5.54 million tons, and is growing at a rate of 15 to 20% per year. It can be seen that there is huge room for investment and development in China's drinking water market.