Water Dispenser Market Size, Share & Trends Analysis Report By Product (Bottle And Bottle-less), By Application (Residential, Commercial, And Industrial), By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global water dispenser market size was valued at USD 2.48 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 8.9% from 2022 to 2030. Product demand is being driven by factors such as portability, ease of use and installation, and low maintenance costs. Drinking water scarcity in several regions necessitates robust sources to meet the rising demand for safe drinking water, resulting in increased product sales and, as a result, market growth. The COVID-19 pandemic has brought about a seismic shift in consumers' attitudes toward wellness and health safety. The infrared sensor dispensing is gaining high traction as direct human contact is reduced. For instance, the Quench Q8 water dispenser operates on touchless sensor-activated dispensing to deliver instant hot and cold water.

The versions which are economical and functional are expected to be highly preferred in the market in recent years. Ecommerce platform vendors are actively developing new techniques to increase their sales in the global water technology market. As consumers become more aware of water-borne diseases, players are prioritizing multi-stage filtration, with RO and UV as major techniques, which can be profitable because they are more effective than other methods of water filtration.

Leading manufacturers' promotional campaigns also help to drive the market. Low maintenance requirements, as well as after-sales services provided by manufacturers, help to drive product demand. Furthermore, the availability of a variety of products, such as top load and wall-mounted, with direct plumbing features and simple cleaning processes will drive up demand even further.

On the other hand, frequent product replacement or component replacement, as well as additional expenses during peak summertime, may have a negative impact on market growth. However, rising water pollution levels and increased purchasing power of consumers will support product demand.

Key players are taking the necessary steps to improve the accuracy and overall functionality of the devices. For instance, in 2021, Quench's new product line of touchless hydration solutions, dubbed the Quench Q-series, offers sensor-activated, touchless dispensing for health-conscious businesses and is the first of its kind to be available in the United States and Canada. QuenchWATER+ is produced by all Quench Q-Series options, and it employs a proprietary 5-filter setup to add electrolytes and improve the taste by removing sediments and contaminants. The result is electrolyte water that is crisp, clean, and delicious.

Product Insights

The bottled product segment accounted for more than 70% of the market in 2021 and is expected to remain dominant throughout the forecast years. The primary factor driving the segment is the rising demand for bottled water. Furthermore, lower initial costs, as well as ease of installation and low maintenance requirements, are likely to boost product demand.

However, the bottle-less product category is expected to grow at the fastest rate of 9.9% between 2022 and 2030. Such products do not necessitate the loading and unloading of water bottles on the machine, which is a significant factor driving the segment growth. These products are directly connected to water pipelines and can thus be used continuously without the need for water bottles. These products are mainly used in hotels, restaurants, etc.

Application Insights

In 2021, the commercial application segment dominated the global market, accounting for the lion's share. The rise in demand for continuously clean water supply in commercial spaces is driving the segment. Furthermore, the lack of direct water sources in several commercial buildings will increase product demand in this segment.

From 2022 to 2030, industrial application is expected to be the fastest-growing segment. The increased use of water purification products in the industrial sector, particularly in developing countries such as China and India, is attributed to the lack of fresh and clean water sources. 

End-Use Insights

During the forecast period, the hospitality sector under the commercial application segment is anticipated to grow at the highest CAGR, 9.9%. A water dispenser is a great addition for those in the HORECA (hotel, restaurant, and café) industry that are looking to boost their revenue, service value-add, convenience, sustainability, and more. As per a blog by GFS Innovation PTE LTD, in 2020, there has been a surge in demand among Singapore restaurants for still and sparkling water dispensers. Rather than drinking sweetened beverages, it is advised to restrict daily sugar intake to 8 to 11 teaspoons from beverages, juices, and other processed foods. According to the Ministry of Health, the average Singaporean consumes an incredible 12 teaspoons of sugar every day. Switching to water is the best alternative to sweetened drinks due to growing consumer awareness and encouraging a healthy lifestyle. Even though still and sparkling water has no sugar and no calories, they taste just as pleasant and satisfying.

Distribution Channel Insights

The retail store segment held the largest share of 42.60% in 2021. Easy availability of dispensers, assistance with product specifications, and excellent customer services are some of the factors popularizing the sales of water dispensers through the retail channel.

Consumers in the market are preferring purchasing dispensers from online sales channels owing to the availability of a wide range of products, greater discounts, and ease of delivery. These benefits have resulted in the shifting consumer buying preference from offline to online stores and this trend is anticipated to continue during the forecast period. Growth in e-commerce owing to the wider distribution network and product availability generates significant opportunities for market players and this has influenced manufacturers to sell their products through online channels. E-commerce giants like Amazon and Alibaba are some of the major sellers of water dispensers for commercial spaces. 

Regional Insights

Due to the growing demand for advanced home appliances in countries such as the United States and Canada, North America is expected to create opportunities for regional markets during the forecast period. Furthermore, the presence of leading manufacturers such as Honeywell, Culligan International Company, and Whirlpool Corp. increases product sales, fueling the regional market growth.

Due to rising demand for water purification sources and appliances in countries such as China and India, Asia Pacific is expected to have the highest CAGR of 11.0% from 2022 to 2030. Consumer appliances in India is expected to grow at a healthy CAGR during the forecast period. The increased purchasing power of consumers in APAC's developing countries will drive up demand even more. Furthermore, many international firms are entering the regional market with technologically advanced products. This is also likely to contribute to market growth in the coming years.

Key Companies & Market Share Insights

Key players operating in the market account for a considerable market share and have a strong presence across the globe. The market also comprises small-to-midsized players, who offer a selected range of water dispensers and mostly serve regional customers.

The impact of these established players on the market is quite high as most of them have vast distribution networks across the globe to reach out to their large customer base. The key players operating in the market is focusing on strategic initiatives such as product launches, acquisitions, collaborations, participation in events, and expansions to drive revenue growth and reinforce their position in the global market. Some of the recent key developments and strategic initiatives carried out by water dispenser manufacturers have been listed below:

• For instance, in September 2020, Aquaverve, North America's premier water cooler manufacturer, announced the launch of its touchless water cooler line. These water coolers were designed in response to the need to promote safer conditions for consumers and businesses in the wake of the coronavirus pandemic. They developed two models of touchless water coolers - the Oceanik Touchless Bottleless Cooler and the Pacifik Touchless Bottleless Cooler. The Pacifik model is available in both bottled and bottleless configurations. 

• In April 2020, Waterlogic Holdings Limited announced the closing of the acquisition of a significant minority stake in the company by four strong institutional investors, namely British Columbia Investment Management Corporation (BCI), Neuberger Berman, StepStone, and Skandia. This acquisition provided the company access to capital through which it can accelerate its growth to become the global leader in the fast-growing market for bottle-less workplace hydration.

Some of the key players operating in the global water dispenser market include:

• Whirlpool Corporation

• Primo Water Corporation (formerly, Cott Corporation)

• Honeywell International Inc.

• Culligan International Company

• Clover Co. Ltd.

• Waterlogic Holdings Limited

• Midea Group Co. Ltd.

• A.O. Smith Corporation

• Edgar’s Water 

Water Dispenser Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2017 to 2030. Grand View Research has segmented the water dispenser market based on product, application, end-use, distribution channel and region

• Water Dispenser Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Bottled

  • Bottle-less

• Water Dispenser Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Residential

  • Commercial

  • Industrial

• Water Dispenser End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • Commercial

    • Hospitality

    • Transport Terminal

    • Institutions

    • Corporate Offices

    • Others

  • Industrial

    • Food & Beverages

    • Healthcare

    • Others

• Water Dispenser Distribution Channel Outlook (USD Million, 2017 - 2030)

  • Online

  • Retail Store

  • Non-Branded Store

• Water Dispenser Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • Central and South America

    • Brazil

  • Middle East and Africa

    • South Africa