Top 7 brands dominate 97pc bottled water market

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Muhammad Ayub Ali :

The bottled water market in Bangladesh is growing by 15-20 per cent annually, driven by urbanisation, rising health awareness, and the increasing adoption of wellness trends despite the high price of bottled water.

Growing public awareness around waterborne diseases, along with lifestyle changes in both urban and rural areas, are also contributing to market expansion.

Despite the high profitability of bottled water, large conglomerates dominate the market in Bangladesh.

According to the Bangladesh Standards and Testing Institution (BSTI), around 232 companies, in which 50 produce bottoled water, are registered to produce and market bottled water, though just seven leading brands hold 97 per cent of the market share.

BSTI data reveals the top companies as Fresh (24.17 per cent), Pran (17.76 per cent), Aquafina (16.88 per cent), Mum (16.44 per cent), Spa (13.81 per cent), Kinley (4.16 per cent), and Jibon (4 per cent).

The Bangladesh Competition Commission (BCC) recently reported that several leading manufacturers inflated the prices of half-litre bottles, earning profits up to 420 per cent above production costs.

In response, the BCC has filed lawsuits against Coca-Cola Bangladesh Beverage, Transcom Beverage, Meghna Beverage, Partex Beverage, Rupshi Foods (City Group), Akij Food & Beverage, and Pran Beverage Limited for profiteering.

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According to Engineer A. Matin Chowdhury, former president of the Association of Bangladesh Mineral and Purified Drinking Water Manufacturers, the bottled water market is valued at over Tk 1,000 crore, with an annual demand of approximately 40-42 crore litres.

However, the Competition Commission’s review shows that around 55.25 crore litres of bottled water were sold in the fiscal year 2021-22, with 40 crore litres sold as of January 31 in the fiscal year 2022-23.

A Matin, also the owner of Aqua Mineral Water, noted that bottled drinking water is increasingly viewed as essential, driving market expansion.

Kamruzzaman Kamal, Director of Marketing at Pran RFL, added that consumer health concerns, changing lifestyles, and rising purchasing power are boosting bottled water demand.

While half-litre bottles are the most popular, there is also significant demand for two-litre bottles. Nearly 40-50 per cent of bottled water consumption occurs in Dhaka, Narayanganj, and Gazipur, with Dhaka-Chattogram and Dhaka-Sylhet highways as secondary high-consumption zones.

Md. Muzibur Rahaman, head of FMCG at Fresh, reported an average 15 per cent annual growth in bottled water sales, with hotels, motels, restaurants, and tourist spots serving as major distribution hubs.
Bottled water became popular in the 1990s when it was initially seen as a luxury.

Over the past three decades, it has become commonplace, even in rural markets where it is now widely served at gatherings, parties, and social occasions.