Every day it seems like we have to pivot to keep up with the challenges brought on by COVID-19. All this pivoting may be making you feel uncertain about your business and its prospects for the future.
Well, we have good news! Although 2020 has been an unprecedented year for industry change and demands in the water industry, the demand for clean drinking water remains a high priority for consumers worldwide.
And if you have chosen to nurture a POU business plan, you have made a great decision. Why? Zenith Global has predicted that POU will overtake BWC in 2021.
The Benchmark for Excellence
If you aren’t familiar with Zenith Global, their food and drink expertise has helped multinational and innovator companies grow faster for more than 25 years, and they:
- Offer both commercial and technical specialists
- Give advice based on profound market knowledge
- Share operational experience to refine strategic direction
- Develop long term partnerships for client expansion
They also produce reports considered the benchmark for excellence by the dominant companies in the sector and host industry-leading events. These events:
- Review current consumer trends
- Provide detailed market insights
- Explore the latest product innovations
- Offer unrivaled networking opportunities
What’s in the Report?
According to their 2020 report, Plastic has become a growing challenge for the water industry. During 2019, Zenith Global found more end-users were looking for products that helped them decrease reliance on single-use plastics, which means a reduced reliance on bottles.
“Bottled water dispensers add more value because they involve bottle sales as well as unit rentals,” explained Richard Hall. “Plastic, however, is a growing challenge for the industry.
“Water dispenser bottles are re-used many times, and that brings environmental advantages. Single-use plastic cups are cheaper than compostable or refillable alternatives. Refillability has become an important new feature of the dispense market over the past two years.”
Let’s face it; there will always be a need for bottled water companies. Bottled water can go to many places and fulfill a variety of needs that POU can’t.
However, there is still a considerable amount of bottled water companies used in situations where they could easily be replaced with POUs. Add to that the increased focus on protecting the environment and reducing single-use containers, and you have a decrease in bottle usage.
This is excellent news for companies that have shifted their focus from bottled water to POU systems. The report even predicts by 2024, the water dispenser market will have grown to 950,000 units.
More Working From Home
There may be a glitch in their predictions, however. COVID-19 has shut down businesses all across the US and UK, which means more people are working from home.
Many businesses have even decided to permanently transition their business models to remote ones, which means fewer companies will need POU systems onsite.
Because 71% of all POU systems in the US are located in businesses, this will impact POU sales. But it will also affect bottled water sales because 64% of the market also relies on companies.
We will have to wait and see how coronavirus impacts market predictions. But the bright side is that the report predicts that “most water dispense units are in places of work and that could lead to a dip in 2020 before growth resumes.” So, if you experience a dip, take heart, growth will resume.
We’re in This Together
In an industry statement, Water Dispenser and Hydration Association (WHA) Chairman Jon Wicks said it succinctly:
“COVID-19 is causing widespread illness and hardship in the UK/US and throughout the world. However, proper hydration remains essential to us all. Members of the Water-dispenser & Hydration Association continue to provide customers in the food supply chain and key industries with safe and hygienic water, albeit with strict delivery protocols. The WHA continues to monitor the situation and will provide members with support both now and in future months.”
We’re here to support you and your POU business in whatever way we can. Whether you need high-quality products, invaluable customer service, or guidance from our online articles, we’ve got you covered! Stay healthy, and stay hydrated!