NEWS | Industry Updates


UK water market shrinks in units, grows in value


The UK water dispense industry experienced a drop in unit placements in 2024, falling below 785,000 machines in operation, according to the latest UK Water Dispense Market report from Zenith Global Commercial. This decline reflects the market’s maturity,


the continued prevalence of hybrid working arrangements, and the impact of an unusually rainy summer that softened sales momentum. Despite the decrease in unit count, industry revenue rose by 8.5% to £191.9 million, driven by strong growth in integrated tap system (ITS) sales and higher


pricing in bulk bottled water supply. “2024 marked a year of resilience and value-led growth,” commented Zenith Global commercial consulting director Akos Petri. “While total unit numbers dipped, revenue performance was solid thanks to the sector’s ability to adapt with higher- value offerings and strategic pricing. Among other findings presented from the Zenith Global Commercial report: • The average bottled water throughput per dispenser was 793 litres, saving on plastic use by providing returnable and refillable bottles.


• The number of integrated tap systems has grown 22% in the past five years.


• Point of use for homes was the fastest growing segment in 2024.


Zenith Global forecasts a moderate


growth over the coming five years to 2029, taking the total number of water dispensers up to 803,000.


The Zenith Global UK Water Dispense


Report contains fully segmented market analysis with tables, charts and commentary including forecasts to 2029. For further information contact phillipa.clow@twha.co.uk


Consumers willing to pay more for biodegradable plastic – but it’s not enough


UK consumers are willing to pay more for water in biodegradable plastic bottles, but it’s not enough to cover the additional cost of manufacturing, finds new research from Corvinus University of Budapest. Professor Matthew Gorton from Corvinus University and the National Innovation Centre for Rural Enterprise, and colleagues, investigated how the type of packaging (biodegradable plastic or non-biodegradable PET), a charitable donation being made alongside purchase, origin (local or foreign), and price impact on UK consumers’ willingness to pay for bottled water. They also investigated the influence of consumers’ levels of nature relatedness and green consumption values on purchase. They found UK consumers are willing to pay more for


water in biodegradable plastic bottles, compared to non- biodegradable PET - up to 49p extra. “While consumers are willing to pay more for biodegradable packaging, at present the costs of biodegradable plastic packaging are similar to, or greater than, the average willingness to pay identified in the study,” says Professor Gorton. “It is difficult for manufacturers to pass on the full additional cost of biodegradable plastics to consumers


4 | vendinginternational-online.com


when switching from PET containers,” adds fellow researcher and associate professor Áron Török from Corvinus University.


As price was also found to be the most important aspect consumers consider when deciding whether to make a purchase or not, the expansion of biodegradable plastic hinges on cost-reducing innovations. As consumers’ level of nature relatedness increases,


indicating a connection with nature, biodegradable packaging becomes more preferable than non- biodegradable. However, higher levels of green consumption values, related to environmental concern when buying, are associated with opting out of purchasing bottled water altogether. While consumers tend to prefer local products and will


pay extra for them, the origin of water had a relatively modest effect on willingness to pay in this study. Therefore, companies must do more than just emphasise the localness of their product. Consumers were also more willing to pay for bottled water


if a charitable donation was being made with their purchase. These findings were first published in the Journal of Environmental Management.


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