The global water cooler market size was valued at USD 794 million in 2021, which is envisioned to reach USD 1,096 million growing at a CAGR of 4.10% during the forecast period. The water cooler is a system that provides chilled water, whereas older models of water coolers also offer hot and cold water. In water coolers, the cooling system is a gas that circulates throughout the pipes, which is also called a refrigerant. This refrigerant removes heat from the water, resulting in chilled water.
Additionally, water coolers can filter water. Moreover, the refillable water tank used by the bottled water coolers is filled with purified water. The rise in water cooler consumption in commercial institutions such as offices, colleges, and the hospitality industry is the primary factor driving the expansion of the global market for water coolers. The business expansion and rapid distribution of water cooler stores in local and regional markets are driving the development of the water cooler market. Increasing customer awareness of health and hygiene is driving the market growth of water coolers. In addition, in commercial institutions such as offices, colleges, and schools, individuals' health and safety are of the utmost importance. As a result, there is an increase in the installation of water coolers for safety, precaution, and health consciousness.
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Increasing Number of Private and Public Institutes Along with the Improvement in Retail Structure
Numerous new public/private institutions are a result of the expansion of the economy and population. New institutions are opening in the development and competition race, and market titans are widening their business connections and networks. Consequently, this increases the number of public and private establishments. The rise in educational institutions fuels the need for water coolers. As a result of the fact that these institutions are setting up water coolers to provide their clients and employees with purified drinking water, the global water cooler market is expanding.
Additionally, the retail channel is an essential component of the market in terms of sales and promotion. As a consequence of this, the retail channels are significant to the process of selling and distributing the product. The number of retail stores in the market for water coolers, including direct distribution, supermarkets and hypermarkets, and specialty stores, are on the rise. In addition, the proliferation of retail structures contributes to the greater availability of water coolers on the market.
Expensive Water Coolers to Hinder Market Growth
Water coolers are generally costly, negatively impacting their sales and market share. The water cooler's high price makes it unattainable to many customers. This prompts customers to seek alternatives, such as purchasing bottled water or boiling tap water to purify it. In addition, technological development and design innovation contribute to the price increase of the water cooler. In addition, the demand for water coolers is limited in rural areas. This is because the majority of income in rural areas is spent on necessities. Consequently, the rural market is impeded by the unaffordable cost of water coolers.
Growing Technological Advancements to Lift Market Opportunities
Manufacturers constantly introduce new products to remain competitive in the water cooler market. Introducing a new product is frequently accompanied by an improvement in quality and design and an increase in utility. In the global market, technological development plays a crucial role. Most manufacturers have increased their investment in product research and development in response to the emerging technological trend in the water cooler industry. As a result, the manufacturer can introduce new technologies to the market. Tri-temp technology, touchless operation, self-cleaning, RO, and UV are among the leading technologies in the water cooler market. Therefore, these technological advancements in water coolers improve water purification, impacting customers and increasing growth opportunities.
The global water cooler market is classified based on product type, application, distribution channel, and region.
Based on product type, the segments include bottled water coolers, bottle-less water coolers, and top load water coolers.
The segment of bottle-less water coolers is estimated to grow at a CAGR of 4.79% and hold the largest market share during the forecast period. The bottle-less water cooler is an apparatus that is directly connected to the water supply. After installation, it provides cold, purified water without needing bottles or refillable water storage tanks. In addition, regular use of a bottle-less water cooler necessitates routine maintenance and part replacement. Moreover, bottle-less water coolers are primarily employed for residential purposes. An enclosed and airtight water purification system is contained within the bottle-less water cooler. This reduces human contact and the risk of contamination of water significantly. Moreover, the bottle-less water coolers are easier to use and require less maintenance.
The segment of a bottled water coolers will hold the second-largest share. The bottled water cooler is among the most widely used water coolers for commercial and domestic applications. This type of water cooler utilizes refillable tanks that must be replaced frequently. Refillable tanks are often purchased from various agencies and businesses that manufacture and distribute them. The refill tank is handed to the location following the placement of an order. Most officers and institutions utilize this water cooler due to its accessibility and affordability. A robust network and quick delivery back the bottled water delivery services. As a result, the bottled water cooler is readily available and reasonably priced. In addition, it has a straightforward framework and does not require special installation skills. Furthermore, it takes less space, making it suitable for office and institutional use. Again, the plastic bottles used in bottled water coolers are reusable and eco-friendly.
Based on the application, the segments include commercial and residential institutes.
The commercial segment will most likely hold the largest share during the forecast period and grow at a CAGR of 3.30%. In commercial institutions, the use of water coolers is growing. This is since the office water cooler provides drinkable water. Previously, employees had to go outside to obtain drinking water, saving time and reducing effort. In addition, the water coolers offer hot and cold water to quench the thirst of office workers. Increased demand for water coolers is a consequence of the expansion of numerous commercial institutions. As the water coolers provide chilled, purified water that satisfies the need for drinking water at a suitable temperature, they fulfill a fundamental requirement for the commercial institutes' employees. The commercial institutions consist of workplaces, schools, and universities with high population density. In this scenario, water coolers are efficient and can be utilized by multiple individuals with minimal maintenance and repair. Consequently, these factors contribute to the growth in demand for water coolers in commercial institutions.
The residential segment will hold the second-largest share. This is because the water cooler's purified water keeps children and family members healthy and safe. Furthermore, the water supply in cities and towns is of poor quality. This results from the discharge of industrial waste on riverbanks and trash disposal in water bodies. Additionally, regular intake of tap water can be harmful to health. This increases water cooler usage. This is since water coolers purify drinking water. In addition, the water coolers offer both hot and cold water. This provides the customer with drinkable water at an appropriate temperature. Increases in disposable income, living standards, and urbanization contribute to the water cooler market growth in residential institutions.
Based on the distribution channel, the segments include direct distribution, supermarket/hypermarket, specialty stores, and E-Commerce.
The e-commerce segment will most likely hold the largest share during the forecast period and grow at a CAGR of 5.45%. In recent years, E-Commerce platforms have increased in popularity. E-Commerce platforms have a significant impact on manufacturing and distribution channels. As E-Commerce provides a virtual shopping experience that can be accessed from anywhere in the world, it is accessible worldwide. This improves the customer experience and encourages repeat visits to this platform. Blue Star Limited and Oasis International, two significant players in the global water cooler market, are investing in digitalization and online media because they recognize the importance of E-Commerce platforms. This is because interaction on E-Commerce platforms is increasing, providing companies with new opportunities. Consequently, this segment is anticipated to contribute significantly to the global water cooler market's expansion.
The supermarket/hypermarket segment will hold the second-largest share. A supermarket is a self-service store that sells various household items, foods, and beverages. The product lines in these stores are arranged by section, allowing customers to conduct a quick search. In contrast, the hypermarket combines supermarkets and department stores. Walmart, Fred Meyer, and Costco are examples of well-known supermarkets/hypermarkets. The supermarket/hypermarket domain distributes a vast assortment of consumer goods. This simplifies the accessibility of products such as water coolers. In addition, supermarkets and hypermarkets are becoming ubiquitous in urban areas. This facilitates the accessibility of the consequences for the customer. Thus, the supermarket and hypermarket's widespread presence generates lucrative growth opportunities for the water cooler market share.
The region-wise segmentation of the global water cooler market includes North America, Europe, Asia-Pacific, and LAMEA.
What is the outlook of the north american water cooler market?
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North America will hold the largest share during the forecast period and grow at a CAGR of 3.32%. There are numerous water cooler makers in North America, so there is fierce competition between them. The brands introduce new, technologically advanced products of superior quality to maintain their position in the water cooler business. Customers are influenced to purchase the latest water-cooler model by the improvement in quality and technological advancement. North American nations such as the United States and Canada are considered the developed and potential markets for water coolers. The United States is home to most water cooler producers, including Avalon Water Coolers, Brio Water Technology, Inc., and Blue Star Limited. In addition, technological advancements and the rising demand for chilled water in commercial establishments such as restaurants and cafes are driving the water cooler market growth.
Asia-Pacific will grow at a CAGR of 5.33% and reach USD 306 million during the forecast period. Asia-Pacific is a promising market due to the large populations of countries such as China and India. This helps contribute to the growth of the market for water coolers worldwide. In addition, the growing awareness and preference for hot and cold fresh water is another driver of the need for water coolers. The expansion of macroeconomic factors, such as urbanization and population, drives the development of the global market. There are multiple developing nations in the Asia-Pacific region, which gradually contribute to the expansion of the market. In addition, due to a large number of online customers in this region, online shopping platforms are expanding. In addition, Asia-Pacific contains numerous tropical nations, such as India and Sri Lanka, where demand for chilled water is rising. This presents an opportunity for Asia-Pacific water cooler market manufacturers.