Conglomerates Control Bottled Water Market
By Kim Hyun-cheol
Staff Reporter
Big conglomerates are competing to jump into the growing domestic bottled water market, which is estimated to be worth 440 billion won ($355.8 million). The market has grown by three times over the past 10 years.
The current market leader is Nongshim, followed by Lotte Chilsung Beverage, a drink affiliate of the Lotte Group that is collaborating with the Military Mutual Aid Association (MMAA).
Lotte will disclose next week a new brand of bottled water produced at an MMAA-built factory in northern Gyeonggi Province. With a daily production capacity of 480,000 2-liter bottles, the 67-billion-won plant is the largest bottle factory in the country.
Nongshim accounts for over 40 percent of the market, or 124 billion won, with its best-selling Samdasoo brand. Lotte Chilsung ranks second at 66 billion won, with Jinro following at 58 billion won.
CJ Cheiljedang has just launched its refurbished Ulleung Minewater brand with an overhauled design. Coca Cola is set to unveil a new brand, Jeju Vio Water, bottled in a facility on the southern island.
The SK Group has also plunged into the water war. Its affiliate, SK Gas, launched the SURE product last month, collected from deep-sea springs near Ulleung Island on the East Sea.
Nongshim has recently decided to raise its annual production to 400,000 tons and expand its sales network to around 200 stores across the country.
The market still has potential for further growth, industry watchers say.