Expensive Water? Lower Prices Win as Top Bottled Water Brand Sees Revenue Drop

The long-standing leaders of the domestic bottled water market are now facing challenges. Jeju Samdasoo, the number one player in the industry, saw its sales decline for the first time in about a decade since being commissioned for sales by Kwangdong Pharmaceutical. As consumers increasingly turn to inexpensive private brand (PB) bottled water, Jeju Samdasoo is gradually losing ground in market competition.

Jeju Samdasoo sees first sales drop in 12 years... Last year, 318.3 billion won, down 0.4%

According to the electronic disclosure system on March 24, Jeju Samdasoo’s sales as reported by Kwangdong Pharmaceutical last year amounted to 318.3 billion won, down 0.4% from the previous year. Kwangdong Pharmaceutical has been in charge of Jeju Samdasoo’s sales since 2013 and successfully renewed its sales license last September, allowing it to sell Samdasoo until 2029.

Yonhap News Agency

This is the first time in 12 years that Jeju Samdasoo has recorded a decline in sales since Kwangdong Pharmaceutical took over the sales commission. When Kwangdong Pharmaceutical first took charge in 2012, Jeju Samdasoo’s sales were 2.3 billion won, which surged to 125.7 billion won in 2013, surpassed 200 billion won in 2019, and exceeded the 300 billion won mark in 2023.

Jeju Samdasoo. Provided by Jeju Development Corporation

Jeju Development Corporation, which manufactures Jeju Samdasoo, stated in a comprehensive audit report released in December last year that sales volume of Samdasoo products decreased by 1.5% from 2023 to 2024, causing sales to drop from 344.1 billion won in 2023 to 333.7 billion won in 2024. Since Jeju sales are not included in Kwangdong Pharmaceutical’s license, the sales figures of Jeju Development Corporation, as the manufacturer, may differ somewhat, but the overall trend of declining Jeju Samdasoo sales remains the same.

No. 2 and 3 players, Isis and Baeksansu, also showing decline... Market landscape shifting

Industry experts suggest that this may signal the beginning of a shift in the market landscape. According to the industry, Jeju Samdasoo holds a 40% market share, making it the leading bottled water brand in Korea. Isis ranks second with a 13% share, and Baeksansu is third at 8%. Considering that Jeju Samdasoo has maintained an overwhelming market share for nearly 30 years, this sales decline is unprecedented.

Isis, produced by Lotte Chilsung and ranked second in the market, has also seen its sales decline. Last year, Lotte Chilsung reported that sales of Isis and other bottled water products totaled 213.7 billion won, down 7.8% from the previous year. The company’s bottled water sales have continued to decrease since 2022, when sales reached 261 billion won.

Baeksansu, produced by Nongshim and holding the third position in the market, is also experiencing a downturn in sales. Yanbian Nongshim Gwangcheon Beverage Co., Ltd. (Yanbian Nongshim), which is focused on Baeksansu as its core business, saw sales drop from 69 billion won in 2022 to 66.8 billion won in 2023, 61.2 billion won in 2024, and then plummet to 44 billion won last year-a 28.1% decrease from the previous year. Baeksansu’s production volume at Yanbian Nongshim also declined steeply from 238,000 tons in 2024 to 157,000 tons last year, marking a drop of more than 30% in just one year.

Bottled water market still growing... Squeezed by PB products and ultra-compact water purifiers for single-person households

The domestic bottled water market has shown steady growth over the past 30 years since commercial sales were permitted in 1994. According to Euromonitor, the size of the Korean bottled water market reached a record high of 3.1761 trillion won as of 2024-more than five times its size a decade ago. As of July last year, the Ministry of Environment reported there were 59 bottled water manufacturers nationwide. However, despite the overall growth in market size, the top three companies are all experiencing a decline in performance.

A bottled water industry official said, "It seems that sales of premium bottled water have declined due to the influx of inexpensive private brand products."

They also explained, "The launch of ultra-compact water purifiers tailored for single-person households is also having a negative impact on the bottled water market."

Coway Icon Ice Water Purifier Mini. Provided by Coway

The official added, "It is expected that the price competitiveness of low-cost PB products will now directly compete with the quality competitiveness of premium brands in the bottled water sector."