Natural mineral water is a precious, scarce, and strategically important state-owned mineral resource. Mining requires a mining license in accordance with the law, and unlicensed mining is strictly prohibited. To protect water sources, a three-tiered (Level 1, Level 2, and Quasi-level) protection zone system is generally implemented for water sources.
In 2024, the Chinese natural mineral water market size is projected to exceed 21.3 billion yuan, with a year-on-year growth rate of 17%, higher than the overall growth rate of the packaged drinking water market. Market growth is driven by consumption upgrading, showing a trend towards high-end and segmented products. Per capita consumption of packaged water in China is lower than in countries like the US and Japan, indicating potential for future growth.
Representative international brands include Evian and Perrier from France. Major Chinese brands include Baishui Mountain, Nongfu Spring, Kunlun Mountain, Laoshan, and Quanyangquan, among which Baishui Mountain holds a significant market share domestically. New entrants to the market in recent years include Dongfang Zhenxuan and Pangdong's self-operated mineral water.
Jilin's Changbai Mountain, along with the Alps and Caucasus Mountains, is a globally important source of mineral water, having formed a mineral water industry cluster that drives local employment and economic growth. Shandong's Laoshan Mountain leverages its long-standing mineral water resources to develop its industry. Other regions, such as Arxan in Inner Mongolia, utilize their mineral water resources to develop health and wellness tourism.
Industry standards are constantly being improved; for example, Thailand plans to revise its natural mineral water standards in 2024-2025. The development of the industry requires a balance between development and protection, emphasizing the importance of scientifically setting extraction volumes, reserving sufficient ecological flow, and strengthening source water protection. International brands have experienced quality and compliance controversies, such as the Perrier incident, serving as cautionary tales for industry regulation.
