During the traditional peak sales season for beverages, the bottled water market has been the first to signal price adjustments. Wahaha and C'estbon have both issued notices to distributors in multiple regions, raising wholesale supply prices for certain water products, with the core reason attributed to the continuous increase in raw material costs, particularly PET packaging. Unlike previous price hikes that affected the entire supply chain, this adjustment is limited to the wholesale stage, with retail prices at the end consumer level not yet seeing a widespread increase. The cost pressure is being passed along internally through the industry chain.

According to price adjustment notices disclosed by distributors, starting July 1, the supply price of Wahaha's 596ml bottled purified water will increase by 0.5 to 1 yuan per case (24 bottles), while C'estbon's 18.9L barrel water will see a supply price increase of 1 yuan per barrel. Wahaha later publicly responded that the adjustment involves both increases and decreases for different product specifications at the wholesale level, aiming to ensure stable operations for distributors. The retail price for all purified water products will remain unchanged, and consumers' purchase prices will not be affected.

Behind the price adjustments lies the steady surge in PET packaging material costs. Data from the Chemical Business Network shows that since the start of 2026, the price of domestic water-grade polyester bottle chips has been volatile but trending upward, with cumulative gains exceeding 40% for the year. In April, spot prices once surged above 9,000 yuan per ton, and although they have fluctuated and fallen somewhat in July, they remain at a high level overall. As the core raw material for beverage bottles, PET bottle chips account for 80% of the production cost of the bottle itself. For bottled water companies, packaging materials represent the largest cost item. Industry public estimates indicate that PET material accounts for over 30% of sales costs at leading water companies. A 30% increase in PET prices directly reduces industry gross profit margins by 3.7 to 4.5 percentage points, dealing a particularly heavy blow to the already thin-margin bottled water category.

The source of this round of cost increases originates from the upstream petrochemical chain. Fluctuations in international crude oil prices, compounded by geopolitical factors, have pushed oil prices higher, transmitting upward pressure along the industrial chain. This has driven up prices for petrochemical raw materials like PTA and ethylene glycol, ultimately raising the procurement cost of PET bottle chips. When PET prices fell in 2025, the industry broadly enjoyed significant cost dividends. However, with the sharp rebound in bottle chip prices this year, the previously released profit margins are being squeezed, placing notable pressure on corporate earnings.

Notably, this round of cost pressure has not yet been directly passed on to consumers. In offline channels such as supermarkets and convenience stores, the retail price of mainstream bottled water remains at the conventional level of 2 yuan per bottle, with some promotional channels offering even lower unit prices. Industry insiders analyze that current beverage end-demand is generally weak, with fast-moving consumer goods retail monitoring data showing a year-on-year decline of over 11% in offline beverage sales during the second quarter. Consumers are highly price-sensitive, and companies are reluctant to raise retail prices for fear of losing market share. Under the pressure of weak demand, the cost burden is being absorbed more at the distribution channel level.

From an industry-wide perspective, beyond PET packaging, costs for items such as white sugar, logistics, and labor are also rising to varying degrees. Beverage companies are facing a dual challenge of higher costs and weaker demand. As the summer peak season is currently underway, the future trajectory of packaging material prices and the recovery of end-market sales will directly determine whether this cost pressure will be further transmitted to consumers, and will also shape the overall profit landscape for the industry in the second half of the year.