The sector for bottled water is very successful. The global market for bottled water, which was estimated to be worth around USD 217.2 billion in 2020, is expected to increase at a CAGR of 4.6% from 2021 to 2028 to reach USD 307.2 billion. These numbers show that the bottled water industry is a successful one, generating considerable earnings for water bottle manufacturers.
The Bottled Water Industry’s Future
The bottled water market appears to have a promising future. The increased health consciousness among consumers, the convenience of bottled water, and the difficulty finding clean drinking water in some locations are some of the factors contributing to the rising demand for bottled water. The market is also anticipated to expand as a result of expanding urbanization, disposable income, and population growth in developing nations. Environmentalists and customers who are worried about the effects of plastic trash on the environment could provide problems for the sector, though.
Value of the Bottled Water Sector in 2021
The value of the bottled water sector is always rising. A rough estimate of the industry’s value in 2021 is USD 240 billion. With a projected 14.4 billion gallons of consumption in 2020, the United States will continue to lead the world in bottled water consumption. The consumption rates in China, Mexico, Brazil, and Indonesia are also high.
Factors Contributing to the Rise in Bottled Water Demand
There are various causes for the rising demand for bottled water. First off, people tend to believe that bottled water is safer and cleaner than tap water. Furthermore, bottled water is practical and easily accessible. Third, bottled water is lightweight and portable, making it simple to transport. Fourth, bottled water is the only practical option for those who lack access to safe drinking water. To avoid the toxins and contaminants found in tap water, many people who care about their health opt to consume bottled water. The Price of Building a Pure Water Factory
The price to build a pure water factory varies based on the factory’s size, location, and equipment, among other things. A small-scale pure water production, however, may cost between $10,000 and $50,000. The price of a larger factory can reach several million dollars. When establishing a pure water factory, the cost of labor, raw materials, and marketing should also be taken into account.
The bottled water market generates considerable income for the manufacturers of water bottles. The sector is anticipated to keep expanding as a result of factors such rising urbanization, disposable income, and population growth. Environmentalists and customers who are worried about the effects of plastic trash on the environment could provide problems for the sector, though. The ease, security, and health advantages of bottled water contribute to its rising popularity. Finally, while establishing a pure water plant can be expensive, it can eventually be a successful commercial enterprise.
By obtaining water from diverse natural sources, purifying and filtering it, and then bottling it in plastic bottles or other containers, water enterprises can generate revenue. After that, they resell these bottles to customers at a premium price, frequently portraying the water as a high-end good. Many water companies also sell branded or flavored water products, which can fetch even higher costs. In order to increase their market share and draw in more customers, they invest in marketing and advertising. Due to the huge demand for clean drinking water and the convenience of having it available in portable containers, the bottled water industry is, overall, a very profitable one.
By buying water in bulk from a supplier and selling it to clients for more money per gallon, water retailers are able to generate money. For a price, they could also provide supplementary services like water filtering, bottle refills, and delivery. To boost their revenues, some water retailers might also offer other goods like water bottles and dispensers.