Over the past few decades, the bottled water market has expanded quickly as customers looked for a handy, portable, and nutritious substitute to sugary drinks. But according to recent statistics, bottled water sales may be dropping.
Beverage Marketing Corporation reported that the United States’ bottled water sales increased by just 2.4% in 2019, which was the weakest rate of growth in the previous five years. This contrasts with the double-digit growth rates the sector has previously experienced. The research also revealed an increase in the sales of other beverages and carbonated soft drinks.
The decreasing sales of bottled water may be due in part to growing environmental consciousness. Reusable water bottles are becoming increasingly popular among customers as single-use plastic is being actively discouraged. Refillable water bottles have become more and more popular as a result of this change in consumer behavior because they are economical and environmentally friendly.
The growth of the home water filtration sector is another factor affecting the fall in sales of bottled water. A less expensive and more environmentally friendly option to bottled water, water filtration systems are being purchased by more and more homes.
Can you fill your own water bottles then? You can, is the response. It is crucial to remember that your water’s quality could not be as good as that of commercially packaged water. This is because bottled water businesses must adhere to stringent laws and standards in order to guarantee the security and caliber of their goods.
Companies that sell bottled water do manufacture their own bottles, and they have come under fire for adding to the global plastic waste problem. However, a lot of these businesses have made efforts to lessen their environmental impact, including utilizing eco-friendly packaging and employing recycled materials more frequently.
Bottled water sales are still declining, but the sector is still profitable. IBISWorld estimates that the market for bottled water in the US is valued $18.5 billion, with a profit margin of 12.1%. This is brought on by the huge markup on sales of bottled water and the relatively low cost of production.
In conclusion, a number of variables, such as the popularity of home water filtration systems, the rise of reusable water bottles, and growing awareness of environmental issues, can be blamed for the fall in bottled water sales. Although the bottled water industry is still profitable, there is growing pressure on businesses to find more sustainable solutions and lessen their environmental impact.
Yes, the Bisleri company is successful. However, a number of variables, including production costs, marketing tactics, rivalry, and customer demand, affect a company’s profitability. Before beginning any business, even one in the bottled water sector, it is crucial to undertake market research and analysis to assure profitability.