Brain Scramble

How Competitive Is The Bottled Water Industry?

According to IBIS World, the bottled water industry came in just under 7 billion dollars and is expected to maintain its slow and steady increase every year.

Meanwhile, reports on municipal water keep getting worse. As more of us are turning away from water coming directly out of the tap, we are turning to bottled water more often.

This industry is competitive and demands determined forward thinkers. Does that sound like you?

If you are a future business owner that is interested to learn more about the bottled water industry, read on!

Top Water Companies

More often than not, we are on the go, which causes us to buy bottled beverages because they are convenient. You may not know it, but the top-selling brands of bottled water are owned by soda companies and even candy manufacturers.

What about a company that focuses solely on water? That’s where a small business like yours come in. Though major companies reach more consumers than most small companies can, do not let that discourage you from starting a bottled water company.

Tough Competition

Can a small company compete with big companies such as Pepsi-Cola, Coca-Cola, and Nestle? How are consumers choosing which water bottle to buy when there are a dozen different ones on the shelf in front of them? While brand recognition does play a part, eye-catching labels and honest effort goes a long way.

Many people turn away from large companies to support small brands and private label bottled water. Don’t think of it like competing with large conglomerates, you are only in competition with yourself.

Pure Packaging

Plastic may have its perks, but over the past few years, it has undergone a huge transformation when it comes to food and beverage packaging laws. The FDA and EPA have banned plastic used for bottled water and other beverages made with BPA (Bisphenol-A). Bottles are now commonly made with PET (polyethylene terephthalate).

Additionally, plastic one-use water bottles are being made with small caps and smaller labels. Rarely will water be bottled in glass. Glass is more common for carbonated water.

Profit Margins on Bottled Water

You may have already done your research to find out how much money you could make from selling bottled water. Even if you sell the best product, in the best packaging, with the best marketing, you can still make a pretty penny. Bottled water is a great market to invest in.

The profit margin on bottled water is 50%-200%!

Straight, Flavored, or Enhanced H20?

As the market demands healthier products, especially beverages, we are seeing more vitamin and mineral enhanced water and naturally flavored water rather than artificially colored and flavored products.

Plain water is still a better seller than enhanced products, as it is used as a base for preparing baby bottles and cooking. It’s also the preferred form of drinking water.

Getting Started

So, after absorbing all of this information, you are probably feeling like you are ready to get started. What is the first step? Contacting a water bottling line is a great place to start!

Startup prices for a small production company are fairly low compared to the profit margins. Items you will need to focus on include branding, labels, bottles, product, and marketing.

Bottled Water Industry

Starting your own bottled water company is a wise investment. As long as you take the proper steps, you could be on your way to bottling great water and making the big bucks in the bottled water industry! Make a name for yourself by tapping into nature’s greatest gift: water.

Brain Scramble is where the web comes to learn about this subject and others that can help support your future. Feel free to check out more of our posts.