If you’re looking to invest in a business with an adequate margin in profit, the bottled water industry is what you should be looking into. The industry is very flexible with its investment. You can start with small investments starting from $20,000 or larger ones going up to $150,000. Because we can choose to produce different bottled water types, there are many opportunities to grow this business. Moreover, for the coming years, the bottled water market can hold a healthy place.
For your answer, yes, in 2021, investing in a bottled water business will still be profitable and lucrative!!
The bottled water business is the production of drinking water within containers. The profit garnered from this business depends on different factors.
Including:
· the production of bottled water per day,
· evolving demands within the market,
· influencing economic trends.
To understand how this business works, let us drive deeper into its depths. I will discuss the business’s production plan first; then, we will observe its profit details. After that, we will analyze market needs and trends. Next, we will go over the environmental impacts caused by this industry. And finally, we will describe the steps to set up a plant and pass the final verdict. We hope this helps you in your future investment journey!
01.
Production Plan
For your business model, you will first have to research the current market trends. After finding a market opportunity, you will have to follow one of the two production plans. One is to produce more bottled water at a lower rate, and the other is to make less bottled water at a higher price point. Both plans will help maintain the amount of profit your business can earn[1].
There is an extensive range of bottled water types from which you can choose. Some of them as below, [2]
- purified water
- still water
- sparkling water
- distilled water
- mineral water
People will consume all these and more daily without fail. This is because they are safe bottled water types to create, as they are less likely to flop in the market.
You can also check niches within the market, as this will help your business grow better. You can reach for a smaller “test-audience” at the beginning of launching your product. (Hint: Your local area is a good starting point for market research!)
Last but not least is advertising! It would help if you were focusing on it the most after launching a product. This process helps in selling your product more.
02.
Profit
The profit can range from 100% to 500%, depending on the business plan you choose to follow [3]. Once you find a water source, you can have an unlimited supply of it. And the only expenditure will be on machinery and the area in which your plant will locate
03.
Market's Needs
Consumers have started to become more conscious of their health and time. Their preference is towards healthier drinking options available at their convenience. This is the reason why bottled water has replaced sugary drinks. These needs of the consumers will always remain, and hence the market is secure to invest. [4]
04.
Global Trends
Jon Conway says that bottled water usage has risen over 200% in the last two decades in his market analysis. Additionally, he discloses that sales have grown to 8% per year. The United States has the biggest market for bottled water. The still water production by private labelled brands amounted to $3.2 billion in sales in 2020. Next to that came Aquafina, owned by PepsiCo, with $1.09 billion in sales. And a close competitor to that came Dasani, which Coca-Cola owns, with $1.05 billion in sales. [5]
The bottled water industry has an increasing market of over $20 billion per year in the whole world. The rate at which it expands is around 10% in many countries. We predict that by 2023 the industry is to reach $334 billion of worth. Currently, Asia-Pacific is the largest market accounting for 33% market share. Europe comes after Asia-Pacific, which sits at 28% market share. [6]
05.
Bottled Water Business vs. Earth's Environment
NGOs and activists rally against the businesses which produce plastic bottles. They inform the public about the harms that plastic brings to the environment.
Companies stopped using plastic bags ever since the government had imposed bans. Yet, the production of plastic is still ongoing as plastic bottled water globally. For sustainability, some companies have reduced their plastic usage by changing bottle sizes. At the same time, others have opted to bottle their water into a glass or biodegradable bottles. Some have even have come up with schemes to recycle the bottles which the consumers provide to them.
06.
Setting Up A Plant
The plant needs to be large enough to have space for all the machinery, containers, and water supply. The proper steps to take as below [8],
- Finding the source of water
- Choose the right supplier for bottled water machinery
- Built or rent factory space for the bottled water production line.
- Set up the machinery for water purification, bottle blowing and bottle packaging production. [8]
The process of water treatment includes below systems[9]
- Coagulation Process: This process involves getting particles to merge to form big pieces.
- Reverse Osmosis Technique: The dissolved particles within water get removed using reverse osmosis.
- Sand Filtration: Undissolved impurities are collected by passing water from sand filters.
- Carbon Filtration: to remove the odour and colour of the treated water.
- Micro Filters: These filters remove the smallest of impurities, which can be as little as 5 to 0.4 microns.
- Ozone Treatment: Ozone is an excellent oxidizer. It eliminates viruses, bacteria, fungi, and other harmful substances living in the water.
- UV Filtration: This is the final step to disinfect water for it to have drinking quality. [9]
Besides the water treatment, large number of machinery is used for the process involved in the production of bottled water. Some of the machinery as below [9]
- PET Bottle Blow Moulding Machine: Reheat the PET preforms first, place them into a mould, and expand to form the mould shape with high-pressure air.
- Water Filling Machines: It fills the purified, filtered water into selected bottles.
- Bottle Labeling Machine: applying the label to the surface of the bottle.
- Bottle Shrink Wrap Machine: Use a polymer plastic film to cover bottle groups and shrink with hot air.
07.
Flowchart
Here is a flowchart of machinery that my company uses. Feel free to give us a visit on our website. From there you can even see the new products that we offer to our customers. [10]
08.
Conclusion
Many factors prove how bottled water is one of the most lucrative businesses to invest in. I hope we came of use to help you decide what’s best for you and your business or investment with our iBottling bottled water machinery. Good Luck!
09.
References
[1] https://www.waterbusiness.com/business-opportunities/
[2] https://www.healthline.com/health/food-nutrition/nine-types-of-drinking-water#tap
[3] https://howtostartanllc.com/business-ideas/bottled-water#:~:text=How%20much%20profit%20can%20a,and%20500%25%2C%20or%20more.
[4] https://www.startupinspire.com/blog/the-top-reasons-to-start-a-business-selling-bottled-water
[5] https://www.statista.com/statistics/188312/top-bottled-still-water-brands-in-the-united-states/
[6] https://www.wfmj.com/story/42521834/bottled-water-market-analysis-2020-global-industry-growth-analysis-by-overview-growth-share-top-companies-size-amp-growth-supply-demand-trends-demand
[7] https://impakter.com/business-bottled-water/
[8] https://makeinbusiness.com/starting-mineral-water-plant/
[9] https://startupwonders.com/how-to-start-a-mineral-water-business/
[10] https://mubu.com/doc/3-zLIID7wjj#o-Hs8gDfw89R
Please click below to watch the production process of bottled water production.
