Saturday, April 7, 2012

One water bottle or a billion dollar industry

Bottled water consumption has matured exponentially over past fifteen to twenty years. This growth has taken place internationally, but particularly in Europe and North America. Once found mainly at railways stations, mineral water, today occupies places on the shelf  in superstores and grocers. With a compounded annual rate, the mineral water market has witnessed, close to 30% growth over the last decade in terms of volumes. When one enters in a grocery store or a restaurant in, he or she is bound to find at least a few different brands of bottled water.

The Mineral water industry in developing countries is cultivating at 40 %. Many countries have become exceptionally oriented toward bottled water, over the period of time. For an example, according to a 2001 World Wildlife Fund survey, individuals around the globe consume some 89 billion liters of bottled water annually, worth roughly $22 million while United States alone consumes about 13 billion liters. It is estimated that the worldwide consumption of bottled water is nearing 200 billion liters - sufficient to satisfy the daily drinking water need of small developing country’s population. Over the last ten years, this industry witnessed tremendous growth. Consumption of bottled water varies across regions and is primarily linked to the level of prosperity.

Bottled water industry

'Dirty Water Bomb' Campaign by Unicef, an initiative to educate value of purified water 

The formal bottled water business can be divided broadly into three segments, in terms of the price tag: premium mineral water, natural mineral water and packaged drinking water. For reference, packaged drinking water is water from any source that is treated for consumption while Natural Mineral water is drawn from a natural underground source. 

Consumption of bottled water in a developing country is linked to the level of prosperity in the different regions. The western region accounts for 40 % of the market and the eastern region just 10 %. In developing nations, most small-scale producers sell non-branded products and serve small markets. Mineral water business is restricted only to big hotels & Restaurants, in such geography. Nevertheless, market leaders are trying their level best to make Mineral water necessity of common man. 

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