Bottled Water Business Overview
Startup costs range from $500,000 to $1.5 million for a water plant. You need an FDA license. Initial investment ranges from Rs. 15-75 lakhs. People lack knowledge of licenses required, ending in failure.
Profit margin from small bottles is 15% and for large bottles 60%. If you sell 500 ml, 1 liter, and 5 liter jars, average profit is 10-15%. If 5 liter jars, average profit is 30-40%.
Business Set-Up and Operations
You can visit Bisleri website and submit details to apply for distribution. Get packaging materials. You can set up small plant with Rs 15 lakh or big plant with Rs 75 lakh investment.
Water can be purified using chlorine tablets, liquid chlorine or filtration. Chlorine is cheap and effective but use with caution when treating drinking water.
Profitability and Market Demand
Expenses impact profitability. Careful management of expenses optimizes earnings. Profit margins range 10-20%, depending on production costs, pricing and competition.
Select location with best water access, power, near marketplace. Key expense is water supply and storage location.
Industry Outlook and Outlook
The demand for bottled water is usually inelastic – people need water even if prices rise. The bottled water market is growing steadily as health-conscious consumers view it as a healthier choice than soft drinks. In 2020, bottled water outsold all other packaged drinks in the United States for the fifth consecutive year. A recent poll found that 90% of Americans want bottled water available wherever other drinks are sold.
The startup costs for a bottled water business begin around $750,000. You need an FDA license and state permits. Once the business is set up, the monthly profits can be significant. A successful water refilling business can make $40,000 in monthly profits.