How Much Do Water Bottle Companies Make?

Revenue and Growth

  • Revenue from the sales of bottled water: $61.326 million in 2020
  • Market growth annually by 10.9%

Production Process

  • Sourcing high-quality ingredients
  • Mixing and blending
  • Packaging into bottles or cans

Profitability

  • Normal profit margin: 50 to 200%
  • Producer revenue in the U.S. in 2018: $18 billion

Startup Costs

  • Minimum startup costs: $12
  • Maximum startup costs: $27,209
  • Average startup costs: $13,936

Environmental Concerns

  • Generates plastic bottle waste
  • Chemicals from plastic can leach into groundwater

Market Overview

  • Market size in 2019: $19.4 billion
  • Per capita consumption in 2019: 44 gallons
  • U.S. bottled water revenue growth nearly 6% annually

Bottled Water Industry

  • Bottled-water sales have boomed in recent decades
  • U.S. bottled-water volumes rose 4% last year

Cost of Starting a Bottled Water Company

  • Startup costs range from $750,000 to $1.5 million
  • Profits can exceed 100%

Sources of Bottled Water

  • Comes from municipal supplies or natural sources like springs
  • Sometimes is just tap water that’s filtered or has minerals added

Environmental Impact

  • Generates plastic bottle waste that pollutes landfills and waterways
  • Producing bottles also uses energy and emits greenhouse gases

Market and Profitability

  • Market size for bottled water was $19.4 billion in 2019
  • Companies like Nestle make billions in profit selling bottled water globally

Business Considerations

  • Low costs and high margins make bottled water lucrative
  • Meeting regulatory standards ensures product safety
  • Strategic partnerships help establish anchor customers

Future Outlook

  • Consumer demand drives the market
  • Environmental concerns remain despite profitability

Conclusion

  • As long as bottling is profitable, companies will continue pumping groundwater

Leave a Comment