Revenue from the sales of bottled water amounts to $61.326 million in 2020 so far. The market is expected to grow annually by 10.9 percent ( 2020-2023). In 2019, per capita of bottled water consumption approached 44 gallons, while average intake of carbonated soft drinks dipped below 37 gallons. Sales revenues for the U.S. bottled water market in 2019 were $19.4 billion in wholesale dollars, a 5.6% increase over the previous year.
The production process involves sourcing high-quality ingredients, mixing and blending them, and then packaging them into bottles or cans. The normal profit margin on bottled water is an astounding 50 to 200%. It’s actually pretty easy to make money selling bottled water. You can usually charge between $1-$2 per bottle. Depending on the price you want to charge and the profit you want to make per bottle you could be making up to $75/hr selling bottled water.
How profitable is the bottled water business? The normal profit margin on bottled water is 50 to 200%. In 2018, producer revenue of bottled water in the United States was $18 billion. The market is growing annually by 10.9%.
Bottled water comes from a variety of sources, including many of the same sources as tap water. Sometimes the water you can buy in a bottle is simply public tap water that has been enhanced in some way, such as changing the mineral content. The addition of millions of tons of slowly decomposing plastic bottles to our landfills is causing them to fill up rapidly. As the plastic slowly breaks down over hundreds of years, toxic chemicals are released which can cause groundwater contamination.
What does it cost to start a bottled water company? Startup costs range from $750,000 to $1.5 million. Costs include licensing, permitting, equipment, and initial inventory. Profits can exceed 100%.
Starting a business requires planning and capital. But with low costs and high margins, bottled water can be lucrative. Meeting regulatory standards ensures product safety. With strategic partnerships, startups can establish anchor customers.
Consumer demand drives the market. But environmental impacts are substantial. As long as bottling stays profitable, companies will continue pumping groundwater despite concerns. The future remains uncertain.