Yes, the bottled water business is very profitable. The profit margins in the bottled water industry are exceedingly high, ranging from 50% to 200%. As some corporations get richer from selling bottled water, many people in developing countries lack access to clean water.
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.
Market Demand and Growth
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.
Overall, the bottled water industry is stable with high profit margins. As long as people need safe drinking water, the demand will remain strong. The substantial upfront costs for licensing and facilities are offset by the long-term earning potential.
Industry Leaders and Statistics
What bottled water company makes the most money? Aquafina is one of the top-selling brands of bottled water in the US.
Top Bottled Water Companies
- Aquafina
- Dasani
- Nestlé
- Danone
The profit margins in the bottled water industry are exceedingly high, as mentioned earlier. As some corporations benefit from these profit margins, the demand for bottled water continues to rise.
How much does a bottled water company make? In 2018, producer revenue of bottled water in the United States amounted to approximately 18 billion U.S. dollars and showed a continued upward trend.
How much does it cost to start a water bottling company? Startup costs can range from around $750,000 to $1.5 million or more depending on the size of the operation.
In 2020, revenue from the sales of bottled water amounted to $61.326 million and is expected to grow annually by 10.9 percent (CAGR 2020-2023).
The market size of the bottled water production industry was $7.8 billion in 2021.
Who sells the most bottled water?
Top Selling Bottled Water Companies by Revenue
- Aquafina – $2.52 billion
- Dasani
- Nestlé
- Danone
The market expectations are positive, indicating a promising future for the bottled water business.