Is Bottled Water Business Profitable

Is Bottled Water Business Profitable? 5 Reasons To Go For It

Bottled water business is one of the profitable business ideas one can pursue. If you are interested to know how the bottled water business is beneficial for you, so stay with us you will leave with no doubts after reading the article.

The bottled water business or packaged mineral water business is quite in demand in many countries where there is a shortage of water or the water available for drinking is not clean. As we all know 71% of the Earth’s surface is covered with water but only 3% of it is fresh water. From this, you can see that not every place has fresh water available for drinking.

So, different industries use water other than freshwater to filter it and make it clean for drinking purposes for that they charge you monthly a fixed amount of money. And also they sell the water in bottles so that it can be exported to other cities and states.

Is Bottled Water Business Profitable

The bottled water business is profitable and has a huge profit margin when compared to other similar businesses. So, let’s know the reasons that make this business profitable.

5 Reasons Why Bottled Water Business Is Profitable

1. Evergreen Market For Bottled Water Business

Yes, the market for mineral water is indeed evergreen which means that demand for bottled water is always there because freshwater is scarce all around the world. The market potential for bottled water is increasing day by day in many countries. People living in big cities always prefer to drink bottled water, because it is safe compared to tap water.

But you need to analyze the market where you are going to start the business because that is very important. The market for bottled water is evergreen but not everywhere you need to analyze the different areas and see where the most demand for the product is.

When it comes to starting a business market analysis is important. Yes, we know the market for bottled water is good but this may not be the case for your business location.

2. Consumers Are Worried About Their Health

As we all know now in 2022 people take care of their health more than ever. So, they prefer bottled or mineral water to avoid any complications. From a business point of view, it is an opportunity for an entrepreneur to fulfill those needs and gaps created in the market.

It is the people you are targeting so you have to know what they need. They are worried about their health and don’t want to take any risks on their health so they buy bottled water that is safe to drink.

3. Environmental Awareness

Now businesses also contribute to environmental safety and they make products that don’t harm the environment. Many countries have made it mandatory for businesses to spend some percentage of their annual profit on the environment and social responsibility.

Saving water is one of the most needed things you have to do. Making bottled water and using it when there is a need for it also contributes to society.

You can understand this from the example:

If you live in an area where there is abundant fresh water for drinking but people use it carelessly and don’t save it for later purposes. Of course, for them, there is no need to save but the people living in areas where there is a shortage of water need fresh to maintain their health. If you are in the mineral water business then you can save this water and make a business out of it. Of course, you need permission for that from the authority of your country.

4. Potential for Profit

The profit potential of the bottled water business is amazing. The business has huge demand in the market and its profit potential is also huge.

Wondering how?

For example, if you are in the bottled or mineral water business and you sell a bottle for around $2 then you make a profit of around 1.3 dollars. How many bottles does a company sell in a single day? Let us suppose it is around 10,000 bottles then the profit will be $13,000 in a single day.

From this, you can get an idea bout the profit potential of the business. For this, you have to establish a business to that level that your sales will increase to a level that you get billions from this business.

These figures are just to give you an idea about the profits in the bottled water business.

5. Bottle Water Business Creates Jobs

Not only do you make a profit out of this business but also create employment opportunities for a large number of people. The bottled water business is huge and requires a large number of employees for management, distribution, and selling.

From the business, you can contribute to society by offering them job opportunities and increasing your reputation in the market. 

Should You Go for Bottled or Mineral Water Business?

Now you may think should I go for this business or not. Above we have talked about the reasons why you should go for it. Let’s say those are positive sides of the business which make it profitable. You should also know the cons of the business which help you finally decide to start this business or not.

Here are a few cons of the bottled water business that tell you the challenges you may see during the course:

Initial Cost is High: Yes, the initial cost of the bottled water business is indeed high because you need to set up a plant, there are distribution and selling charges, the salary of employees, and trucks for exports. All these things are needed for the business to run smoothly.

Competition: We know that it is a profitable business but at the same time, it also makes it a competitive business because there are already similar businesses that have a large market share.

Trust Issues: The existing business may have created a reputation in the eyes of customers for its quality and new business will take time. This is one of the main challenges you face initially because customers don’t trust your product which is in this case a water bottle.

The above-mentioned cons of the business are the main challenges you may face in the business. These are not negative sides of the business but you should see them as challenges. It is up to you how your strategies and promotion techniques will beat the competition of the business.

Now should you go for it?

It is up to you, if you are willing to task risks in this business then you should go for it. It is your decision to take. Here I have provided the information about the profitability and other sides of the business which may help you decide whether to go for it or not.

Here are a few questions that people ask about the business:

Who buys the most bottled water?

This is one of the interesting and major questions that you should ask yourself if you are willing to start this business because knowing the target customers is important.

Those who most buy bottled water are the people you should target and they are people who have a shortage of water and are willing to buy bottled water.

You have to analyze the market to see where the most demand for the bootle water is.

In most cases, the people living in big cities buy most of the bottled water because in cities getting freshwater is quite difficult and it is not possible to drink tap water. 

Are water bottles in high demand?

As  I have told you earlier in the article that bottled water is in high demand in those areas where water is scarce and also people can afford bottled water daily. These areas can be big cities where people don’t have fresh water to drink, the tap water is not clean and there may have other several reasons for high demand.

My Final Thoughts

Now you are aware of the reasons for bottled water business profitability. You have to consider several factors about a bottled water business. Having a profit margin high in the business doesn’t mean that it is good to start, there might have several factors that may not be good for you.

In most of my articles, you may have seen that I talked about a detailed analysis of the business. It is important because the capital and time you invest should be fruitful in the end. There are risks in the business but if you implement the strategies well then you have more chances to be successful.

In this case, the market potential is good but the bottled water business is not new and there are already business players who have been successful in the business and have captured a large share so it is indeed necessary that you should take the steps carefully.

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Irfan Hassan

My name is Irfan Hassan and I've done MBA in finance and marketing. I am a blogger by passion and love to share ideas about businesses that you can start and earn your livelihood. Visit about us page to know more about me and my blog.