Bottled Water – A Multi-Billion Dollar Business

By the mid 2000′s, bottled water was the 2nd most popular beverage in the United States. Although other liquid refreshments have jumped on the bandwagon, bottled water retains its status as the drink of choice in most developed countries around the world. According to the International Bottled Water Association, “Bottled water is a great beverage choice for hydration and refreshment because of its consistent safety, quality, good taste and convenience.” Bottled water is FDA regulated and bottled water companies must meet certain federal and state standards, be sealed in a sanitary container and be sold only for human consumption.

We Need Water

Our bodies are made from two thirds water and water is a required ingredient for a good way of life. Water controls respiring and body temperatures, carries oxygen and nutrient elements to all of our cells, helps convert foods to energy, removes wastes and lots more. Without water, we couldn’t survive for long.

The last ten years have shown a marked increase in the sale of bottled water in North America. However, the industry has seen a recent decline due to the global recession. In 2000, wholesale dollar sales exceeded $6 billion, and by 2008, despite the slump in demand, sales surpassed $11.5 billion. The end of 2009 saw a slight drop, ending the year with sales of only $10.6 billion. Despite the economic downturn, multinational bottled water companies continue to bring in the big bucks.

Contentions and Allegations

Allegations abound that bottled water is actually only removed ground water and that water firms simply stick on a label of providence and make their profits off the gullibility of the shopper. According to a report, a bottle of ‘mineral’ water costs ten thousand times more than that of tap water. Would we pay that multiplication for anything more we buy? Other objectors cite fears about power usage in addition to greenhouse and gas emissions. Research has suggested that eighty percent of bottles aren’t recycled, making 1.5 million tons of plastic waste every year and causing much damage to sea life in our seas and other waters.

Still, bottled water companies disclaim these contentions and wholeheartedly protest the health qualities and the convenience of their product. A look at the net profits, however, indicates that the profit margin on an ordinary bottle of water is between 50 to 200%. Astonishing! The interesting thing about bottled water is that is has not been shown to have any real beneficial properties over ordinary tap water.

Statistical data

The biggest bottled water company in the U.S. in 2009 was Nestle Waters Northern America ( NWNA ), with $3.8 bn. in sales, followed by PepsiCo with $11.1 bn. in sales. CocaCola’s Dasani brought in $1.2 bill in sales. These 3 firms together accounted for 57.5% of total wholesale sales for the year.

Darryl M. Sholar is a writer and blogger with a passion for all things outdoors. Darryl usually takes his bottled water with him, along with a great pair of men’s hiking sandals by SourceSource Outdoor with him on his trips.