Business And Economic Characteristics Of The Bottled Water Industry

1427 Words Nov 10th, 2016 6 Pages
What are the strategy-shaping business and economic characteristics of the bottled water industry? What is the industry like? The global bottled water industry forecast is growing by 30% through 2010 to reach approximately $82 billion in revenue. Bottled water is thought to be safer than municipal tap water and an alternative choice to high calorie carbonated beverages. Focus on fitness, health, and the go-go lifestyle has made the United States’ the largest market for bottled water in the world. The single polyethylene terephthalate (PET) container has satisfied customers with its convenience and portability. The global and U.S. markets are controlled by a few food and beverage companies that sell the top 10 brands.

Table: The Top 10 Bottled Water Brands in the US by wholesale sales in 2007 Dasani (Coca-Cola) ($1.6bn) Aquafina (PepsiCo) ($1.5bn) Poland Spring (Nestle Waters) ($878m) Arrowhead (Nestle Waters) ($586m) Nestle Pure Life (Nestle Waters) ($545m) Source: Beverage Marketing Corporation

Crystal Geyser (CGWC) ($529m) Deer Park (Nestle Waters) ($500m) Ozarka (Nestle Waters) ($352m) Ice Mountain (Nestle Waters) ($292m ) ZephyrHills (Nestle Waters) ($272m)

There is fierce competition among these producers and they all have a similar “scale and scope” of operation. For instance, Pepsi and Coca Cola have developed a strategy and infrastructure that makes it hard for regional sellers to complete with them. However, there are many small producers that try to access the…
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