The bottled water industry has grown rapidly since the mid-1970s, with an estimated 200 billion bottles consumed worldwide in 2008. Convenience, health, and flavor are among the top reasons people buy bottled water, despite the environmental cost and lack of solid evidence to support its perceived health benefits. Critics argue that the cost of bottled water is a major drawback, but the industry continues to thrive and contribute to local economies.
The bottled water industry is a segment of the global economy that bottles and sells water extracted from aquifers, springs, or artificial tap water systems. The vast majority of bottled water is sold for drinking, but there is a small segment devoted to distilled water for car battery and scientific uses. Sales of bottled drinking water began to grow rapidly in the United States in the mid-1970s, and worldwide sales growth in the early 21st century was impressive. An estimated 200 billion bottles of water were consumed worldwide in 2008, with 50 billion in the United States alone.
Prior to the 1970s, half of the global bottled water industry consisted of a handful of companies that sold carbonated mineral water from natural springs, often associated with spas. The other half were a handful of major beverage companies that sold bottled seltzer and club soda. Both products enjoyed niche markets and neither seemed destined for greatness of any kind. Bottled mineral water was limited to a few brands, mainly in Europe, and club soda, both bottled and canned, enjoyed a respectable niche market worldwide and was primarily used as a mixer.
In 1977, Perrier made the decision to sell its carbonated mineral water in the United States. It sold $20 million in 1978, which tripled to $60 million in 1979. The product took a few years to catch on, but it did, and the bottled water industry currently includes thousands of companies that bottle and they sell water all over the world. Carbonated bottled water has reverted to its position as a niche product, and the vast majority of bottled water sold worldwide today is non-carbonated.
Convenience, health, and flavor are among the top reasons people buy bottled water. There is no doubt that bottled water is very convenient virtually everywhere it is used. As far as health is concerned, bottled water can often be healthier than available alternatives. It’s in the area of flavor, however, that bottled water competes best with its free competition. With a few notable exceptions like San Francisco and New York City, most American tap water, even when certified pure and clean, often tastes just okay or worse.
Bottled water is perceived by many Americans as purer and healthier than tap water, even though there is no solid evidence to support that perception. In fact, processing plants responsible for producing tap water are inspected and their product tested, far more frequently than water bottling plants. Additionally, any problem with your tap water, no matter how minor, should be reported to the public immediately; bottled water manufacturers have no such obligations.
The extraction, bottling and distribution of bottled water also have a significant environmental cost, especially in terms of energy expended at each step. For example, with the exception of a few glass bottled carbonated brands, virtually all bottled water is sold in clear polyethylene terephthalate (PET) bottles that are 100% recyclable. Some companies ship empty bottles from the US to the South Pacific for refilling, and then back to the US. Distribution networks transport the bottles to the last outlets in the United States. Once the water has been consumed, however, research indicates that less than a quarter of all bottles sold are actually recycled; most consumers simply discard empty plastic bottles in the conventional waste stream.
Critics say one of the biggest drawbacks of bottled water is its cost. The more expensive brands often cost more per gallon than gasoline, they say, and estimate that if Americans paid for tap water at the same rates they pay for bottled water, the average American monthly water bill would be about $9,000 US Dollars. Most brands of bottled water, however, cost significantly less than most other beverages.
Despite these problems, the bottled water industry is thriving around the world. Compared to other drinks, many brands are reasonably priced and offer their customers a convenient, usually pure drink without all the sugars and chemicals found in so many other drinks. Water bottling companies can also make significant contributions to local economies by providing jobs for workers in their extraction and distribution facilities. Another major financial contributor is revenue retained by local retailers, who typically retain over a third of the revenue from bottled water sales. These factors alone keep the bottled water industry thriving despite its critics.
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