Bottled water consumption has been on the increase year after year. A research conducted by International Bottled Water Association in conjunction with Beverage Marketing Cooperation indicates that the number of bottles consumed in America has grown by an average of 6.5% in the last three years. In terms of gallons, the consumption has tremendously grown in the past two years from 9.1 billion to close to 10 billion gallons. This growth is closely associated with the growth of pa capita income in the United States. Bottled water consumption per head was estimated at 30.8 gallons per year. The consumption of bottled water has increased tremendously compared to other beverages. This can be attributed to the increased awareness on the importance of water to the body.
The production and circulation of water is governed by the U.S Food and Drug Administration (FDA). Bottled water must meet the set standards. Companies producing bottled water must meet the safety and environmental regulation standards as set by the Environmental Protection Agency (EPA). This runs from the production mechanisms to the battle quality.
According to research statistics, the following represents the top 15 states that consume bottled water:
Expenditure depends on the par capita income. Those with higher income tend to consume more bottled water compared to low income earners. The location of the state will also dictate the amount of bottled water to be consumed in that state. States located in warmer regions will consume more water that those in the cold regions.
The income per capita shows all the individuals in a population. Breaking down the data to different age, income per head will change. Children are always regarded as dependents. This comprises of the age between 0-18. Generally, this is not a working age as they are currently schooling and not allowed to work. Their income is directly related to the income of their parents or guardians. Therefore, their expenditure on water will depend on how much their providers spend on water. Children from high income families will tend to consume more of the bottled water compared to children in low income families.
For adults, the income earned is the major determinant on the amount bottled water they will consume. The lifestyle practiced by adults will also determine the amount of bottled water they will purchase. For instance, people who eat out most of the time tend to consume more bottled water. Those that exercise most often will also consume more. Those who practice healthy habits: 2 litres a day; will also purchase more bottled water. The tap water in most states is fluoridated. Those that don’t want to consumer the fluoride will also purchase more of the bottled water. The income of adults is estimated to be $60,000.
Elderly people are those above 65 years. In America, most of them have little income from life savings and pension. Their income is relatively lower compared to the working-age adults. Their income per head is approximated at $33,600. Their consumption of water is also average because they have less to spend.
Of the three ages, the age bracket between 20 and 64 consumes more bottled water due to a number of reasons. Some have been stated above; but the reason is that their income is higher and so they have a flexible budget.
Cost of manufacturing bottled water
Assuming you are producing standard 500ml PET bottled water, the following are the costs to be incurred:
- The PET resin is likely to cost $0.04 for 20grams. This will depend on the dye and cost of conversion
- Capital $0.06
- Packing costs $0.25 per carton of 24 bottles, to get the cost a single bottle, this has to be divided.
- Other costs such as machine maintenance will cost $0.025 for every bottle
- Labour per bottle will be $0.82
There will be additional costs depending on the line of bottled water to be manufactured. Different types of bottled water follow different manufacturing processed hence a difference in costs. The labour costs may also differ depending on the level of production the manufacturer is. High end manufacturers will pay more to labour than small scale manufacturers. This applies to most of the costs.
Re-mineralization of water is done as the 6th stage in water purification and treatment. The first stage entails filtration by carbon. Then there is pretreatment followed by demineralization. The water is stored and monitored before minerals are added back into the water.
References
Bureau of Business & Economic Research. (2013). Per Capita Personal Income by State . New Mexico : University of New Mexico.
Chris, H. (2013). U.S. Consumption of Bottled Water Shows Continued Growth, Increasing 6.2 Percent in 2012; Sales up 6.7 Percent . bottled water matters .
Matthew, B. (2013). Bottled Water Costs 2000 Times As Much As Tap Water. Business Insider .
Nesttle Waters. (2013). 14 step quality process for purified water. STAMFORD: Nestle Waters.
