Porter’s Five Forces Analysis of Bottled Water Industry 

Bottled water outlines the clean drinking water contained in the glass or plastic bottle packaging. The size of bottles ranges from single small serving bottle to large-size carboys for water coolers. Today, we’ll discuss Porter’s five forces analysis of Bottled Water industry; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Forms of Bottled Water

• Spring water
• Mineral water
• Reverse osmosis water
• Distilled water
• Well water

Statistical facts and figures of Bottled Water industry

• Revenue – 243.6 billion USD (2024)
• Growth rate – 5.24%
• Average Home volume per person – 57.74L (2024)
• Prediction of average home volume – 0.5 Tn L (2028)

Companies in Bottled Water industry

• Acqua Pana
• Belu
• Arrowhead Water
• Ozarka
• Pepsico
• Poland Spring
• Fiji Water
• Nongu Spring
• Antipodes
• Deer Parks
• Evian
• Glaceau Smartwater
• Dasani
• Essentia

Porter’s five forces analysis of Bottled Water industry would analyze the bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management. Here’s Bottled Water industry Porter’s five forces analysis of bottled water business as follows;

Porter’s Five Forces Analysis of Bottled Water Industry

Let’s discuss the Porter’s five forces analysis of Bottled Water Industry as competitive forces in strategic management and they’re as follows;

Bargaining Power of Suppliers in Bottled Water Industry

The bargaining of suppliers is low in the Bottled Water Industry as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Bottled Water Industry Porter’s 5 forces analysis of bottled water business are as follows;

I-Natural Source

Underground water streams and reservoirs are the main sources of clean water for Bottled Water companies. The Bottled Water companies drill and bore the ground hundreds of feet to reach the natural water source start pumping it out, and filter and package it for distribution.

However, the other sources of water could be spring water, ocean water after de-salting and filtering, and others. All of these natural sources are easily available in various regions and countries across the globe. The easy availability of natural sources of water decreases the bargaining power of suppliers.

Bargaining Power of Buyers in Bottled Water Industry

The bargaining of Buyers is Higher in the Bottled Water business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Bottled Water business five forces analysis of the Bottled Water industry are as follows;

I-Free Filtration Plans

Many governments, NGOs, and other organizations have installed free-water filtration plans in different cities and places worldwide. The objective is to provide free access to clean drinking water to everyone regardless of their race, gender, or any other differences. Along with water filtration plants, there are many clean water streams and underground water wells that people have been using for centuries. When people can get water freely, it gives them significant bargaining power.

II-Multiple Brands Options

There are multiple Bottled Water brands offering the same clean drinking water at the same market competitive prices to the customers. Customers could easily switch from one brand to another without any cost; there is no brand loyalty. It further increases the bargaining power of customers to a great extent.

Threat of New Entrants in Bottled Water Industry

The threat of new entrants is Moderate to low in Bottled Water industry as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the bottled water business five forces analysis of Bottled Water industry are as follows;

I-Filtration Plan & Equipment

While launching the new Bottled Water Company, the inventors should have access to clean and natural water; preferably under their ownership. They have to procure the filtration plant, hire the technical staff to filter water, and operate the machine. Collectively, it becomes a significant amount of high initial cost.

II-Marketing & Distribution

Along with heavy initial costs, the new entrants would have to invest a significant amount of capital resources in marketing and branding. Repetitive marketing and promotional messages would attract the attention of customers. It takes them a lot of time and resources to take their business globally and win the market.

Threat of Substitutes to Bottled Water Industry

The threat of substitute products and brands is moderate in the Bottled Water industry as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in the bottled water business 5 forces analysis of Bottled Water are as follows;

I-Quality & Cost

It is no free drinking water is available in various places across the globe, but it raises a serious question about its quality. When customers pay for Bottled Water, then the company and the food and safety checking department assure them that the product is safe for their health. After all, water is life, and no one wants to take the risk of their lives.

Competitive Rivalry in Bottled Water Industry

The competitive rivalry among Bottled Water companies is very high as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in the Bottled Water industry 5 forces analysis of bottled water business are as follows;

I-High Competition

The Bottled Water Industry has become highly competitive in recent years. There are multiple local and global brands operating their business and offering similar products at the same price. In order to stay ahead of competition, Bottled Water companies invest a significant amount of resources in marketing and promotion to maintain their market position.

Conclusion: Bottled Water Industry Porter’s Five Forces Analysis |5 Forces Analysis of Bottled Water Industry

After an in-depth study of Porter’s five forces analysis of Bottled Water Industry; we have realized Bottled Water has become common in our daily lives. If you are learning about the Bottled Water industry 5 forces analysis of bottled water business; then you should keep in mind the abovementioned bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.