Have you ever considered how much money there is to be made in water? For many of us, we turn the tap on and water runs, and we don’t consider anything beyond this. But many a millionaire, even billionaire, has been made through water. In this article, we’re going to examine how this essential yet natural resource can be the source of so much wealth.
The Key Players
When it comes to food and drink markets, it doesn’t get much bigger than the bottled water market. So it’ll come as no surprise to learn that some of the world’s biggest corporations operate within this industry. Nestlé, Coca-Cola and PepsiCo are all key players within the bottled water sector.
The fact that these global names have all diversified into bottled water proves just how much opportunity the industry presents. However, it also proves just how gated this industry is. Any startup must be prepared to lock horns with some of the world’s most recognisable brands. Although, the success of Liquid Death does prove that the bottled water market is open to innovation.
It’s also worth considering that money isn’t just made through the consumption of the product itself. Packaging is a big discussion within the industry at the moment, with many people looking for solutions to the amount of single-use plastic that is used by the bottled water industry.
Packaging isn’t the only area of bottled water that needs solutions either. Transport costs and ocean pollution, to name just two issues that are in desperate need of solutions. From a startup perspective, there is a massive opportunity in these areas to make money.
The Hidden Giant: Industrial Water Use
When we think of water, we may be guilty of only considering personal use. But the majority of water is consumed for industrial purposes. For example, agriculture accounts for around 70% of the global freshwater that we use. While the data around industrial water use is alarming, though, it’s also worth pointing out that we can’t live without water—and not just for drinking or washing.
A great example is sterile water for injection in the pharmaceutical industry. This type of water has to go through stricter purification processes, and multi-billion dollar companies like Xylem provide solutions around ultrapure water to healthcare providers. Solutions around ultrapure water can be worth millions if not billions of dollars, and it’s an area where we constantly see innovation.
Scarcity = Opportunity
The majority of the world takes water for granted. But in certain parts of the world, the lack of water can cause drastic issues, and there is still a massive opportunity to correct this. While this isn’t necessarily a money-making opportunity, there are many not-for-profit businesses trying to tackle issues like droughts and a lack of clean drinking water. Again, this opportunity attracts the attention of some of the world’s biggest brands that look to put their massive profits to good use.
For entrepreneurs and investors alike, the key lesson here is not to discount industries which, at first glance, appear to be saturated and old. Even water, a resource that has been around for longer than humans, is prone to innovation, creativity and a wealth of opportunities.
