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INDUSTRY
CAPSTONE PROJECT REPORT
Specialization- Marketing
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A STUDY ON THE PACKAGED DRINKING WATER INDUSTRY
SUBMITTED
OF
BY
ROLL NO – 22
MARKETING
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Declaration
I also declare that the work undertaken by me is original and has not been copied
from any source. I further declare that the information presented in this project
report is true and has not been submitted to SIESCOMS or any other Institute for
any other examination.
Roll No.: 22
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CERTIFICATE BY THE FACULTY GUIDE
Date: 22/07/2023
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ACKNOWLEDGEMENT
I would like to acknowledge that this project was completed entirely by me and
not by someone else.
Signature
Date:
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EXECUTIVE SUMMARY
Manufacturing processes play a crucial role in ensuring the safety and quality of
packaged drinking water products. Stringent filtration, purification, and quality
control measures are employed to meet regulatory standards and consumer
expectations. Marketing strategies focus on highlighting the purity, convenience,
and health benefits of packaged water, targeting diverse consumer segments
across retail, institutional, and online channels. Distribution networks are
evolving to meet changing consumer preferences and market dynamics, with a
growing emphasis on e-commerce, direct-to-consumer models, and sustainability
initiatives.
Consumer preferences and trends in the packaged drinking water industry are
shaped by factors such as health consciousness, environmental awareness,
lifestyle changes, and technological advancements. Future trends are expected to
revolve around health and wellness, sustainability, premiumization, functional
beverages, smart packaging, personalization, and e-commerce. By anticipating
and adapting to these trends, stakeholders can position themselves for success in
an industry poised for continued growth and innovation, driven by the ongoing
demand for safe, convenient, and sustainable hydration solutions.
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TABLE OF CONTENTS
Content Page No
Introduction 8
Literature Review 12
Objectives 13
Research Methodology 15
Secondary Data 18
Conclusion 48
References 50
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Introduction
The packaged drinking water industry has emerged as a significant player in the
global beverage market, catering to the ever-growing demand for safe and
convenient hydration options. With concerns over water quality and safety on the
rise, packaged drinking water has become a staple in households, offices, and
public spaces worldwide. This study aims to delve into the dynamics of this
industry, examining its evolution, market trends, challenges, and opportunities.
The history of bottled water dates back centuries, with early civilizations
recognizing the importance of clean water sources. However, the modern bottled
water industry emerged in the late 20th century, spurred by advancements in
packaging technology, changing consumer preferences, and growing concerns
over tap water safety. From humble beginnings to a multi-billion-dollar industry,
bottled water has undergone significant transformation, evolving from a niche
product to a global commodity.
The packaged drinking water industry has witnessed remarkable growth and
transformation over the years. From its humble beginnings as a niche product to
becoming a multi-billion-dollar sector, the industry has undergone rapid
expansion fuelled by changing consumer preferences and advancements in
technology. The proliferation of bottled water brands, varying in size, packaging,
and price points, reflects the diverse landscape of the market and the fierce
competition among manufacturers.
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Market Trends and Dynamics:-
Several factors contribute to the growth and dynamics of the packaged drinking
water industry. Shifts in consumer behaviour towards healthier lifestyles,
increased awareness about the importance of hydration, and concerns over the
quality of tap water have driven demand for packaged water products.
Additionally, urbanization, rising disposable incomes, and the convenience factor
associated with bottled water consumption have further propelled market growth.
However, the industry also faces challenges such as environmental sustainability
concerns, regulatory scrutiny, and competition from alternative beverages.
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Challenges and Opportunities:-
Despite its rapid growth, the packaged drinking water industry grapples with a
host of challenges. Environmental sustainability has emerged as a pressing issue,
with concerns over plastic waste and carbon emissions associated with production
and transportation. Regulatory frameworks governing water quality standards,
labelling requirements, and packaging materials also pose compliance challenges
for industry players. However, amidst these challenges lie opportunities for
innovation and growth. The increasing demand for eco-friendly packaging
solutions, technological advancements in water purification and bottling
processes, and expansion into untapped markets present avenues for industry
stakeholders to thrive.
Environmental Considerations:-
Despite its popularity, the bottled water industry is not without controversy,
particularly concerning its environmental impact. The production, packaging,
transportation, and disposal of bottled water contribute to resource depletion,
plastic pollution, and carbon emissions, raising questions about sustainability and
ecological stewardship. As consumers become increasingly environmentally
conscious, there is growing scrutiny on the practices of bottled water companies,
prompting calls for greater accountability and alternatives to single-use plastic
packaging.
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Consumer Perceptions and Behaviour:-
Consumer perceptions and behaviour play a crucial role in shaping the bottled
water industry, influencing purchasing decisions, brand loyalty, and market
trends. Factors such as taste, convenience, health concerns, and social status drive
demand for bottled water, while growing awareness of environmental issues and
sustainability principles may impact consumer choices. Understanding the
motivations and preferences of consumers is essential for businesses to adapt to
changing market dynamics and enhance their competitive advantage in the
bottled water industry.
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Literature Review
In the literature review about the packaged drinking water industry, researchers
have explored various aspects, including market trends, consumer behavior,
regulatory frameworks, environmental impacts, and sustainability initiatives.
Studies have analysed the evolution of the industry, tracing its growth from a
niche market to a global phenomenon driven by changing lifestyles and concerns
over water safety. Additionally, researchers have examined the economic
implications of bottled water consumption, assessing its market size, revenue
trends, and competitive landscape. Consumer preferences and perceptions
regarding packaged drinking water have also been a focal point, with studies
investigating factors influencing purchasing decisions, brand loyalty, and
perceptions of product quality.
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Objectives
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labelling, packaging, and manufacturing practices to ensure consumer
safety and transparency.
Overall, the objectives of the packaged drinking water industry are multifaceted,
encompassing aspects of safety, quality, compliance, sustainability, innovation,
and growth. These objectives guide industry players in their efforts to meet
consumer needs while operating responsibly and profitably.
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Research Methodology
Secondary Data
The global bottled water market is expected to reach $647.7 billion by 2027, with
a compound annual growth rate (CAGR) of 7.3%.
The India bottled water market is ₹ 25.4 Thousand Crores in 2024 & It is expected
to reach 1 Lakh Crores market size Industry in another 15 years.
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Packaged drinking water has become an indispensable part of modern life,
ensuring access to safe and potable water for millions worldwide. Secondary data
regarding this industry spans a vast array of topics, from market trends and
consumer behaviour to regulatory frameworks and environmental impacts.
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Environmental considerations are also of increasing importance in the packaged
drinking water sector. Secondary data may offer insights into the environmental
footprint of bottled water production, including data on resource use (such as
water and energy), carbon emissions, waste generation, and recycling rates. This
data can inform efforts to reduce the environmental impact of the industry
through initiatives like lightweight packaging, water conservation measures, and
increased recycling.
Secondary data regarding the packaged drinking water industry also sheds light
on the socio-economic implications of its consumption. This could involve
analyses of affordability and accessibility, particularly in regions where access to
clean drinking water is limited. Data might explore disparities in access based on
factors such as income level, geographic location, or infrastructure development.
Additionally, studies may examine the economic impact of the packaged drinking
water industry, including its contribution to employment, GDP, and local
economies through production, distribution, and retail activities.Furthermore,
secondary data often delves into the health considerations associated with
packaged drinking water.
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This may include research on the safety and purity of different brands,
contaminants found in bottled water, and comparisons with alternative sources
such as tap water. Data might also explore the health effects of long-term
consumption of packaged drinking water, including potential risks associated
with plastic packaging and additives used for flavouring or purification.
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Consumer Preferences and Perceptions:-
II. Safety and taste are the primary factors influencing consumer choice of
bottled water brands [Source: Citation for consumer preference study].
III. Consumers are increasingly willing to pay a premium for bottled water
perceived as healthier or environmentally friendly [Source: consumer
willingness to pay].
V. Concerns about plastic waste and micro plastics are leading some
consumers to switch to reusable water bottles or filtration systems
[Source: Study on plastic waste concerns and bottled water consumption].
II. Regulatory bodies ensure bottled water meets quality standards for safety
and purity [Source: Source on bottled water regulations by specific
agency].
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III. Concerns exist about the potential leaching of chemicals from plastic
bottles into the water, particularly with prolonged storage or exposure to
heat [Source: Source on chemical leaching from bottled water bottles].
V. Public health initiatives promoting tap water safety and advocating for
refillable water bottles can reduce reliance on bottled water [Source:
Source on public health initiatives for tap water and refillable bottles].
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Future Outlook:-
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Manufacturing Process Of Packaged Drinking Water
I. Pre-treatment:-
A. Source Water Acquisition:- Water comes from various sources like
springs, wells, or municipal supplies.
B. Filtration:- This removes large particles like sand, debris, and organic
matter using multimedia filters or cartridge filters.
C. Coagulation and Flocculation (Optional):- For water with high turbidity,
chemicals are added to clump suspended particles for easier removal
through settling or filtration.
D. Chlorination (Optional):- Chlorine disinfection may be used as a
preliminary step to kill bacteria and other microbes.
II. Treatment:-
A. Sand Filtration:- Sand filters remove finer suspended particles and
impurities.
B. Activated Carbon Filtration:- This stage removes chlorine taste, odour,
and organic compounds that can affect taste or colour.
C. Water Softening (Optional):- This step might be necessary for water with
high mineral content (hard water) to improve taste and prevent scaling in
pipes.
D. Deionization (Optional):- This further removes remaining charged ions
like minerals through ion exchange resins. (Used for demineralized water)
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III. Advanced Purification:-
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V. Bottling & Packaging:-
A. Bottle Blowing:- PET preforms are heated and blown into moulds to create
the final shaped bottles.
B. Rinsing & Filling:- Bottles are thoroughly rinsed with sterilized water and
then filled with purified water.
C. Capping & Labelling:- Bottles are sealed with tamper-proof caps and
labelled with product information and expiration date.
VI. Warehousing:-
A. Finished bottles are inspected, packed into cartons or shrink-wrapped, and
readied for distribution to retailers and consumers.
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Marketing Strategies Of Packaged Drinking Water
Industry
Brand Positioning:- Clearly define your brand’s unique value proposition and
positioning in the market. Highlight factors such as purity, taste, health benefits,
or environmental sustainability.
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Content Marketing:- Create valuable and educational content related to
hydration, health, fitness, and lifestyle topics. This could include blog posts,
videos, infographics, and podcasts that position your brand as an authority in the
industry.
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Retail Promotions:- Offer promotions, discounts, and special offers in
collaboration with retail partners to drive sales and incentivize trial purchases.
Data Analysis and Optimization:- Use analytics tools to track the performance
of your marketing campaigns, measure key metrics, and make data-driven
decisions to optimize strategies for better results over time.
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II. Product Development and Innovation:-
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Sales & Distribution Of Packaged Drinking Water
Industry
I. Sales Strategies:-
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6. Sampling Programs:- Conduct sampling programs at events,
festivals, and high-traffic areas to allow consumers to experience the
quality and taste of your packaged water.
7. Educational Marketing:- Provide educational materials or
demonstrations highlighting the health benefits of staying hydrated
and the importance of choosing packaged water over sugary
beverages.
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12. Trade Shows and Events:- Participate in industry trade shows,
health expos, and community events to showcase your product and
network with potential buyers and partners.
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D. Investigate the relationships between packaged drinking water
manufacturers and retailers, including wholesalers, distributors, and
individual stores.
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II. Distribution Strategies:-
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8. Direct Sales:- Conduct direct sales efforts through door-to-door
sales teams or direct marketing campaigns in targeted areas.
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15. Feedback Mechanisms:- Establish feedback mechanisms to
gather insights from distributors, retailers, and consumers to
continually refine and improve the distribution strategy.
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Servings & Usage Context of Packaged Drinking Water
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III. 5 litres Servings :-
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IV. 10 litres, 20 litres & 25 litres Servings :-
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Advantages Of Packaged Drinking Water
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V. Variety and Choice:- The packaged drinking water market offers a wide
variety of options to suit different consumer preferences, including still
water, sparkling water, flavoured water, and enhanced water with added
vitamins or minerals. This allows consumers to choose products that align
with their taste preferences and nutritional needs.
VI. Long Shelf Life:- Packaged drinking water typically has a long shelf life,
allowing consumers to stock up on water supplies for emergencies or for
use in situations where access to clean water may be limited, such as during
natural disasters or travel to remote areas.
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X. Health Standards:- Packaged water is subject to stringent regulatory
standards and quality control measures, ensuring it meets health and safety
requirements.
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XVII. Hydration for Events:- Packaged water is a staple at events, conferences,
and festivals for attendee hydration.
XVIII. Recycling Potential:- Many plastic water bottles are recyclable, which can
help to reduce waste if disposed of properly.
XIX. Economic Benefits:- The bottled water industry creates jobs and
contributes to the economy in various regions.
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Future Trend Analysis of Packaged Drinking Water
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VI. Personalization:- As consumers seek more personalized experiences,
packaged drinking water companies may offer customizable products
tailored to individual preferences and dietary requirements. Future trends
may include personalized hydration solutions based on factors such as age,
gender, activity level, and health goals, with options for flavour
customization, nutrient fortification, and packaging design.
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X. Premiumization:- There may be a trend towards premium and specialized
packaged water products targeting niche consumer segments. This could
include premium mineral water sourced from exotic locations, customized
hydration solutions tailored to individual preferences or dietary needs, and
luxury packaging designs aimed at enhancing perceived value.
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XIV. Adaptive Packaging Designs:- Packaging designs that adapt to various
environments and activities, such as insulated bottles for outdoor use or
spill-proof caps for sports activities.
XXI. Focus on Local Sourcing: Consumers might favour locally sourced water
to reduce the environmental impact of transportation.
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XXII. Challenges and Considerations:-
• Plastic Waste Management: The environmental impact of plastic
waste from bottles remains a major concern. Continued innovation
in bioplastics or improved recycling infrastructure is crucial.
• Water Scarcity: Pressure on freshwater resources could lead to
regulations or restrictions on bottled water production in some
regions.
• Consumer Affordability: Rising packaging and production costs
might translate to higher prices for consumers, impacting
accessibility.
Overall, the future of packaged drinking water seems promising, with a focus on
innovation, sustainability, and meeting evolving consumer needs.
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Conclusion
In conclusion, the packaged drinking water industry plays a vital role in providing
consumers with safe, convenient, and reliable hydration solutions. Throughout
this study, we have explored various aspects of the industry, including
manufacturing processes, marketing strategies, sales dynamics, consumer
preferences, and future trends.
The packaged drinking water industry remains a dynamic and resilient sector
poised for continued growth and innovation, driven by the ongoing demand for
safe, convenient, and sustainable hydration solutions in an increasingly health-
conscious and environmentally aware global market.
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In conclusion, the future of packaged drinking water holds exciting possibilities
driven by evolving consumer preferences, technological advancements, and
sustainability concerns. As demand for clean, convenient, and health-conscious
hydration options continues to rise, brands will innovate with eco-friendly
packaging, functional ingredients, and personalized solutions. Collaboration with
wellness experts, adoption of smart technologies, and a commitment to
transparency will shape the industry’s trajectory. By embracing these trends and
remaining responsive to consumer needs, the packaged drinking water sector is
poised for continued growth and positive impact on health and sustainability.
Invest in branding and packaging design that communicates quality, purity, and
trustworthiness to attract and retain customers. Utilize e-commerce platforms and
digital marketing strategies to reach consumers who prefer online shopping and
capitalize on the growing trend of online grocery shopping.
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References
1) https://www.mordorintelligence.com/industry-reports/bottled-water-
market
2) https://www.grandviewresearch.com/industry-analysis/packaged-
drinking-water-market
3) https://www.statista.com/topics/2095/bottled-water-market/
4) https://www.researchandmarkets.com/reports/4768261/packaged-
drinking-water-market-growth-trends
5) https://www.prnewswire.com/news-releases/global-bottled-water-market-
report-2021-2026-market-to-reach-313-92-billion-by-2026-
301326581.html
6) https://www.transparencymarketresearch.com/bottled-water-market.html
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