Thursday, March 28, 2013

The Potential of Water Market

The world bank Forecasts that by 2025, two-thirds of the World’s Population will run short of Drinking Water. The World Health Organisation, in its vision 21 report, Estimates that $47 billion per year over the next 25 years will be required for Universal Water access. B&E analyses The Global Water Market.

The looming water stress

In the 20th century, the world’s population tripled while the use of renewable water resources grew six folds. The World Water Council estimates that in the next fifty years, the global population will increase by another 40-50%; and this population growth, coupled with industrialisation and urbanisation will result in an increasing demand for water. Globally, 10% of water flow into domestic use, 70% into agriculture and 20%into industrial production. UN forecasts that by 2030, almost 60% of the world’s population will be living in urban areas. In contrast to agriculture and urban water management, where consumption is steadily rising, the situation is slightly positive for industrial water use. It is unlikely that water can be made available for all application in the future at the same low cost.

Growing Health Awareness

The Global Bottled Water Market 2010 report by Beverage Market Corporation states that North America leads the world in bottled water use accounting for 29.8% share by volume. In case of the developed countries, water, apart from being a basic commodity, is also a lifestyle product. According to IDM, Germany, consumers can choose from about 500 different domestic water brands – all of which are different in terms of taste and origin, apart from mineral water imported from abroad. However, in many other countries, people rely on bottled water driven by contaminated and unsafe drinking water. Other factors influencing the growth of bottled water are availability of convenience packaging and inability of the governments to provide safe drinking water.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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