Sample Market Paper on Market Opportunity for Water Bottle Holders

Market Opportunity for Water Bottle Holders

In order to understand the potential market for the water bottle holders, it is important to get insights regarding the water bottle market, as the consumers of the water bottles are the ones that will purchase the water bottle holders. The size of the US water bottle market was $17 billion as at 2017. It is projected to reach $22.5 billion by 2024 (Persistence Market Research, 2017). Absolute dollar opportunity for bottled water in the US is expected to reach $6 billion in 2024 over 2016 (Persistence Market Research, 2017). Consumption of contaminated water is blamed for various health problems such as gastrointestinal disorders, neurological diseases and reproductive problems. This has led to the consumer opting for bottled water leading to an increase in the demand for the commodity. The water has to be properly packaged to protect it from any bacterial infection. Once the packaging is satisfied, there is little worry over the storage time. The water cannot go bad or expire if there are no contaminants. The water bottle holder should uphold hygiene and health standards to ensure that it does not contaminate the water in the bottles held. The long shelf life of bottled water makes it a good and sustainable business venture for entrepreneurs. It is also a safe and convenient mode of providing water for persons in an event, making it the preferred method of providing water by catering companies.

Drivers of Water Bottle Holders

There is a notable shift in the market that is fueling the demand for bottled water and consequently spiking the demand for water bottle holders. Many persons are opting to consume pure water as opposed to other beverages that contain calories, caffeine and preservatives (Persistence Market Research, 2017). This is done in the effort of leading healthier lifestyles. The demand for carbonated water and drinks is dropping. Carbonated drinks often contain phosphoric acid and caffeine that lead to digestive problems among the consumers. The caffeine drinks are also blamed for weight gain, heart burn, among others (Persistence Market Research, 2017). These trends have made beverage companies focus on the production of functional and flavored water. In a bid to appear healthy and yet stylish, customers are opting to purchase water bottle holders for convenience when travelling or engrossed in their daily activities.

Restraints on the Market for Water Bottle Holders

There are various environmental problems caused by the manufacturing processes and disposal of water bottles. A lot of energy is needed in the extraction, processing, and bottling of water. This further contributes to degradation of the environment. The disposal of the water bottles contributes to pollution, as the material used in the manufacture of these bottles is often nonbiodegradable (D’Altrui, 2017). These factors hinder the growth of the water bottle market in the US market, and this has a direct impact on the market for water bottle holders in the country. This is because the disposable water bottles account for a huge chunk of the water bottle market, which water bottle holders are reliant on. A number of cities in the United States have banned the use of water bottles. On such a city is San Francisco (D’Altrui, 2017). This demerit in the use of water bottles can be reduced by having reusable water bottles.

Opportunities for Water Bottle Holders

Due to the uncertainty in the market for disposable water bottles, the water bottle holder is intended for the reusable water bottles. There is a high likelihood that the market to which it will appeal is more contracted compared to the aggregate market for bottled water in the United States. The total market for reusable water bottled in the US is $7.04 billion and is expected to rise to $10.19 billion by 2024 (Persistence Market Research, 2017). The size of the market for water bottle holder is expected to be more or less the size of the market for the reusable water bottles. The primary segments of the market where the reusable water bottles are used are sports and travels. There is a need for comfort and usability in the handling of the reusable water bottles. The water bottle holder will therefore target these two market segments.

The use of reusable water bottles is promoted by the need to protect the environment. The trend is to reduce the environmental impacts of the water bottles, and this is contributing to the expansion of the market for water bottle holders. Further, the quality of tap water is improving as better methods of purifying water are invented, making the consumers relying on bottled water reduce. Access to cleaner water from other sources makes the consumers consider having the water bottle holders for convenience in carrying water at a lower cost. The marketing of the water bottle holders can ride on the trend of the benefits of consuming pure water compared to other beverages. The lessening dominance of the disposable water bottles in the market is likely to promote the uptake of the reusable water bottles. The variations in the design of the reusable water bottles are not sharp, and this will make it easier to come up with a universal water bottle holder for the market.

Convenience is the leading factor attracting customers in the purchase of the water bottle holders. Straps for holding the bottle by hand and clips to hold and attach the bottle holder on a bicycle or one’s belt are features of interest to consumers  (Brandão, Moyo, & Okonkwo, 2014). Heavy fabric with enough insulation is preferred in making the pouches for the bottles and the straps as well. Polymers are common for making the clips to hold onto the belt or the bar of the bicycle (Brandão et al., 2014). Hygiene is another factor that customers are concerned about, as the water bottle holder will be utilized multiple times. The water bottled holder should not be in contact with the mouth of the bottle held to prevent unintended contamination of the water in the bottle. This has been taken into consideration in the design of the water bottle holder.

References

Brandão, J., Moyo, M., & Okonkwo, J. (2014). Determination of antimony in bottled water and polyethylene terephthalate bottles: a routine laboratory quality check. Water Science & Technology: Water Supply14(2), 181. http://dx.doi.org/10.2166/ws.2013.187

D’Altrui, E. (2017). Bottle Water Bans: How can we curb the thirst for bottled water?

Elements13(1). http://dx.doi.org/10.6017/eurj.v13i1.9614

Persistence Market Research. (2017). U.S Bottled Water Market – USA Market Analysis, Demand, Sales, Future and Trends by 2024Persistencemarketresearch.com. Retrieved 4 February 2018, from https://www.persistencemarketresearch.com/market-research/us-bottled-water-market.asp