In the past 20 years, China's bagged water industry has seen many ups and downs. At first, bagged water did not gain recognition due to technical and cost limitations. Today, living standards are better. Demand for healthy drinking water is on the rise. So, the bottled water industry has promising prospects.
Even more importantly, packaging bagged water in this manner ensures consumer safety. It also keeps the water healthy and fresh. This white paper will analyze the prospects for bagged water in China. It will also cover the things to consider. It will discuss early profit calculations and 2024 development trends. The Bagged Water Association's goal is to provide useful references and tips. These are for those in the bagged water industry.
I. Advantages of Bagged Water
Bagged water has these advantages. It is compared to traditional types of packaged water, such as bottled and barreled water.
1. Compact Size, Easy Replacement:
Bagged water comes in sizes of 3, 5, 7.5, 9, and 10 liters. These sizes are more convenient for individuals than the typical 18.9-litre barrel. It is easy for elderly and children to handle, offering a new choice for various consumers.
2. Humane Packaging, Negative Pressure Water Extraction:
The entire product lifecycle remains sealed, preventing bacterial growth. The water extraction method is like that of medical infusion bags. It maintains a sealed, negative pressure. The bag stays sealed from filling to the last drop. It keeps things fresh and clean. The bag holds a moderate amount of water. It lasts a long time and has a short drinking cycle. Most households can finish one in 1-3 days. This prevents bacteria from growing due to long storage. It ensures each drop is fresh and healthy.
3. Complex Manufacturing: Preventing Counterfeits
The production process of bagged water is complex and precise, with high-quality standards. You should make bagged water that exceeds the GB19298 standard. The substantial investment in production equipment deters counterfeiters.
4. Food-Grade Packaging, Safer Drinking Water
Bagged water uses food-grade composite film packaging. Despite being a thin plastic bag, it can withstand pressures up to 80 kilograms. The disposable water bag packaging eliminates the need for returning and sanitizing barrels. It directly addresses the pollution issues with barreled water. The used packaging film is environmentally friendly and recyclable for non-food contact products.
5. Low Transport Costs, Wide Sales Range:
Unlike barrelled water, bagged water does not require the transportation of empty barrels. Products have less space between them during transport. This allows more products to be shipped. Ideally, the production facility and the managers should be within 200 kilometres. The sales radius of the centre should be within 20 kilometres.
6. Eliminating Secondary Pollution from Barrels and Water Dispensers:
The pollution in barreled water comes from water dispensers. But, bagged water has a short storage period and no dispensers. So, it has less bacterial contamination.
II. Characteristics and Positioning of Bagged Water Enterprises
Bagged water enterprises are characterized by their regional focus and target customers. They leverage local geographic, cultural, water quality, and demographic advantages for clear positioning. Bagged water companies dominate their local markets without competing against major national brands. Targeted regional advertising helps reduce promotional costs.
III. Initial Profit Calculations for Bagged Water
1. Profit Calculation for Bagged Water Manufacturers:
The output is 2 tons per hour. The capacity is 200 bags of 10 liters per hour. This is 1600 bags daily over 8 hours. The cost per bag is 3 yuan, with a factory price of 5 yuan, resulting in a profit of 2 yuan per bag. They cost about 4800 yuan each day. They make about 3200 yuan in profit. Annually, the gross profit is estimated at 1.168 million yuan. The filling equipment costs about 500,000 yuan. It can be recouped within a year.
2. Profit Calculation for Bagged Water Operation Centers:
In a first-tier city, the cost per bag is 5 yuan to buy and 3 yuan for operating. The 3 yuan cost includes venue, management, promotion, and cabinet costs. This makes a profit of 4 yuan per bag. (The selling price is 12 yuan minus the 8 yuan cost.) Sales of 10,000 bags per month earn 40,000 yuan each month or 400,000 yuan per year. This is based on 300 working days.
3. Water Consumption Costs per Household:
For a typical three-person household, daily water consumption is approximately 3 kilograms. Each household consumes one bag (10 liters) every three days, costing 12 yuan per bag. Monthly, this translates to an average expenditure of 120 yuan on bagged water.
IV. Development Trends and Recommendations for Bagged Water
1. Bagged water fits the principles of resonating frequencies. It also fits the principles of resource optimization in the water industry. It provides fresh, safe, healthy, and convenient water to consumers.
2. Bagged water involves a system with three main stages. They are: making and providing, growing the market and teaching, and running and fixing.
3. The business model for bagged water focuses on community-based expansion. It requires close work with local healthcare providers. It also necessitates collaboration with property managers. This work is crucial for effective education and promotion.
4. The process should utilize financial strategies. They will assist households in being both consumers and beneficiaries. This model integrates online and offline sales. It also includes community retail, user engagement, and partnership-based entrepreneurship.
5. Despite over twenty years of development, bagged water still faces maturity challenges. Industry participants should embrace collective growth. They should have continuous communication and mutual improvement. This will ensure the healthy and orderly development of bagged water across China.
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