Demand

In developed countries, demand is driven by a variety of factors including but not limited to convenience, the perception that bottled water may be safer than local municipal water, a new clean bottle, and taste preferences.

Packaging and advertising work to foster these perceptions and brand bottled water in ways similar to branded soft drinks. Though many municipalities, particularly in the developed world, provide high-quality, highly regulated, potable water, occasional problems with contamination from commercial fertilizer, MTBE, or other contaminants are often widely publicized. Violations of tap water standards are, in the United States, openly reported, especially examples like the severe 1993 Cryptosporidium outbreak in Milwaukee, Wisconsin, which led to several deaths and around 400,000 illnesses (see: Milwaukee Cryptosporidium outbreak). The University of Cincinnati recently completed a "Tap Water Quality Analysis" (funded by PUR) for major US cities. While most cities have what is considered safe tap water, contaminants ranging from bacteria to heavy metals were present in some tap water. The actual or perceived threat from studies like this continue to drive up bottled water sales annually.

The global soft drink and bottled water manufacturing industry is expected to produce revenue of $146.5 billion in 2008, with growth projected to continue at a rate of 4 percent, with the U.S. at its forefront, producing an estimated revenue of $168.6 billion by 2012. Purified water is currently the leading global seller, with U.S. companies dominating the field. The U.S. is the largest consumer market for bottled water in the world, followed by Mexico, China, and Brazil.[5]

The global rate of consumption rose by 10 percent in 2007[citation needed]. One area of significant recent growth has been the sale of purified municipal water aimed at the low-cost, bulk purchase market; Coca-Cola Enterprises Inc. and The Pepsi Bottling Group have aggressively marketed Aquafina and the Dasani brands, turning them into mainstream successes.

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