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Reusable Water Bottle Business Jones

Is it Feasible to Create a Successful Reusable Water Bottle Business in Southern California?

Prepared for Entrepreneurs

Megan Jones

[email protected]

Table of Contents

Executive Summary…………………………………………………………………………………………………………………III

Introduction……………………………………………………………………………………………………………………………….1

Background………………………………………………………………………………………………………………………1

Problem with Plastic…………………………………………………………………………………………………………1

Why Reusable Water Bottles?..............................................................................................2

Plan………………………………………………………………………………………………………………………………….2

Method of Analysis………………………………………………………………………………………………………………….…3

Results………………………………………………………………………………………………………………………………….……4

Consumer Demands…………………………………………………………………………………………………………4

Needed Resources……………………………………………………………………………………………………………5

Costs………………………………………………………………………………………………………………………………..6

Evaluation Criteria……………………………………………………………………………………………………………7

Conclusions and Recommendations…………………………………………………………………………………………..8

Conclusions………………………………………………………………………………………………………………………8

Recommendations…………………………………………………………………………………………………………..8

References……………………………………………………………………………………………………………………………….10

Figures

Figure 1. Customers’ reasons for purchasing reusable water bottles in 2018……………………………5

Figure 2. Chart displaying the best materials for a reusable water bottle…………………………………6

Executive Summary

Currently in the US, we are facing enormous issues with trash and recycling and have no effective resources to deal with these issues. We used to send our waste to China, but ever since the National Sword Policy was established, we are now stuck with our billion tons of waste. Southern California is home to many popular beaches that attracts millions of locals and tourist yearly, but it also attracts tons of trash. One of the main materials that is posing significant negative effects to the environment in Southern California, humans and natural resources is plastics. Plastic water bottles are used daily by millions of people and they are now polluting our planet. People are actively seeking out ways they can reduce the amount of plastic water bottles they use and one solution they are turning to is reusable water bottles.

Creating a reusable water bottle business during this plastic crisis would be beneficial to the consumers, producer and environment. Consumers are becoming aware about the harmful effects plastics causes which creates a high demand by consumers for affordable reusable water bottles. With this high of a demand, ever year the market for reusable water bottles goes up by millions. Implementing a business in Southern California has the potential to become very profitable in the next couple of years. The main resources needed for an online business would be a fully detailed business plan, reasonable budget, business license, investors or bank business loans in Southern California, bottle manufacturing company to produce the bottles. printing company to design the bottles, partnership with an artist to create designs and a well-designed website.

The report goes into detail about whether starting a reusable water bottle business in Southern California is feasible by meeting four criteria supported by extensive research and credible sources. It was found that this business idea would be beneficial and feasible. It is recommended to anyone who is looking to start a business to invest in starting a reusable water bottle business especially in the next couple of years. With the popularity of reusable water bottles, cost of the startup and expected market value, it is a smart investment for a business.

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Introduction

Background

Southern California inhabits millions of residents but also attracts millions of tourists every year. With these masses of people, comes a million tons of unrecyclable plastic and trash in the landfills. The old solution to get rid of all the waste was to send it to China, but in 2018 China passed the National Sword Policy declaring that they will no longer accept imported waste. On top of this, the Mercury News reported that 284 collection centers for recycling closed within the state (Rogers). With this policy in place and the closing of collection centers, Southern California needs to find another solution fast to stop the buildup of waste. One way to combat the recycling war is to use reusable water bottles. This report goes into depth about whether it is feasible to start a reusable water bottle business in Southern California.

Problem with Plastic

The main issue with using plastic is that it is not easily decomposable. Plastics are not organic, and they are made from polyethylene terephthalate (PET) which cannot be broken down by bacteria (Elkins). This makes plastics almost decomposable because it can take anywhere from 20 to 600 years to decompose with water bottles taking 450 years reported from Our World in Data by Hannah Ritchie (Ritchie). The problems that come with plastic are harm to the environment, emissions contributing to pollution, death to animals and ecosystems which all ultimately negatively impact humanity.

Why Reusable Water Bottles?

Reusable water bottles provide come with many benefits to the consumer, producer and environment.

Consumer benefits:

· Cost effective

· Better for their health

· Protecting their environment

Producer benefits:

· Cost effective and profitable

· Helping in protecting the environment

· High consumer demand

Environment:

· Reduces waste

· Prolongs natural resources

· Helps eliminate pollution

Plan

Studies have shown that Americans use an average of 50 billion plastic water bottles every year but only 23% of those plastic water bottles are recycled. That leaves about 38 billion water bottles contributing to the landfill (Speer). To show how these numbers would be significantly reduced if water bottle consumers purchased reusable water bottles, here is the math behind it. The Mayo Clinic reports that a fully gown woman need about 92 oz of water daily and men need about 124 oz daily (Nutrition). The average reusable water bottle can hold up to 32 oz of water compared to a plastic bottle which only holds 16 oz of water. By purchasing a reusable water, a woman would be saving about 2, 000 plastic water bottles yearly and a man would be saving about 2,800 plastic water bottles yearly.

Currently the most popular reusable water bottle company is Hydro Flask. Hydro Flask has introduced insulated stain-less steel bottles that have a large variety of different colors making them a very successful reusable water bottle company. They sell their bottles in stores and online which expands their business gaining consumers all around the globe. Their main weakness, which allows other reusable water bottles companies to be in the business, is their bottles are overpriced for some consumers. Creating a reusable water bottle business like Hydro Flask, but having more affordable prices, will ensure a successful business.

As people are becoming more aware about climate change and pollution, there is a high demand for products that are recyclable and reusable. In 2019, the value of the reusable water bottle market worldwide was around 8.5 billion dollars, but it is expected to increase to almost 11 billion dollars by 2025 (Conway). With consumer’s concern about pollution being at an all-time high, the expected market value and the current waste issue we are facing, it is an appropriate time to create a reusable water bottle business.

Method of Analysis

Extensive research was conducted to learn whether starting a reusable water bottle business in Southern California is feasible, and if so, what would be the most beneficial plan that will lead to a successful business.

This report will go into detail about the consumer demands, needed resources and costs to create a successful business. There will also be four criteria to help determine if this plan is feasible and they are: technological feasibility, economic practicality, social desirability, and ecological soundness.

Results

The research results and data were obtained from credible sources like KingStar, a reusable water bottle manufacturer, and Retail Insider, a website run by business experts.

Consumer Demands

Consumers are beginning to care about what they are putting in their body and what are the products they used made out of. They want products that they can trust will cause no harm to them. In an ordinance by the city of San Francisco, they made it clear that many plastic water bottles contain phthalates, a chemical known to disrupt hormones and lead to health problems like infertility, cancer, miscarriages and other health problems, which can leach into the water we drink (Environment). With this news spreading like wildfire, consumers are now turning toward the investments of reusable water bottles.

Here is a graph developed by the Retail Insight Network that looks at the consumers influence to purchase reusable water bottles (Reusable):

Figure 1. Customers’ reasons for purchasing reusable water bottles in 2018

Over half of consumers will purchase reusable water bottles because they want to reduce the amount of plastic they use, and it is more cost effective for them. This makes reusable water bottles in high demand for the current consumers in today’s market.

Needed Resources

To have a successful reusable water bottle business, these are the resources you will need:

· Fully detailed business plan

· Reasonable budget

· Business license

· Investors or bank business loans in Southern California

· Bottle manufacturing company to produce the bottles

· Printing company to design the bottles

· Partnership with an artist to create designs

· Well-designed website

Costs

Starting any small business online and in-store will be relatively costly especially in Southern California. Retail Insider, a website run by educated individuals in business, list the main estimated cost of a startup online business (What are):

· Website: $140- $5000

· Marketing: $0 with a decent website

· Wages: $0- $20,000

· Business License in California: $50- $100

· Printing company: $2.50 per bottle (How Much)

Since the whole point of this business it to help the environment, we want a reusable water bottle that is ecofriendly and safe for consumers. KingStar, a leading reusable bottle manufacturer, created a chart to determine the best material for a reusable water bottle (Thermos):

Main Materials for Reusable ECO-Friendly Water Bottle
Material	BPA Free	Suitable for Hot Beverage	Suitable for Cold Beverage	Suitable for Outdoor or Sports	Durable	Remark
Metal	Stainless Steel (grade 304)	Yes	Yes	Yes	Yes	Yes	Most Recommended
	Aluminum	Yes	Yes	Yes	Yes	Yes	Aluminum is harmful for health
Plastic	Tritan	Yes	No	Yes	Yes	Yes	Recommend if no hot drinks
	PP	Yes	Yes	Yes	Yes	Yes
	PETG	Yes	No	Yes	Yes	Yes
	Biodegradable Plastic	Yes	No	Yes	Yes	Yes
Others	Glass	Yes	Yes	Yes	No	No	Recommend if no outdoor or sports using
	Ceramics	Yes	Yes	Yes	No	No	Recommend if no outdoor or sports using

Figure 2. Chart displaying the best materials for a reusable water bottle

A reusable stainless-steel water bottle is the most safe, ecofriendly and universal water bottle to be sold on the market today. The estimated price to purchase a stainless-steel bottle would be:

· Bottle manufacturer: $2- $5 per unit

With the high demand from customers for reusable water bottles and the estimated costs, starting a small reusable water bottle business in Southern California might be a struggle at first but it can be very profitable if done the right way.

Evaluation Criteria

To determine if starting a reusable water bottle business in Southern California is feasible, four criteria needed to be met:

1. Technological Feasibility: Is there enough technology available to have successful online business and produce the products?

2. Economic Practically: Would it be economically practical to spend money for this business?

3. Social Desirability: Is there a high demand from consumers for this product?

4. Ecological Soundness: Is this business ecologically beneficial?

After analyzing all of the research and data, here are the answers to the four criteria listed above:

1. Technological Feasibility: Yes. Nowadays, it is very easy to create an online business, obtain resources from manufacturers and sell products with the technology provided.

2. Economic Practically: Yes, if done in a professional way. Starting any business will come with obstacles, but with all the positive factors surrounding a reusable water bottle business in Southern California, this has strong potential to become very profitable.

3. Social Desirability: Yes. Consumers want to reduce the amount of waste they produce and help the environment so the way they are turning towards is using reusable water bottles.

4. Ecological Soundness: Yes. This business is very ecofriendly and will significantly reduce the amount of plastic and prolong the life of natural resources.

Conclusions and Recommendations

Conclusions

This rise of plastic and trash flooding Southern California is creating a cause for concern. People are becoming aware about the harmful effects plastic brings to the environment and their health. They want to reduce the amount of waste they produce and find a cost-effective way to do so.

Purchasing a reusable water bottle is the number one solution to combat this issue. The time has never been more perfect to start a business around reusable water bottles. The four criteria were met and the cost of starting a business will be beneficial in the long run.

Recommendations

Based off of the four criteria and costs, starting a reusable water bottle business in Southern California is a feasible project to be carried out. A reusable water bottle business will provide many benefits for consumers, producers and the environment. It is recommended to anyone who is looking to start a business to create a reusable water bottle business in the next couple of years. The market for reusable water bottles is going up each year so getting started now will put your business in a good position. Consumers, especially in Southern California, are actively searching for the best quality reusable water bottle that is affordable. To get started, start searching for investors or loans and come up with a professional business plan that will ensure a successful business in the reusable water bottle industry.

References

Conway, Jan. “Size of the global reusable water bottle market from 2018 to 2025”. Statista, 3 April 2020, https://www.statista.com/statistics/935684/reusable-water-bottle-market-value-worldwide/.

Elkins, Zeke. “Ask a Scientists: Why is it so hard to decompose plastic?” Columbia Daily Tribune, 7 January 2019, https://www.columbiatribune.com/news/20190107/ask-scientist-why-is-it-so-hard-to-decompose-plastic.

Environment Code- Bottled Water. Ordinance No. 28-14, 2 (2014). Government Printing Office,

https://sfenvironment.org/sites/default/files/policy/sfe_zw_bottled_water_ordinance.p.df.

“How Much Do Custom Bottles Cost to Make”. MJS Packaging, 1 July 2014, https://www.mjspackaging.com/blog/how-much-do-custom-bottles-cost-to-make/.

“Nutrition and healthy eating”. Mayo Clinic, MFMER, 2017, https://www.mayoclinic.org/healthy-lifestyle/nutrition-and-healthy-eating/in-depth/water/art-20044256.

“Reusable water bottle sales soar as consumers reject plastic”. Retail Insight Network, Verdict Media Limited, 2 November 2018, https://www.retail-insight-network.com/comment/reusable-water-bottle-sales-soar-consumers-reject-plastic/.

Ritchie, Hannah. “FAQS on Plastics.” Our World in Data. 2 September 2018. Web. 23 June 2020.

Rogers, Paul. “California considering toughest plastic pollution laws in United States”. The Mercury News, Bay Area News Group, 11 September 2019, https://www.mercurynews.com/2019/09/11/california-considering-toughest-plastic-pollution-laws-in-united-states/.

Speer, Anh. “Reusable Water Bottles Help You Go Green and Stay Healthy”. iSustainableEarth.com, iFame Media, 6 January 2012, http://www.isustainableearth.com/green-products/reusable-water-bottles-help-you-go-green-and-stay-healthy.

Thermos Container Manufacturing. “Reusable Water Bottle: Facts and Benefits”. KingStar, KingStar Industries Co, 23 May 2019, https://www.waterbottle.tech/reusable-water-bottle-facts-and-benefits/.

“What are the Costs of Starting an Online Retail Business?” Retail Insider, Retail Insider Media, 19 November 2018, https://www.retail-insider.com/articles/2018/11/what-are-the-costs-of-starting-an-online-retail-business.

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