Water is the new gold

the_new_gold
The new gold

According to Fortune, water is the new gold for investors at this current century. During 2010, in a global scale, water generates more than half a trillion dollars in revenue. The world population will explode from 7 billion today to 10 billion by 2050, predicts the United Nations Organization. Over one billion people do not have access to clean drinking water.

Patterns of climate and weather alter the natural conditions of water. The industrial pollution makes water scarce commodity. So the good news is that huge opportunities exist for businesses to understand how to keep the pipes flowing.

Yes, this could be a hot market. So, widen your vision for a minute. How many bottles of water do you drink for one week? How much water did you use to shower? How much to wash your car? For cooking? Probably the water bills in your city have increased in the recent years.

Now ask yourself: What is going to happen in the next 40 years, when more three billion people will come to this world? Imagine adding 75 million people each year, six million per month, 200,000 every day and they all want more and more water to drink, to get showered, to cook, to do anything. All that greedily absorption of the new gold, makes it a scarce commodity.

Population is the explosive leader in the increased water demand

Within twelve short years, the world added a billion people. China’s population is 1.3 billion. Moreover, they will add another 100 million in the next generation, while India will add 600 million, according to the UN experts. China is already planning 500 new cities to accommodate all its people. Imagine 500 new cities, each home to 100,000 people or more, and this is only half of the projected growth in China till 2050, and everyone needs more water. The statistics are overwhelming. Today, Americans use 150 gallons per day, compared with 23 liters in China. Only a few decades ago, China was an emerging country, a little backward, not being a threat to the global economy. But the change happens too fast. India expects that their demand for water will double in a decade, while Fortune says that the expanding populations will also increase the demand for agricultural water with about 42 % by 2030, for two decades.

China produces the new gold for agriculture, industry and economic leadership

You might think that people consume the most of the water, says Fortune. Not so much. Agriculture represents 71% and industry 16% of the total 86% of all water in the world. It takes 71 liters to produce a single cup of coffee, and that forced „Starbucks” to reduce the water used for coffee by 25% till 2015, for example with espresso machines that need less water.

Here is the summary of Fortune for the global market of all water users: Total worldwide revenues of $ 508 billion in 2010, the bottled water market generated $ 58 billion of the total sun and is growing fast, industry needs $ 28 billion for water equipment and services for all types of businesses, other $ 10 billion cover the agricultural irrigation, other $ 15 billion go for retail products such as filters and various heating and cooling systems, $ 170 billion are used for waste water, sewage systems, wastewater treatment systems and water recycling, and finally $ 226 billion go for water companies, plants cultivation and distribution systems.

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