“Virtual water” means the total water used in producing a good or service. The total amount of water, which has been used for producing a good, is calculated by taking into account water from all sources that is directly used in production as well as incorporating the water indirectly used (FRONTIER 2008). It is called virtual because the final good no longer contains the amount of total water which had to be used to produce it. For the same reason, it is sometimes also referred as embedded, embodied or hidden water.
The term of Virtual Water refers to the fact that every good contains water, which has been used to produce the good. The adjective “virtual” means that the water is not necessarily contained in the final product. This measure of the amount of water, which has been used to produce the good, is carried out by adding the volume of freshwater consumed during the entire production chain (WATERFOOTPRINT 2010). This concept is sometimes also called the water footprint of a product, though with the same aims: Both concepts visualise the amount of “hidden” water that has been utilised for production. This is important to show because the production of goods is a global business today. As a result of global trade, the use of water has become spatially disconnected from the consumers (HOEKSTRA et al. 2009). At the same time, there are signs that the use of water exceeds a sustainable level in many parts of the world (MEKONEN & HOEKSTRA 2010). So, the concept of Virtual Water helps us to understand the global character of fresh water use which includes quantifying the effects of consumption and trade with water resources (HOEKSTRA et al. 2009).
(Adapted from HOEKSTRA 2009)
Water used during the production of any good can be divided into three different types of water, depending on the source of water and the type of pollution caused. Blue water means the amount of surface water (like lakes and rivers) and groundwater consumed. This blue water is used for irrigation and is lost through evaporation/runoff or because of incorporating into a product. The second part is called green water, i.e. , rainwater, the main source of water for rain-fed agriculture. Some of the rain water is being stored in the soil and can be used by plants. Both, green and blue water can vary of course within a year and from year to year as well. Finally, the grey water involves the water which has been polluted during he production (see also water pollution). It is defined as the volume of freshwater that is required to assimilate the load of pollution.
Even if the concept is simple and well understandable, it is not easy to calculate the whole amount of water which has been used for a product. This is mainly because of the fact that every product has its own producing history. Nevertheless, most of the calculations are based on two different approaches. The first one is called chain-summation approach and is calculated, as the name suggests, by taking account all process steps during the whole production of a product. However, this approach can only be applied if a production system produces only one output product.
In a case where many products are necessary to produce an output product, the amount of water used is calculated by summing the water use of the input products and by adding the water consumed during each processing step. This is called the step-wise approach (HOEKSTRA et al. 2009).
In general, livestock products generate a much higher virtual water content than crop products. As an example, a cow needs approximately 3 years until it can be slaughtered for 200 kg of beef. During this time, a cow consumes nearly 1300 kg of grain, 7200 kg of roughage and 31’000 kg of water for drinking and servicing. Of course, the production of feed also requires water, so that with every step of food processing, part of material is lost because of selection and inefficiencies. The higher a product is positioned in a product chain, the higher will be the virtual water content of the product (CHAPAGAIN & HOEKSTRA 2004).
The units which express the virtual water content are in terms of cubic metres of water per ton of the product (=litres/kg). Below there are some virtual water contents of chosen products.
Goods are today being exported and imported all over the world. This implies that the virtual water content is also traded with the goods. So, the virtual water concept can be used to highlight the pressure on the available domestic water resources. The import of virtual water can be seen as an alternative water source (CHAPAGAIN & HOEKSTRA 2004). Furthermore it can be applied as an instrument to achieve water security as well as efficient water use. From an economic perspective, it makes sense to produce the water-intensive products in those places where water is most abundantly available. Virtual water trade from a nation where water is more than abundant to a nation where water is often scarce can effectively help to save water as seen from a global perspective (HOEKSTRA 2003). In order to show how a country performs in terms of water trade, it is helpful to quantify the flows of virtual water leaving and entering the country (CHAPAGAIN & HOEKSTRA 2004). If the resulting number is negative, the respective country imports more virtual water than it exports. This can be a sign of high water scarcity as one would expect. But there are countries which exhibit a low water scarcity and therefore should show a positive virtual water balance. However for different reasons, those countries (e.g. Indonesia) still have to rely heavily on virtual water import and therefore a net import of water can be noticed (HOEKSTRA 2003).
It is estimated, that the virtual water trade between nations lies in the range of approximately 1040 × 109m3/year of which 67 % relates to international trade of crops, 23 % to trade of livestock and 10% to trade of industrial products (HOEKSTRA 2003).
National virtual water trade balances over the period 1995-99. The red colours represent net import whereas green colours show net export. Source: HOEKSTRA (2003)
See concept to learn more about sustainable approaches to water and wastewater management.

CHAPAGAIN, A. K.; HOEKSTRA, A.Y. (2004): Water Footprints of Nations - Volume 1: Main Report. Delft: UNESCO-IHE, Institute for Water Education. URL [Accessed: 12.10.2010]. PDF
FRONTIER (Editor) (2008): The Concept of “Virtual Water” – A Critical Review. Melbourne: Frontier Economics Pty Ltd. URL [Accessed: 13.03.2012]. PDF
HOEKSTRA, A.Y. (2003): Virtual Water Trade. Delft: UNESCO-IHE, Institute for Water Education. URL [Accessed: 12.10.2010]. PDF
HOEKSTRA, A. Y.; CHAPAGAIN, A. K.; ALDAYA, M. M.; MEKONNEN, M. M. (2009): Water Footprint Manual. Enschede: Water Footprint Network. URL [Accessed: 12.10.2010]. PDF
MEKONEN, M.M. ; HOEKSTRA, A.Y. (2010): A Global and High-resolution Assessment of the Green, Blue and Grey Water Footprint of Wheat. In: Hydrology and Earth System Sciences 14, 1259-1276. URL [Accessed: 12.10.2010]. PDF
TREEHUGGER (Editor) (2008): Virtual Water. New York: Treehugger. URL [Accessed: 27.03.2012].

BARILLA (Editor) (2012): Double Pyramid 2012: enabling sustainable food choices. Parma: Barilla. URL [Accessed: 29.01.2013]. PDF
To meet the food and nutrition needs of a richer, more urbanised world with a growing population, it is essential to popularise sustainable eating habits. The Food and Environment Double Pyramid model, which has undergone its third update since 2010, reinforces this theory by confirming the close connection between healthy eating and sustainable eating.
CHAPAGAIN, A. K.; HOEKSTRA, A.Y. (2004): Water Footprints of Nations - Volume 1: Main Report. Delft: UNESCO-IHE, Institute for Water Education. URL [Accessed: 12.10.2010]. PDF
The study tries to analyse and to collect the water footprints of nations. The water footprint of a nation consist of the total amount of used domestic water resources plus the virtual water flows entering the country minus the flows leaving the country.
HOEKSTRA, A.Y. (2003): Virtual Water Trade. Delft: UNESCO-IHE, Institute for Water Education. URL [Accessed: 12.10.2010]. PDF
This proceeding reports results from the International Expert Meeting on Virtual Water Trade. It contains several studies on virtual water trade. Most of them deal with calculations of the amount of traded virtual water between nations and their virtual water balance.
HOEKSTRA, A. Y.; CHAPAGAIN, A. K.; ALDAYA, M. M.; MEKONNEN, M. M. (2009): Water Footprint Manual. Enschede: Water Footprint Network. URL [Accessed: 12.10.2010]. PDF
This manual represents a complete and up-to-date overview of assessing water footprints. It shows how water footprints are calculated for individual processes and products as well as for consumers and nations.
MEKONEN, M.M. ; HOEKSTRA, A.Y. (2010): A Global and High-resolution Assessment of the Green, Blue and Grey Water Footprint of Wheat. In: Hydrology and Earth System Sciences 14, 1259-1276. URL [Accessed: 12.10.2010]. PDF
A paper which deals with the virtual water content of wheat. The assessment is made on a global level and includes the exploring of green, blue and grey water used during wheat production.
WWF (Editor) (2010): Switzerland’s Water Footprint. Zurich: WWF Switzerland. PDF
This document contains information about Switzerland’s role in the global virtual water trade.
ZIMMER, D. ; RENAULT, D. (n.y.): Virtual Water in Food Production and Global Trade – Review of Methodological Issues and Preliminary Results. Rome: Food and Agriculture Organisation of the United Nations (FAO). URL [Accessed: 12.10.2010]. PDF
This paper contains an attempt to quantify all virtual water volumes traded between nations and continents. Transfers from more abundant production sites to lower performing sites are of particular importance because this implies that water has been saved.
FRONTIER (Editor) (2008): The Concept of “Virtual Water” – A Critical Review. Melbourne: Frontier Economics Pty Ltd. URL [Accessed: 13.03.2012]. PDF
This note examines the methodology for estimating virtual water and identifies several important flaws in the virtual water concept. These flaws render the virtual water concept meaningless and casts serious doubts on the wisdom of applying the concept of virtual water to draw conclusions regarding the desirability or otherwise of alternative production activities.
http://www.unesco-ihe.org/ [Accessed: 12.10.2010]
A short summary of the Virtual Water Trade Research Programme. There are also some further readings about the topic of virtual water trade listed.
http://www.virtualwater.eu/ [Accessed: 18.11.2010]
This website provides information about the concept of Virtual Water and, perhaps more important, tries to raise awareness for this project. Big posters can be ordered which show selected products and the amount of used water.
http://www.waterfootprint.org/ [Accessed: 12.10.2010]
In this section on the water footprint homepage, almost 50 publications containing further information on every aspect of virtual water can be downloaded.