PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1452477
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1452477
Global enhanced water market is projected to witness a CAGR of 7.95% during the forecast period 2024-2031, growing from USD 5.06 billion in 2023 to USD 9.32 billion in 2031. Factors such as consumers' health consciousness, innovations in flavor and product, endorsements of athletes, rising fitness trends and environmental concerns, convenience in portability, and on-the consumption are majorly contributing to promoting growth in the demand for the enhanced water market.
Endorsements from athletes and influencers and the rise of social media along with the popularity of fitness and sports activities contribute to the perception of enhanced water as a performance-enhancing and hydrating beverage choice. Moreover, effective marketing campaigns emphasize health benefits, hydration advantages, and unique features of enhanced water products, driving consumer interest and demand which helps the market to grow exponentially.
For instance, Grundfos, introduced SUREWATER mineral water in March 2023, which is a newly packaged mineral water launched to increase the water security in Ghana by providing affordable water and contributing towards a sustainable environment by eliminating the usage of single-use sachet water. SUREWATER will offer a refill service granting clean water access to 4,000 individuals in Otoase and 150,000 residents in Nsawam, alongside citizens from various areas of Accra. The initiative forms a segment of the broader GWI project, which strives to cultivate financially sustainable approaches for delivering water services to marginalized communities in Ghana, aiming to extend drinking water access to one million people by 2026.
Electrolyte to Dominate the Market
Electrolyte-infused enhanced water is gaining popularity due to several factors. It offers consumers a convenient and refreshing way to replenish electrolytes lost through sweating during physical activity, making it appealing to athletes and fitness enthusiasts. Moreover, the growing awareness of the importance of hydration and electrolyte balance for overall health and well-being drives the demand. Additionally, the availability of a wide range of electrolytes enhances water with the infusions of flavors and formulations catering to diverse consumer preferences, encouraging trial and repeat purchases. Moreover, the marketing emphasis on the functional benefits of electrolytes, such as improved hydration and enhanced performance, further fuels its popularity among health-conscious consumers.
For instance, Gatorade is a PepsiCo brand, announced in September 2023 for launch to expand its presence in the segment of hydration. Gatorade Water is anticipated by the company to hit the market in the first quarter of 2024. The company is aiming to target consumers preferring low and no-sugar hydration through the product driving its sales and growth in the sports drink category as well.
Sugar-Free Enhanced Water to Fuel the Growth of the Market
Sugar-free enhanced water is gaining popularity for several reasons. Amidst increasing health consciousness, consumers are seeking alternatives to sugary beverages to manage calorie intake and reduce sugar consumption, making sugar-free options more appealing. Also, sugar-free enhanced water offers hydration without the added calories, making it suitable for those following low-calorie or low-sugar diets. Moreover, effective marketing highlights the health benefits of sugar-free options further driving their popularity.
For instance, in March 2023, vitamin water, The Coca-Cola Company brand notified the additions of two latest flavors to its enhanced water product offerings, monk fruit and stevia. These products were added to its zero-sugar lineup along with an innovative reformulation, adding vitamins and nutrients. The new launches were made in convenience and grocery stores, named 'with love' and 'forever you', infused with raspberry and dark chocolate and tropical lime coconut flavors along with white curcumin, respectively. It is formulated with antioxidant vitamin C (100%), 25% of vitamin A and 30% of vitamin E. Both the drinks are full of vitamin b3, vitamin b5, vitamin b6, and vitamin b12 sources.
Sustainable Packaging to Drive the Demand Further
Increasing environmental consciousness among consumers leads to the demand for sustainable packaging solutions and eco-friendly production practices in the enhanced water market. As a result, companies are responding to environmentally conscious consumers by adopting recyclable packaging materials, reducing plastic usage, adding plant-based and paper packaging, and implementing environmentally friendly manufacturing processes to meet consumer expectations for sustainability. The emphasis on eco-consciousness aligns with consumer values and contributes to the long-term viability and success of enhanced water brands in an environmentally sensitive market landscape.
For instance, Boxed Water is Better provides sustainable alternatives to plastic bottles and aluminum cans. It launched a refreshing beverage in watermelon flavor, packed in a 500 ml sustainable carton. The classic flavor is made of drinking water which is 100% purified with sugar-free and zero added artificial sweeteners. The product is packaged in a 92 percent plant-based sustainable packaging. The lid is made from plants and has been derived from leftover waste from sustainably grown trees used for bioenergy and pulp. Boxed Water's 500mL carton has been recently certified as Carbon Neutral and using paper sourced from trees for each pack, the brand remains loyal to sustainability.
Flavored Enhanced Water to Dominate the Market
Flavored enhanced water is gaining popularity due to its appeal to consumers seeking hydration with a twist of taste. With an array of natural flavors, it offers a refreshing alternative to plain water, enticing those looking for a hydration routine. Additionally, flavored varieties often contain added nutrients like vitamins and antioxidants, further enhancing their appeal to health-conscious individuals.
For instance, in January 2024, Lemon Perfect announced the launch of its new flavors, namely, Blueberry, Coconut, and Watermelon, in the product-line of flavor enhanced water. The new bottles containing 15.2 ounce of liquid are replacing the previous 12-ounce fluid size. The newer larger bottles are adding value to consumers, being priced at USD 2.29. Lemon Perfect was made available in all 50 states of the United States, soon after its launch and in the retail stores, including Kroger, Publix, Sam's Club, Costco, Whole Foods, Albertsons, Target, CVS, and more.
Future Market Scenario (2024 - 2031F)
Ongoing innovation in the beverage industry results in the introduction of new formulations, flavors, and packaging formats, catering to diverse consumer preferences and needs, expanding the market in the future.
Manufacturers' innovative marketing strategies showcase the health benefits, advantages of hydration, and unique features of enhanced water products, contributing to their growing popularity and appeal to the consumer.
Brands of enhanced water are expanding their distribution networks to reach newer marketplaces, including convenience stores, supermarkets, gyms, and e-commerce platforms, further driving the market growth and accessibility for a positive future.
Key Players Landscape and Outlook
Key participants in the enhanced water market are driving the size of the market through product innovation, technology advancement, and strategic partnerships. The manufacturers are innovating and launching new products to cater to the dynamic needs of the consumers.
In June 2023, Nestle S.A. announced the expansion of its premium ionized alkaline water brand, Essentia Water in Canada. Utilizing a unique ionization process, Essentia produces water with a pH level of 9.5 or above, characterized by its pure and velvety flavor. After achieving success in the United States market, the product has become the leading alkaline water brand and the top-selling bottled water brand in the natural channel, Essentia is expanding its availability to several retailers throughout Ontario. These include Loblaws, Longo's, Metro, Circle K, and online platforms such as Amazon.ca, Well.ca, and others.
In February 2023, Keurig Dr Pepper Inc. launched 'perfectly pH balanced' premium enhanced water under its brand Core Hydration. The brand expanded its Core Hydration+ range of nutrient-enriched waters, formulated to support consumers' overall health with functional nutrients like Vitamin C, Zinc, L-Theanine, and Biotin, along with the infusions of real fruit extract and essences. The debut included three flavours, including Core Hydration+ Immunity consisting of Zinc and Vitamin C with a hint of lemon, Core Hydration+ Calm containing L-theanine with the taste of cucumber, and Core Hydration+ Vibrancy infused with Zinc, Biotin, and Vitamin C with the added flavor of grapefruit. These launches were available in 23.9 oz bottles which are made from 100% recycled plastic, post-consumer use.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.