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Beverages
Water With Benefits FUNCTIONAL OFFERINGS CONTINUE TO INUNDATE THE BE VER AGE CATEGORY. By Barbara Sax
onsumers are increasingly looking for more benefits from their beverages. Chicago-based market research firm Mintel reports that nearly one-third (31%) of bottled water users are willing to pay a premium for waters with added health benefits. Manufacturers are happy to oblige: Innovative formulations and packaging attributes have become key drivers in the functional water category, and industry experts predict continued growth in the segment over the next few years. “Functionality is the most prevalent trend in the water market as brands enhance water’s inherent healthfulness with other functional benefits,” says Caleb Bryant, associate director, food and drink at Mintel. Sales of flavored still water (which includes many functional water brands) increased 60% from 2016 to 2021, Bryant adds. “We’ve seen the functional water category explode over the past 18 months,” notes Adam Gauer, co-founder of Sheridan, Wyo.-based Plus Brand Industries, maker of Agua Plus, a pH9+ alkaline water enhanced with electrolytes and minerals. “The result is a breeding ground for even more innovation.” The popularity of functional waters is attracting major players to the category. Last year, Purchase, N.Y.-based PepsiCo introduced Soulboost, a functional sparkling water brand, in two varieties: Lift and Ease. The product contains real juice and functional ingredients. The Lift variety contains 200 milligrams of panax ginseng to help support mental stamina, and is available in blueberry pomegranate and black cherry citrus flavors. The Ease variety, formulated to help people relax, contains 200 milligrams of L-theanine, and is available in blackberry passionfruit and strawberry rose varieties. According to Gauer, the category is expanding across age demographics. “Older consumers see the added health benefits of functional waters as an opportunity to be more efficient in their pursuit of all-around better health,” he explains. Younger consumers, meanwhile, are open to options beyond supplements.
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progressivegrocer.com
More Than Just Your Average Water
Marketers can alter the makeup of water to increase health benefits, such as adding electrolytes to boost hydration, oxygen to increase energy, or hydrogen to ease inflammation. Increased hydration is popular with consumers: Mintel research indicates that 30% of them are interested in waters that provide superior hydration. “The strong growth of alkaline water opened the door for other waters that claim to provide enhanced hydration using varying elements and pH levels,” says Bryant. “Oxigen water is enhanced with oxygen and electrolytes, and Jove claims its alkaline water provides ‘cellular hydration.’” As an example of this trend, Reno, Nev.-based Takeover Industries expanded distribution of its NXT LVL Hydrogen
Key Takeaways Innovative formulations and packaging attributes have become key drivers in the functional water category. Immune support, gut health and relaxation benefits are growth areas for functional waters. Manufacturers are positioning functional sparkling waters as alternatives to alcohol.
