Zenith Global 2016 Flavoured- Functional Water Innovation Report

zenithinternational 2016 Functional Water Innovation A review of recent key trends and new product development

January 2016

Research Note In undertaking its research for this report, Zenith has utilised its internal data library and global databases, alongside other third party sources and interviews with the industry. Throughout its on-going research, Zenith also depends upon the goodwill and co-operation of operators active in the marketplace, and, as such, seeks to achieve a high level of accuracy.

Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith International Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information.

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Contents

The contacts at Zenith International in connection with this report are: Monika Fedor Consultant Zenith International Ltd., UK Tel: +44 1225 327936 mfedor@zenithinternational.com Esther Renfrew Market Intelligence Director Zenith International Ltd., UK

Section

Page

1. Introduction and scope

4

2. Category overview

7

    

Overview of common features Commentary - global trends and developments Commentary - new product development trends Challenges and barriers Insights and opportunities

3. Brand profiles

17

Tel: +44 1225 327900 erenfrew@zenithinternational.com

3.1 Brand profiles: Innovation in functional claims

18

3.2 Brand profiles: Innovation in functional ingredients

32

Zenith International Ltd 7 Kingsmead Square Bath BA1 2AB United Kingdom T +44 (0) 1225 327900 F +44 (0) 1225 327901 www.zenithinternational.com

3.2 Brand profiles: Innovation in still functional water

43

3.3 Brand profiles: Innovation in sparkling functional water

60

3.4 Brand profiles: Innovation in children’s functional water

69

3.6 Brand profiles: Innovation in packaging

75

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zenithinternational 1. Introduction and scope

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Introduction and scope Functional water innovation

Overview The aim of this report is to assess developments in the functional water sector, identifying and summarising trends and new innovations in order to understand what opportunities exist for new product development.

Scope A global market overview of trends and developments - tracking recent innovation within the category and investigating the future outlook for the market.

Categories covered in this report:      

Functional claims Functional ingredients Still functional water Sparkling functional water Children’s functional water Innovation in packaging

Products profiled in this report contain features that span a number of trends shaping the future of the functional water sector, including:

        

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Natural ingredients Natural sweeteners Diversified flavour offerings Energy waters Beauty and wellness waters Vitamin waters Protein waters Innovative functional ingredients and claims Minimalist packaging

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Introduction and scope Functional water innovation

Definition: Functional water For the purpose of this report, Zenith has limited its research scope using the following definition:  Functional waters include flavoured water with added functional ingredients, such as botanicals, vitamins, minerals, oxygen or other, as well as flavoured waters marketed with functional positioning Exclusions

 Waters with added functional ingredients but without added flavour  Coconut water based beverages Coverage Innovation and new product development shaping the global market for functional water launched from 2013 to 2016

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zenithinternational 2. Category overview

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Category overview Overview of common features Functional waters have been formulated using a variety of ingredients with specific functional claims.

Common features are summarised in the table below:

FEATURE

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BENEFIT

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Category overview Commentary - global trends and developments

Global and regional trends in the market for functional water

 Commentary.

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Category overview Commentary - global trends and developments (continued)

Functional water growth by region, 2015 estimate

 Diameter of bubbles represents the size of market in region (min litres) 30.0%

25.0%

Volume CAGR % 2013-2015e

20.0%

Region 1

15.0%

10.0%

5.0%

0.0% 0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Region 2 -5.0%

-10.0%

Per Capita Consumption 2015e

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Category overview Commentary - global trends and developments (continued)

Global trends and developments in functional water consumption  Commentary

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Category overview Commentary - new product development trends

Innovation in functional water claims  Commentary

Innovation in functional water ingredients  Commentary

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Category overview Commentary - new product development trends (continued)

Innovation in still and sparkling functional water  Commentary

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Category overview Commentary - new product development trends (continued) Innovation in children’s functional water

 Commentary

Innovation in packaging  Commentary

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Category overview Functional water category challenges and barriers

CHALLENGES AND BARRIERS

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Category overview Functional water category insights and opportunities

INSIGHTS AND OPPORTUNITIES

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zenithinternational 3. Brand profiles

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zenithinternational 3. Brand profiles

3.1 Innovation in functional claims

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Innovation in functional claims Energy

Hint Kick Hint, USA https://www.drinkhint.com

Product information: Flavoured water brand Hint have entered into the enhanced water market with the launch of line extension Hint Kick. Hint Kick is a fruit infused water enhanced with 60mg of natural caffeine from coffee beans (per bottle). The water is all natural, and contains no sweeteners, calories or preservatives. Available in 3 flavour variants the water has been created to meet the needs of consumers seeking an alternative energy beverage to energy drinks and coffee.

Launch date: August 2015

Variants: Apple Pear Hint Kick, Lemon Cayenne Hint Kick, Black Raspberry Hint Kick Ingredients: Water, flavoured with fruit oils and essences Positioning & Channels: Online and in select stores (with additional retailers expected through 2015) Pack size & type: PET bottle: 16fl.oz Price: US$1.69 for 16fl.oz bottle

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zenithinternational 3. Brand profiles

3.2 Innovation in functional ingredients

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zenithinternational 3. Brand profiles

3.3 Innovation in still flavoured functional water

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zenithinternational 3. Brand profiles

3.4 Innovation in sparkling flavoured functional water

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zenithinternational 3. Brand profiles

3.5 Innovation in children’s flavoured functional water

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zenithinternational 3. Brand profiles

3.6 Innovation in packaging

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