Water Enhancer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Water Enhancer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Water Enhancer Market is projected to witness a CAGR of 10.4% during the forecast period.

In the global marketplace, product concentrates like water enhancers are becoming an increasingly common trend in retail. In general, smaller pack sizes provide convenience to consumers, add value for retailers in terms of valuable shelf space, and add margins to the manufacturers.

Aside from that, water enhancers can be customized to consumers' personal preferences and tastes, which positively influences their overall sales. Moreover, they are fortified with nutrients and functional ingredients, and the consumption of water enhancers is increasing globally. In addition, leading players are introducing new and innovative flavors to broaden their existing consumer base. For instance, in August 2021, UpSpring LLC introduced the U.Siip range of water enhancers for pregnant and breastfeeding women. New U.Siip Water Enhancers combine four electrolytes into a refreshing drink mix to help with hydration. U.Siip comes in two plant-based flavors, Lemon Lime and Citrus Ginger. The company claims that its products are vegan, dairy-free, gluten-free, and non-GMO, with no artificial colors, flavors, or sweeteners.

Additionally, some other factors that are expected to fuel growth include the thriving beverage and sports industries, the growing popularity of on-the-go drinks, and technological advancements in product packaging.

Customers' increasing preference for flavored beverages over carbonated beverages high in sugars and additives is expected to propel the market. Consumers prefer flavored ones over non-flavored ones owing to the variety and enhanced taste with multiple health benefits. The increasing demand for fortified beverages has led to the inclusion of essential nutrients such as amino acids, protein, vitamins, and minerals in a variety of functional drinks.

Moreover, enhanced water is primarily consumed by people who live hectic lifestyles, are engaged in high-intensity workouts and would like to prefer on-the-go products. They are available in portable packaging, which makes them easy to carry anywhere. The primary factors driving the growth of this market are rising concerns about digestive health as a result of lifestyle changes and rising demand for cleaner and healthier energy drinks or non-alcoholic beverages that might help in shaping the market for water enhancers globally.

In addition, manufacturers are offering their products with the claim of energizing or refreshing functionality through a blend of vitamins, minerals, and herbal additives which have led to the growing consumption of water enhancers. They may help meet the nutritional gap in consumers' diets without the need for vitamin pills or mixing the powder in water. The wide range of flavor options has also promoted the consumption of water enhancers in the global market. For instance, in April 2022, Robinsons, a brand of Britvic PLC, launched new water enhancer benefit drops with added vitamins in four different flavors. Benefit drops are the perfect portable format for consumers on the go as they deliver great taste and additional vitamins in their water consumption.

The market for water enhancers has been increasing at a significant rate, especially in developed or established markets like the United States, where consumers are well aware of product differentiation and have easy accessibility to growing product categories. Additionally, consumers have been looking for convenient products to keep themselves hydrated and stay healthy during their regular chores. People opt for mini-bottles of water drops, concentrated flavor enhancers that instantly transform plain water into a value-added drink, as these drops claim to contain health-based ingredients. Moreover, the shift in consumer preference for nutrient-enabled functional drinks from soft drinks (SD) increases the potential demand for water enhancers.

Additionally, owing to the rising consumer preferences for functional ingredients have led to increasing consumption of water enhancers among people seeking healthy drinking options. Consumer inclination toward herbal, natural, and plant-based or botanical extracted factors has bolstered the growth water enhancer. The rising demand for personalized beverage options is also shaping the market in the North American region.

The water enhancer market is highly consolidated and is dominated by players such as PepsiCo Inc., Nestle SA, The Coca-Cola Company, The Kraft Heinz Company, and Britvic PLC. Manufacturers now focus on broader platforms, such as online distribution channels, to market and brand their products to attract more customers.​ To attain a larger share in the market studied, manufacturers are revitalizing their product portfolios by presenting a premium-sized version of the product range through existing brands or new launches. The major companies are aiming toward the development and introduction of new package types and manufacturing processes as a strategy to deliver product categories, such as soft drinks, waters, and organic, all-natural and kosher beverages.

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