AUGUST 2024
The Diversification of HydrationWhere the category is going and what’s driving innovation
FOOD FOR THOUGHT
THE DIVERSIFICATION OF HYDRATION
Hydration in Today’s Market
Hydration products have come a long way. From the early focus on children’s health, the market has evolved dramatically, catering to a diverse range of needs for people of all ages.
From advanced electrolyte drinks designed for athletes to convenient, nutrient-rich hydration solutions for busy professionals and wellness enthusiasts, the industry is thriving with innovation.
This shift reflects a broader understanding of hydration’s role in overall health and performance, addressing everything from fitness recovery to daily wellness. Join us as we explore the latest trends and breakthrough products shaping the future of hydration.
THE DIVERSIFICATION OF HYDRATION
Hydration is for All
Proper hydration enhances athletic performance, speeds up recovery, and helps maintain peak physical condition during workouts
ATHLETES
Consistent hydration supports children’s growth, cognitive function, and overall health, keeping them active and focused throughout the day
CHILDREN
Staying hydrated helps regulate body temperature, prevent heat exhaustion, and keep you cool during hot weather
BEAT THE HEAT
Replenishing fluids aids in alleviating hangover symptoms, restoring electrolyte balance, and speeding up recovery
HANGOVER RECOVERY
Adequate daily hydration supports optimal bodily functions, boosts energy levels, and promotes overall well-being
DAILY WELLNESS
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THE DIVERSIFICATION OF HYDRATION
* % Represents % Change YoY (vs same time LY)
Hydration – Not Just For the Summer
Though we see an obvious spike in sales in the summer, hydration products still rake in at least $750M per month. This shows just how popular this category is throughout the year.
Hydration & Electrolytes 4-Week Trend
Summer 2023
Summer 2024
TRIED & TRUE: LIQUIDS
TRENDING
The Standard Water
+2%
Other Hydration Bevs
+2%
Powder
+95%
Non-Carbonated
+2%
Sparkling
+5%
Non-Carbonated
+2%
Carbonated
+6%
Tablet
+11%
Enhanced Water
+13%
Unflavored Sparkling
+10%
Sports & Rehydration Liquids
+3%
Liquid Shot
+16%
Coconut & Plant Water
+9%
Gummy
+100%
RF & SS Juice
+10%
DECLINING:
Effervescent Tablets Capsules
Although the focus is on innovation beyond the standard Water category, we acknowledge that Water holds over 60% of the $ share combined with all other hydration products. However, it’s all other hydration products gaining $ share.
One thing Water and Other Beverages share is that Sparkling/ Carbonated is growing the fastest.
Sports and Rehydration drinks also dominate in hydration, but other types outpace its growth. Consumers continue to reach for natural alternatives like Coconut & Plant Waters as Juice brands combat their high sugar reputation with added hydration.
The innovation is largely happening in other forms of hydration where we see accelerated growth for Powders and Gummies but also seeing declines for capsules and effervescent tablets.
As brands continue their hydration innovation journey, turn to those natural hydrating food products and ingredients for inspiration.
THE DIVERSIFICATION OF HYDRATION
How we hydrate: Beyond water & into all its newer forms
Innovation beyond nature water is driving dollar share growth in hydration.
Source:Total US MULO + Convenience& Total US Natural ExpandedChannel, L52W Ending06/16/2024
Bolthouse Farms™ Hydration Plus Strawberry Acai Juice, 15.2 fl oz – Kroger
Natural
Bolthouse Farms™ Hydration Plus Strawberry Acai Juice, 15.2 fl oz – Kroger
Powder Packaging | Nellson LLC
Non
THE DIVERSIFICATION OF HYDRATION
Source:Total US MULO + Convenience& Total US Natural ExpandedChannel, L52W Ending06/16/2024
Sugar or Zero Sugar: What’s resonating with consumers?
Is sugar needed in hydration formulas?
Sugar Level
Dollars
Dollars % Chg, YAGO
Attribute Share % Chg
0 SUGAR (< 0.5G)
$2,300,428,961
1.9%
0%
0.5 TO < 5G
$819,907,668
23.3%
1%
5 TO < 10G
$68,711,052
-19.3%
0%
10 TO < 15G
$729,345,582
-0.0%
0%
15 TO < 20G
$511,353,635
16.6%
1%
20 TO < 25G
$2,881,927,948
1.9%
0%
25G OR MORE
$3,758,936,464
-3.37%
-2%
Sales by Sugar Level for Hydration Products in RTD Beverages
Sugar’s role in hydration is in its ability to co-transport ‘electrolytes’ and also provide quick simple carbs which might be needed for a rigorous workout.
For the vast majority of consumers who need it for light activities or the average workout, zero sugar or some light sugars are enough to help replenish the body in terms of hydration.
When looking at the data for RTD Beverages in the Hydration category, we can see that in terms of market share, products with sugar levels of 25g or more, 20g to <25g and zero sugar round out the top 3.
The top growing segments though are products with sugar levels within the 0.5 to <5g range as well as the 15 to <20g range.
In terms of sweeteners, products using sucralose are seeing 10% growth in terms of year-over-year sales and though products containing agave nectar represent a small portion of the market, they are seeing strong sales in this RTD beverages segment.
Strawberry Banana | BODYARMOR Sports Drinks | Superior Hydration
Prime Strawberry Watermelon Sports Drink Bottle, 16.9 fl oz – Kroger
THE DIVERSIFICATION OF HYDRATION
Source:Total US MULO + Convenience& Total US Natural ExpandedChannel, L52W Ending06/16/2024
Zero Sugar: A Fast-growing Segment in VMS
Though Zero Sugar is a ‘newer’ segment in VMS hydration, it is seeing strong growth
Looking at hydration products in the VMS department, we can see the only segment experiencing a decline in sales is the 15 to <20g sugar range which also happens to be the smallest segment in terms of market share.
The top growing segments include both Zero Sugar and the 0.5 to <5g sugar range. Though Zero Sugar is an established segment in terms of Hydration in the RTD beverage world, it is still an up-and-coming one in the VMS department.
Zero Sugar hydration products are finding their footing and have seen over 95% growth year-over-year as consumers gravitate towards products with zero to low sugar.
In terms of sweeteners within the VMS hydration segment, products with sweeteners like stevia, allulose and others are seeing strong growth as a lot of the growth in this category has been driven by the low sugar category.
Sugar Level
Dollars
Dollars % Chg, YAGO
Attribute Share % Chg, YAGO
0 SUGAR (< 0.5G)
$157,308,970
95.3%
6%
0.5 TO < 5G
$67,393,552
80.2%
2%
5 TO < 10G
$25,259,653
17.6%
-1%
10 TO < 15G
$406,653,641
35.2%
-6%
15 TO < 20G
$260,098
-21.9%
0%
Sales by Sugar Level for Hydration Products in VMS
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THE DIVERSIFICATION OF HYDRATION
Source:Total US MULO + Convenience& Total US Natural ExpandedChannel, L52W Ending06/16/2024
Hydration FlavorsExpandBeyond Soda& Juice
While popular juice and soda flavors like fruit blends, lemon lime, and grape continue to dominate inhydration,thesegmentis starting to takeinspirationfroma wider setof beverage traditions,likemixeddrinksandseasonalfavorites
Grape
Fruit Blends
Functional
Lemon Lime
Dollar Sales
$909M
$2.6B
$1.2B
$1B
Dollars % Chg, YAGO
+10%
+3%
+2%
+6%
Average Items on Shelf
15items with thisflavor on the average retail shelf
34items with thisflavor on the average retail shelf
8items with thisflavor on the average retail shelf
12items with thisflavor on the average retail shelf
Flavor Essentials:
TheLargest Sales Volume, Most Space On Shelf,And SteadyGrowth
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These classic flavors, deeply rooted in consumer preferences, remain central to a beverage brand’s lineup due to their established popularity and enduring appeal. They drive substantial sales and provide consistent year over year growth, underscoring their importance as mainstays in the industry. As these flavors consistently perform well, they reaffirm their role in shaping market trends and maintaining brand loyalty.
THE DIVERSIFICATION OF HYDRATION
Source:Total US MULO + Convenience& Total US Natural ExpandedChannel, L52W Ending06/16/2024
Hydration FlavorsExpandBeyond Soda& Juice
While popular juice and soda flavors like fruit blends, lemon lime, and grape continue to dominate inhydration,thesegmentis starting to takeinspirationfroma wider setof beverage traditions,likemixeddrinksandseasonalfavorites
Flavors To Watch:
Small In SalesAnd ShortOn Shelf Space, But GrowingRapidly
Lemonade
Tropical Punch
Apple
Pina Colada
Dollar Sales
$51M
$29M
$12M
$8M
Dollars % Chg, YAGO
+193%
+94%
+102%
+17%
Average Items on Shelf
3items with thisflavor on the average retail shelf
2items with thisflavor on the average retail shelf
2items with thisflavor on the average retail shelf
1items with thisflavor on the average retail shelf
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These innovative options offer a fresh twist on traditional beverages, capturing emerging consumer interests and reflecting a shift towards more adventurous tastes. Although they might not yet have the extensive reach of classic flavors, their rapid growth signals a growing demand and potential for significant impact in the market.
THE DIVERSIFICATION OF HYDRATION
Source:Total US MULO & Total US Natural ExpandedChannel, L52W Ending07/14/2024
The Evolution of Children’s Hydration Products
From Pedialyte to Modern Innovations – How Hydration Solutions for Kids Have Evolved
Since the introduction of Pedialyte in the 1960s, hydration products for children have seen remarkable advancements. Initially designed to treat dehydration caused by illness, Pedialyte set the stage for a range of specialized products.
Today, the market includes a variety of solutions—from electrolyte-rich drinks to flavored waters—each catering to different needs and preferences. These innovations continue to support children’s health, making proper everyday hydration more accessible and appealing.
Hydration Products
Positioned for Children:
+1179%
YoY $ Growth
All Hydration Products:
+5.5%
YoY $ Growth
Kids’ hydration has evolved from condition-based hydration to everyday hydration
Pedialyte Classic Oral Rehydration Solution in Four Flavors
A shocking study1 published in 2015 noted that over 50% of US children are inadequately hydrated; in recent years, brands are seizing the opportunity to develop healthier options for everyday hydration.
Source:Total US MULO + Convenience& Total US Natural ExpandedChannel, L52W Ending06/16/2024
1.
www.hsph.harvard.edu/prc/2015/06/11/half-us-children-under-hydrated
THE DIVERSIFICATION OF HYDRATION
Source:Total US MULO + Convenience& Total US Natural ExpandedChannel, L52W Ending06/16/2024
1.
www.hsph.harvard.edu/prc/2015/06/11/half-us-children-under-hydrated
Finding the Sweet Spot: Balancing Nutrition, Taste and Budget-Friendly Options for Kids’ Daily Hydration
A shocking study1 published in 2015 noted that over 50% of US children are inadequately hydrated; in recent years, brands are seizing the opportunity to develop healthier options for everyday hydration.
Kids’ RTD: Brands have invested heavily in kids’ RTD hydration in recent years, with Kraft Heinz launching Creative Roots and Michelle Obama introducing Plezi. However, Kraft Heinz has since discontinued Creative Roots. High price points and the challenge of persuading kids to choose low-sugar options may be obstacles for everyday kids’ hydration solutions.
Kids’ Hydration Packets: In 2023, Liquid IV, a major name in hydration, launched a kids’ line. The main difference from the original is that the kids’ version has half the quantity (8g vs 16g), resulting in fewer calories, reduced sodium & sugar, and lower levels of vitamins and minerals. There may be additional opportunities to capture the children’s segment. This market may provide a more affordable, sustainable alternative to RTD options and fulfill a substantial need for encouraging children’s healthy hydration
Tropical Punch
Kids’ RTD:
Creative Roots:
Launched in 2020, discontinued
Plezi:
Launched in 2023
Packets:
Liquid IV for Kids:
Launched in 2023
Kids
Original
Size
8 grams
16 grams
Calories
25
45
Sugar
6 grams
11 grams
Sodium
250 mg
500 mg
Source:Total US MULO + Convenience& Total US Natural ExpandedChannel, L52W Ending06/16/2024
THE DIVERSIFICATION OF HYDRATION
Source:Total US MULO + Convenience& Total US Natural ExpandedChannel, L52W Ending06/16/2024
What’s Next on the Hydration Horizon?
Newer entrants in hydration are mixing it up with refreshing forms that build on a continued demand for simple, portable solutions that are both accessible and appealing to the everyday water drinker
Microlyte BERRY with electrolytes: Order now | waterdrop®
Tablets & Cubes
After Nuun’s success in tablets, hydration brands continue to experiment with on-the-go-friendly forms. Dissolvable hydration cubes like those from Waterdrop offer a fresh take and, like other tablets, cut down on plastic packaging as a win-win.
Hydration Drops
Unlike typical sports drinks, Hydration drops are unsweetened and unflavored. Brands like Buoy and Trace Minerals mark a trend of incorporating natural trace minerals (essential to the body in small amounts, like boron or iron) for more functional hydration.
Hydration Gummies
While gummies are well-saturated in other VMS aisles, there are just a handful of Gummy forms hitting Hydration (so far!). Good for adults and kids alike, in this space they are also reminiscent of the energy chews already popularized by runners and athletes.
Nature’s Truth Electrolyte Gummies for Hydration | 48 Count | Vegan, Non-GMO & Gluten Free Supplement | Lemon Flavor
Hydration Liquidsunder 5oz:
+15%
YoY $ Growth
~1/3 of Tablet growth vs YA came from:
NEW Items
Hydration Gummies:
+100%
YoY $ Growth
As Hydration beverages get more and more inclusive, brands and consumers are expanding their definitions by a) incorporating secondary benefits and b) looking to nature for new inspiration
THE DIVERSIFICATION OF HYDRATION
*Watermelon Juice comprises 100% of Hydration-Benefit beverages in product type “Plant Water Other”
Source:Total US MULO + Convenience& Total US Natural ExpandedChannel, L52W Ending06/16/2024
What’s next on the Hydration Horizon?
As Hydration beverages get more and more inclusive, brands and consumers are expanding their definitions by a) incorporating secondary benefits and b) looking to nature for new inspiration
Amazon.com: Nuun Sport + Caffeine: Electrolyte Tablets, Fresh Lime, 1 Tube (10 servings) : Health & Household
Ready Nutrition | fusionsportspr
Hydration Plus
Multi-functional hydration is having a moment, led by top brands’ line extensions. In combining two key workout priorities, Ready Protein water may be an indicator of the next “plus” to come.
Immune Support | Liquid I.V.
+ Immunity
Incorporating citrus flavors and/or vitamin C
+ Energy
Natural caffeine sources like green tea extract or matcha
+… Protein?
Supplementing hydration with whey or a plant-based source could be next on the horizon
Nature’s Hydration
Thirst-quenching is not limited to sports drinks and waters. In fact, many natural fruit and plant-based juices are calling out their own Hydration benefits on pack.
Coconut Water
Coded for Hydration Benefit
Aloe Juice/Drink
Coded for Hydration Benefit
Watermelon Juice
Coded for Hydration Benefit*
Pickle Juice
Coded for Hydration Benefit
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YoY $ Growth
+9%
+21%
+26%
+16%
FOOD FOR THOUGHT
Meet the Food for Thought Newsletter Team
Lottie Lawlor
Acct Manager,Channel Partners
Evonne Chan
Data Analyst
Anna Fabbri
Sr Analyst, Client Insights
Zoë Colón
Sr Analyst,Client Insights
Ivette del Villar
Acct Manager, Channel Partners
Katie Eilert
Manager, Growth Consulting
