Flavored Water Market

• Consumer preference for healthy and organic beverages to propel market growth

As per market dynamics, the market for Flavored water is anticipated to expand due to consumers' growing preference for healthier lifestyles. Because clear liquid diets like water, juices, and other beverages are swiftly digested and leave no undigested residue in the gut, people attempting to live healthier lifestyles are attempting to include liquid diets into their eating patterns. Water that has been Flavored Water or fruit-infused provides all the hydration of a refreshing glass of water and the lively, sweet, and tangy flavors of the foods you've selected. Many individuals are influenced to drink more water by adding palatable tastes. 

Thus, flavoring water with additional ingredients can make it more palatable and even provide nutrients. Forbes, a business publication in the United States, reports that in 2020, 63% of consumers aged 50 and older and 54% of all consumers will be more concerned about the nutritional benefits of the food and drink they choose than they were in 2010. In contrast, 74% of Americans will aim to limit their sugar intake in 2020, down from 80% in 2019. Thus, a growing consumer preference for a healthy lifestyle fuels the development of Flavored water.

The number of Americans with chronic diseases will rise by 46 million, or 37 percent, between 2000 and 2030. Different population subgroups have different prevalence rates for some chronic diseases. The prevalence rose with age and was greater in women (28.4%) than in males (25.9%). Adults who were non-Hispanic white (30.6%) had the highest prevalence of multiple chronic illnesses, whereas non-Hispanic Asian (16.4%) and adult Hispanics (17.7%) had the lowest prevalence.

A crucial trend that is becoming more and more popular in the Flavored Water industry is corporate strategic alliances. Companies that produce Flavored Water products cooperate to create new technologies and goods. For instance, in January 2022, the US-based manufacturer of Flavored Water Phocus teamed up with Kroger, a US-based retailer that runs supermarkets and multi-department stores across the country. Due to the arrangement with Kroger, Phocus can now offer its goods at 185 more Kroger-owned shops located throughout Georgia, Alabama, and South Carolina.

Similarly, in February 2020, Big Watt Coffee, a US-based manufacturer and distributor of caffeinated sparkling water, and BLNCD Naturals, a manufacturer and distributor of high-quality CBD and hemp-derived goods, partnered to introduce a new line of CBD-infused sparkling water. Three kinds of these new drinks—blueberry lemon, pink grapefruit, and berry acai—are offered, each of which has a unique set of advantages. Each of the three products contains the same amount of CBD (20mg per 12-ounce can).

The increasing awareness of health and wellness among consumers appears to be a primary driver for the Global Flavored Water Market Industry. As individuals seek healthier alternatives to sugary beverages, flavored water emerges as a favorable option. This trend is particularly evident in regions where obesity rates are rising, prompting a shift towards low-calorie, hydrating beverages. In 2024, the market is projected to reach 235.94 USD Billion, reflecting a growing preference for products that offer both taste and health benefits. This shift suggests that flavored water could play a pivotal role in promoting hydration without the added sugars found in traditional soft drinks.

The Global Flavored Water Market Industry is poised for substantial growth, with projections indicating a market size of 235.94 USD Billion in 2024 and an anticipated increase to 541.32 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 7.84% from 2025 to 2035. Factors contributing to this expansion include rising health consciousness, innovative flavor offerings, and increasing demand for convenient beverage options. As consumers continue to prioritize hydration and seek alternatives to sugary drinks, the flavored water market is likely to flourish, reflecting changing consumer preferences and lifestyle choices.

The introduction of diverse and innovative flavor profiles is likely to enhance consumer interest in the Global Flavored Water Market Industry. Manufacturers are experimenting with unique combinations, such as exotic fruits and herbal infusions, appealing to adventurous consumers. This trend not only caters to varying taste preferences but also encourages trial among consumers who may not have previously considered flavored water. As a result, the market is expected to expand significantly, with projections indicating a growth to 541.32 USD Billion by 2035. This diversification in flavor offerings may also attract younger demographics, further driving market growth.

Sustainability initiatives adopted by companies within the Global Flavored Water Market Industry are becoming increasingly relevant. Consumers are more inclined to support brands that prioritize eco-friendly practices, such as using recyclable packaging and sourcing ingredients responsibly. This shift towards sustainability not only aligns with consumer values but also enhances brand loyalty. As companies respond to this demand, they may experience a competitive advantage in the marketplace. The emphasis on sustainability could potentially drive market growth, contributing to the anticipated CAGR of 7.84% from 2025 to 2035, as consumers seek products that reflect their environmental concerns.

The fast-paced lifestyle of modern consumers is likely influencing the demand for convenient beverage options, thereby impacting the Global Flavored Water Market Industry. Flavored water products are often available in portable packaging, making them ideal for on-the-go consumption. This convenience appeals to busy individuals who prioritize hydration without sacrificing taste. Retailers are increasingly stocking flavored water in various formats, including single-serve bottles and multi-packs, to cater to this demand. As a result, the market is expected to see substantial growth, with projections indicating a rise to 541.32 USD Billion by 2035, driven by the need for accessible and enjoyable hydration.

The incorporation of functional ingredients into flavored water products is emerging as a notable trend within the Global Flavored Water Market Industry. Consumers are increasingly seeking beverages that offer additional health benefits, such as vitamins, electrolytes, and antioxidants. This trend aligns with the broader movement towards functional foods and beverages, where consumers are more discerning about the nutritional value of their choices. As flavored water brands innovate by adding these functional elements, they may attract health-conscious consumers looking for enhanced hydration options. This focus on health benefits could contribute to the projected CAGR of 7.84% from 2025 to 2035, as the market evolves to meet consumer demands.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Asia-Pacific flavored water market accounted for USD 6.67 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. The growth of quick-service and full-service restaurants and rising customer desire for the product are projected to improve the market picture in the area. The demand for healthy foods and drinks has increased due to consumers being more aware of the advantages of leading a healthy lifestyle, which will help the regional market flourish.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  FLAVORED WATER MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Due to increasing product use as a healthy substitute for other carbonated beverages, the North American flavored water market had the second-largest revenue share, with over 37% in 2020. It will continue to grow at a consistent CAGR from 2021 to 2028. Numerous well-known companies in the area provide a broad variety of goods, including bubbly, AHA, Talking Rain, Nestlé Pure Life, Perrier, Schweppes, and LaCroix. As a result, product uptake in the area has been boosted by the product's enhanced accessibility.

Further, the US Flavored Water market held the largest market share, and the Canada Flavored Water market was the fastest-growing market in the Region.

Europe flavored water market controls a substantial portion of the world market. Consumers concerned about their health will find natural Flavored water and naturally carbonated waters with high quantities of minerals more enticing. Natural fruit extracts are frequently used to create the flavors that are added to the drinks. Sales of the product are robust in several nations, including Germany, the UK, Italy, Spain, and France, where it is frequently offered with meals in restaurants. Further, the Germany Flavored Water market held the largest market share, and the UK Flavored Water market was the fastest-growing market in the European Region.

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for the Flavored Water market. With significant industry changes, including new product releases, contractual agreements, mergers & acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their  presence. According to the market competitive landscape, players in the Flavored Water industry must provide affordable products to grow and remain in a market that is becoming more and more competitive.

Manufacturing locally to cut operational costs is one of the main business tactics used by the Flavored Water industry to serve customers and increase the market industry. The Flavored Water industry has recently given medicine some of the most important advantages. The Flavored Water markets major players such as Nestle, Talking Rain,  PepsiCo Inc., The Coca-Cola Company,  Hint Inc.,  Spindrift, National Beverage Corp., Sanpellegrino S.P.A.,  KeurigDr Pepper Inc. and others are working on expanding the market demand by investing in research and development activities.

La Croix, Shasta, and Faygo are some of the most well-known brands of the American beverage creator, producer, and distributor National Beverage Corp., which has its headquarters in Fort Lauderdale, Florida. Hibiscus! was a new flavor that National Beverage Corp. introduced to their LaCroix line in May 2019. The brand-new sparkling water has a distinctive hibiscus flower flavor and is free of salt, sugars, or carbs. Over the projection period, such new introductions are expected to boost category growth.

The Coca-Cola Company is a  American beverage company that was established in 1892 and is best known for being the maker of Coca-Cola. The Coca-Cola Company also produces, sells, and markets alcoholic drinks and various non-alcoholic beverage concentrates and syrups. Topo Chico was purchased by the American multinational beverage company Coca-Cola for $220 million in May 2020. Due to the acquisition, Coca-Cola has invested in a well-known brand from a market that is still expanding. The Mexican brand has joined other sparkling water options from Coca-Cola, such as effervescent Smartwater and Dasani.

The firm that produces Flavored Water beverages, Topo Chico, is in Mexico.

For instance, PepsiCo Inc. unleashed five new caffeinated sparkling waters under their Bubly brand on February this year alone. For example, mango passion fruit, blood orange grapefruit, triple berry blueberry pomegranate citrus cherry were added to the company’s list of caffeine-based drinks.

Zero calorie GOJAI Organic Caffeinated Sparkling Water launched in February 2020 with three flavors-Berry Gorilla, Orange Space Monkey; and OG Lion.

In January 2020, Keurig Dr Pepper Inc. expanded its water portfolio by buying Limitless, an American caffeine sparkling water company.

Phocus released its new Cola-Flavored water that July expanding on all other flavors, including Blood Orange, Cucumber, Grapefruit, Lime, Natural and Peach to increase the line up of its existing flavors available at Phocus.com.

In May 2021, Sparkling Spring Mineral Water Co., a popular household goods retailer was acquired by Nestle Waters. There is so much potential for these buyers since North American market leader’s position has been enhanced by this purchase into the Nestle Waters business unit.