The global enhanced water market size to be valued at USD 11.3 billion by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 8.3% during the forecast period. The rising importance of hydration drinks among consumers on a global level is expected to have a positive impact on the industry. Enhanced water contains various minerals like potassium, sodium, and magnesium that help in maintaining the ionic balance of the body. Many enhanced water products also contain carbohydrates, which help in refueling the body. The market for enhanced water is expected to witness substantial growth in the coming years owing to growing awareness regarding the adverse effects of dehydration on health. These products are composed of functional food ingredients, such as plant-based ingredients, plant waters, and fruit and vegetable extracts. Plant-based water is available in flavors including artichoke, watermelon, cactus, maple, birch, aloe vera, coconut, pressed lettuce, and sweet potato.
In addition, increasing demand for cleaner and healthier energy drinks has led to the creation of innovative products, which are blurring the lines between enhanced water, hydration drinks, and energy drinks. Thus, contemporary products contain caffeine, guarana, ginseng, and taurine, which are stimulants. With growing consumer preference for herbal-based products, companies operating in the market for enhanced water are increasingly launching products containing herbal ingredients such as milk thistle and other plant extracts that helps in protecting the liver. With the rising importance of herbal supplements, the industry participants are focusing on incorporating herbal extracts, such as green tea extract, and gotu kola, in their finished goods for improved blood circulation and advertising them in a preposition of sugar-free or gluten-free products.
Earlier, enhanced water was considered to be fit only for sports and fitness enthusiasts. However, with changing lifestyles and increasing focus on health, hydration drinks are consumed by people from all squares and of all age groups, including students as well as pregnant women and feeding mothers. These drinks provide liver support, restore essential nutrients, help rehydrate, and boost energy.
One of the key developments in the effective water market is the increasing requirement for freshness, wholesome, and moisturizing liquors. Customers' growing preference for flavored beverages over carbonated beverages loaded with sugars and additives is expected to drive the market forward. Urbanization and rising consumer preferences for bottled water for outdoor use are driving the market growth. Fatigued lifestyles and high gastrointestinal health concerns is driving the market forward. The increasing awareness of the adverse effects of water loss on general health is propelling the demand for better water.
Owing to the variety and enhanced taste, consumers prefer flavored ones over non-flavored ones. According to sales figures, apple and peach flavored drinks are the most popular. Enhanced water drinks are fortified with various vitamins and minerals, thereby increasing the overall nutritional value, and fuelling the industry growth.
The omission of a completely nutritious drink and a lack of knowledge about the product is limiting the growth of the global market. Additionally, the high-cost requirement for storage facilities to the product's quality and freshness is hampering the market growth.
The addition of vital nutrients such as amino acids, protein, vitamins, and minerals in various functional drinks is attributed to the rising demand for fortified beverages. The introduction of new and creative forms of functional water by beverage production companies with modified protein and mineral mixes is expected to provide a lucrative opportunity for the global market.
Flavored enhanced water contributed a share of more than 61.0% in the global revenue in 2019 in the market for enhanced water. These products help in creating a unique place in people’s diets who prefer a certain flavor. In June 2020, Feel Good Organic Superfoods, announced plans for the launch of a super food-enhanced beverage line known as Feel Good Organic Super water.
Plain enhanced water is expected to register the fastest growth during forecast years with a CAGR of 8.6% from 2020 to 2027. These products are made to replace the regular water in the daily diet as they are consumed among consumers who have allergies regarding consumption of any specific flavor.
The offline contributed a share of more than 70.0% in the global revenue in 2019 in the market for enhanced water. The offline distribution channels include pharmacies, chemist shops, drug stores, hypermarkets and supermarkets, and retail channels in airports, hotels, and cinemas. Higher product visibility across retail outlets such as CVS Health, Safeway, Walmart, Walgreens, and Target, is a favorable factor. The manufacturers mostly depend on retail stores to distribute their products. Agents and wholesalers are also employed for product distribution in the market. The wholesalers buy products in bulk from the manufacturers, divide them into small packages, and distribute them to retailers, who then sell the products to end customers.
The online is expected to register the fastest growth in the industry for enhanced water during forecast years. The segment is expected to witness a CAGR of 9.1% from 2020 to 2027. The online distribution channels include e-commerce channels either hosted by manufacturers or by third parties. It has been observed that omnichannel retail is the new trend among manufacturers in the industry and thus, players established in the online market are expanding their sales through brick and mortar channels and vice versa. In June 2020, The Alkaline Water Company Inc. launched a new DTC website Alkaline88.com, where the buyers can purchase the products.
Americas dominated the market for enhanced water and accounted for a revenue share of over 45.0% in 2019. Increasing focus on hydration owing to the rising trend of health and fitness is expected to increase the consumption of enhanced water in the region. The increasing interest of people in sports and other physical activities is expected to further propel market growth in the region.
Asia Pacific is the fastest-growing market for enhanced water and is expected to witness the fastest CAGR of 8.9% from 2020 to 2027. The increasing interest of youth in high-intensity workout and exercises has been driving the market in the region. Moreover, the popularity of enhanced water over sports and carbonated drinks will continue to boost sales. This is owing to the rising preference for cleaner, chemical-free, and stimulant-free drinks among consumers.
The market for enhanced water is projected to witness a crucial growth in the coming years owing to the rising adoption of health-conscious lifestyles among consumers. The market is in its growth phase and encompasses immense potential. It experiences high fixed costs pertaining to equipment and manufacturing facilities. Moreover, high investments are required for storage facilities, owing to the product’s perishability. The exit barrier is also high owing to the significant investments required for machinery and production facilities. These factors increase the rivalry among market players. However, several companies in the market offer distinguished, iconic brands with a unique taste which has helped the companies in growing above the rivalry and establish and a brand image.
In September 2021, Glucose Health, Inc. launched a new product GLUCODOWN enhanced water. It's the first non-dairy beverage in North America enriched with a type of soluble fiber that's been clinically shown to help keep blood sugar levels under control.
In August 2021, Evian introduced its new enhanced sparkling water, evian+, to combat market energy slumps. The new product contains magnesium and zinc to help contribute to normal cognitive function. It is available in four flavors: raspberry and ginseng, lime and ginger, grapefruit and basil, and cucumber and mint.
In March 2021, Nestlé S.A., a food and beverage company, announced the acquisition of Essential Water, a Washington-based water brand. Global mineral and premium water brands, as well as subsequent healthy condensation, including such functional water, are being added to the company's portfolio.
Some of the prominent players in the enhanced water industry include:
CORE Nutrition LLC
Karma Culture LLC
Liquid Death Mountain Water
Montane Sparkling Spring Water
Market size value in 2020
USD 6.43 billion
Revenue forecast in 2027
USD 11.3 billion
CAGR of 8.3% from 2020 to 2027
Base year for estimation
2016 - 2018
2020 - 2027
Revenue in USD million and CAGR from 2020 to 2027
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Product, distribution channel, region
Americas; Europe; Middle East & Africa; Asia Pacific
The U.S.; Canada; Germany; the U.K., France; Italy; Australia
Key companies profiled
ax water; BiPro USA; CORE Nutrition LLC; GREEN-GO LLC; H2rOse; JUST WATER; Karma Culture LLC; lalpina; Liquid Death Mountain Water; Montane Sparkling Spring Water
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global enhanced water market report on the basis of product, distribution channel, and region.
Product Outlook (Revenue, USD Million, 2016 - 2027)
Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)
Regional Outlook (Revenue, USD Million, 2016 - 2027)
Europe, Middle East & Africa
b. The global enhanced water market size was estimated at USD 5.97 billion in 2019 and is expected to reach USD 6.43 billion in 2020.
b. The global enhanced water market is expected to grow at a compound annual growth rate of 8.3% from 2020 to 2027 to reach USD 11.34 billion by 2027.
b. Americas dominated the enhanced water market with a share of 49.2% in 2019. This is attributable to high spending on hydration beverages among health-conscious consumers of the U.S. and Canada.
b. Some key players operating in the enhanced water market include ax water, BiPro USA, CORE Nutrition LLC, GREEN-GO LLC, H2rOse, JUST WATER, Karma Culture LLC, lalpina, Liquid Death Mountain Water, and Montane Sparkling Spring Water.
b. Key factors that are driving the market growth include growing awareness regarding the adverse effects of dehydration on health and new product launches in developed economies of North America and Europe.
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