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Rollout Focus July 2023: Flavored Waters

July 19, 2023
Rapid growth during the pandemic has slowed a bit, but the category is still on the rise; we take a look at PepsiCo's Bubly, Nestle's canned Perrier and Hapi Water.

The global flavored water market was valued at $13.5 billion in 2020 and is expected to grow about 10% every year until 2028, according to Grand View Research. The category experienced rapid growth during the pandemic when consumers became more aware of what they put inside their body. This fueled demand for value-added, flavored hydration products, especially among health-conscious consumers from mid-to high-income levels.

72% of global flavored water sales came from the sparkling product segment in 2020. This is expected to grow, according to Grand View Research. However, the still water segment is booming, too, as more innovators get creative with flavors and functional ingredients.

Through savvy marketing and value-added formulations, bottled water companies are now touting the wellness benefits of proper hydration. Adding flavor without any calories is a common tactic. Carbonation is another, with the two frequently offered together. Other approaches to add value to bottled, canned and pouched water include adding caffeine, vitamins, minerals, protein, fiber or other functional micronutrients.

“More than ever, people are looking for healthier beverages with functional benefits.”
- Tyler Hartmann, director of marketing and brand development for Bubbl’r, a flavored energy water line from Klarbrunn, an independent distributor and manufacturer of Pepsi products

RECENT PRODUCTS

Hapi Water was developed by a dentist who saw the damage sugar was doing to kids’ teeth. The drink was created as a healthy alternative to the fruity beverages many kids tend to drink. It also has become a go-to for adults who are drawn to the taste and healthy ingredients. With zero grams of sugar, a good source of vitamin C and zero calories in every shelf-stable pouch, Hapi Water comes in apple, grape, punch and strawberry kiwi flavors.

A growing brand in the canned water space is Bubly from PepsiCo. The brand is as much about being fun as it is about being a flavored sparkling water with no calories and free of artificial colors, flavors and sweeteners. Cans and bottles feature bright, bold packaging and
unique smiles for every flavor. The brand’s first limited-edition flavor—Bellini Bliss Bubly—speaks to the growing ready-to-drink mocktail trend and features the tropical flavors of peach, pineapple and mango.

The brand also now has a line extension: Bubly Bounce. The sparkling water provides hydration with a little (35mg) caffeine. It’s packaged in the signature bright colors of the Bubly brand but also sports new effervescent and energetic graphics. It comes in five combination flavors: blood orange grapefruit, blueberry pomegranate, citrus cherry, mango passion fruit and triple berry.

Not to be left out of the flavored sparkling water trend, Perrier Carbonated Mineral Water, a brand that started in 1863 in Vergèze, France, and
is now enjoyed in more than 140 countries, has entered this space with a canned line that depicts its iconic green bottle. Now owned by Nestlé Waters, the premium mineral water line comes in lemon, lime, L'orange, peach, pineapple, pink grapefruit and strawberry flavors.

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