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Discover the emerging hydration trends in Asia, consumers’ preferences, and opportunities for innovation in functional beverages to meet these demands.
Otter Dun exemplifies the power of innovation in beverages. Its unique freeze-dried cherry peach tea—a convenient, portable product that dissolves in cold water to produce a naturally sweetened beverage—saw sales growth of 29% in its first year.1
Keeping up with hydration trends in Asia allows brands to address consumer preferences in flavor, wellness benefits, and convenience to provide a healthy hydration experience for consumers on their own terms.
Among consumers in Asia Pacific, 54% recognize the link between good hydration and good overall health, and 47% plan to boost their hydration levels over the next year.2 This increasing focus on hydration, combined with a strong interest in products with health benefits, is fueling demand for a variety of functional beverages.
Plant-based hydration, such as coconut water, is a fast-growing area. Delivering a light, refreshing taste and natural phyto-electrolytes for rapid hydration, Kurious 100% Coconut Water grew 86% in its launch year.3
Hydrating and energy are the two most desired functional benefits in a functional product, appealing to 31% and 34% of Chinese consumers, respectively.4 Gut health and immunity-boosting benefits appeal to about one in four.5
Great taste is also essential in today’s functional beverage market, with 35% of consumers in Asia Pacific prioritizing how a beverage tastes over how hydrating it is.6 Nearly one in five Chinese consumers think it’s worth paying more for products that deliver a new taste experience.7
Consumers’ increasing health-consciousness is reshaping their purchasing choices, with many willing to pay a premium for beverages that align with their wellness goals. In China, 30% of consumers think functional ingredients that boost physical health are worth paying more for, while 18% feel this way about functional ingredients that improve mental health.8 Natural ingredients are important to 28%.9
Hydration is linked to wellness benefits, with notable demographic differences. Gen Z and Millennial consumers are the most likely to associate having good hydration levels with performing their best, mental wellbeing, and energy levels.10 Among functional benefits, Chinese Gen Zers prioritize hydration (39%), while energy is the most important for Millennials (42%).11
Chinese consumers’ increasing focus on hydration and fitness has led to 115% growth in sports nutrition and soft drink launches with a hydration claim in one year.12 Energy claims are also growing, with 63% of sports drink launches featuring an energy or alertness claim.13 In addition, Chinese consumers prioritize high nutritional value ingredients more than those in other regions.14
In Japan’s health-conscious society, consumers over-index globally for the purchase of functional beverages by 10%.15 Vitamins, minerals, and functional ingredients influence energy drink purchases the most, although vitamin-mineral fortification in water and juice matter to about one in seven.16 Interest in fortified iced tea or coffee is minimal.17
Beverage manufacturers can successfully address consumer preferences by tailoring products to meet local tastes and incorporating trending health and wellness ingredients, such as plant-based ingredients and electrolytes for hydration, vitamins and minerals, and energy ingredients.
Marketing strategies to boost brand recognition include catering to consumers’ willingness to pay more for nutritional and functional benefits, using natural positioning, and differentiating through innovative, delicious flavors.
The growing demand for functional beverages highlights a health-conscious shift among consumers, with strong interest in hydration and energy benefits across various drink categories. Understanding demographic preferences can drive successful product development.
Contact Glanbia Nutritionals to learn more about our functional beverage solutions for Asian consumers.
