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Learn the key trends shaping the fortified water segment, plus innovations to watch, brand successes, and actionable insights for manufacturers.
This is an exciting time for fortified water, with innovation ramping up in ingredients, claims, and flavors. In the global functional beverage market, functional water (which includes fortified water) is the fastest-growing category, forecast to grow at a CAGR of 14.6% through 2028.1
| Beverage Category | Forecast CAGR (2023-2028) | Sales (USD Billion) |
|---|---|---|
| Functional water | 14.6% | $18.33 |
| Energy drinks | 9.6% | $99.20 |
| Sports drinks | 8.4% | $29.12 |
Almost one in three consumers globally have increased their bottled water consumption compared to a year ago.2 The primary reason? Because it’s “healthy.”3
Q: Why have you increased your consumption of bottled water?
Source: Innova Database, Innova Category Survey – Global, 2024
Low/no sugar, natural, and vitamin/mineral fortified lead in social media mentions for bottled water,4 while the top claims in recent launches are vitamin/mineral fortified, immune health, and antioxidant.5
Product innovations in the fortified water space include an expansion of plant-based waters, which are produced by extracting water from plants such as aloe, coconut, and, more recently, cactus. These waters are often naturally rich in minerals and electrolytes and feature a light flavor characteristic of the plant.
Vitamin and mineral fortification, which remains foundational to the category, has been getting some marketing attention as more brands link the nutrients to specific structure and function benefits, aiming to better educate consumers on their value.
Electrolytes, which consumers strongly associate with hydration, are becoming more utilized in fortified water as brands begin to compete head-to-head with electrolyte and sports drinks. Among flavored water, punch, white peach, yuzu, and red grape flavors are gaining momentum.6
Category disruptors include Liquid Death in the US, with the tagline “Murder Your Thirst.” This male-focused canned water, which resembles beer and uses shock and humor in both its graphics and flavor names (such as Rest in Peach and Convicted Melon), has gained a loyal Gen Z following.
In the UK, flavored vitamin waters for kids are gaining traction, with Dino Water by Perfectly Clear and Get More Vits leading the way. Vibrant fruit flavors and playful characters on the packaging appeal to kids, while the nutritional benefits offer parents a convenient alternative for kids reluctant to take traditional vitamins.
Hydration is the primary purchase driver for fortified water. However, consumer research reveals other benefits consumers want to see in hydration products. More than one in three Gen Z and Millennial consumers want hydration products to feature skin health or digestive health benefits.7
Fortified water that supports skin health could be formulated with vitamins, collagen, and antioxidants that promote a glowing complexion, while added probiotics or fiber could support digestive health. Fortified water can further expand its appeal by addressing these key wellness areas.
As the functional water category experiences rapid growth, driven by rising demand for healthy hydration products, manufacturers have an opportunity to differentiate their products through innovative ingredients, flavors, and claims.
Here's how beverage brands can innovate successfully and align with current trends:
By integrating these strategies, beverage manufacturers can capitalize on the fortified water market's growth potential and meet the evolving needs of health-conscious consumers.
To maintain relevance in the market, beverage manufacturers must adapt to emerging trends and evolving consumer preferences. Ingredients, claims, flavors, and marketing approaches all present significant opportunities for innovation.
Today’s beverage consumers seek more than hydration; they seek nutritional solutions that can elevate their health and wellness while providing a refreshing and enjoyable hydration experience. To learn more about this topic, watch our latest consumer trends discussion with FMCG Gurus: Hydration and Essential Health.
A functional beverage is a drink that provides a beneficial effect beyond basic nutrition. These health and wellness benefits can come from a wide range of bioactive ingredients—from adaptogenic herbs like ashwagandha to MCTs for the keto diet to tryptophan for sleep support.
Some examples of functional beverages are energy drinks formulated with caffeine and B vitamins, sports drinks with added electrolytes and antioxidants, yogurt drinks that have probiotics, and beauty-from-within beverages containing collagen. The functional beverage market continues to grow as more people look for benefits like energy, relaxation, immune support, cognitive support, muscle building, and more.
Nutrient premixes are pre-blended nutrient powders that can include a variety of nutrients such as vitamins, minerals, amino acids, healthy fats, fibers, and bioactives, depending on the need. They can even include gums and flavors. Nutrient premixes are designed to be easy for manufacturers to add to foods, beverages, and supplements, with good flowability and uniform particle size to prevent the different nutrients from separating out.
There are vitamin-mineral blends, electrolyte blends, energy blends, keto blends, and oftentimes custom blends for companies that have a unique idea in mind for their fortified or functional products. Formulating with a nutrient premix instead of several individual ingredients saves a company time and simplifies purchasing, warehousing, and production.
The essential micronutrients are the vitamins and minerals the body can’t make enough of, or at all, to support its essential functions. For humans, the essential water-soluble vitamins are vitamin B1 (thiamine), vitamin B2 (riboflavin), vitamin B3 (niacin), vitamin B5 (pantothenic acid), vitamin B6 (pyridoxine), vitamin B7 (biotin), vitamin B9 (folate), vitamin B12 (cobalamin), and vitamin C (ascorbic acid). The essential fat-soluble vitamins are vitamin A, vitamin D, vitamin E, and vitamin K.
The essential minerals are categorized as macrominerals or trace minerals, with the latter required by the body in only tiny amounts. The essential macrominerals are calcium, phosphorous, magnesium, sodium, chloride, potassium, and sulfur, while the essential trace minerals are iron, manganese, copper, zinc, iodine, and selenium.
