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Learn about global hydration trends impacting the beverage industry, key consumer preferences, and the vital role of innovation in driving product success.
Liquid I.V. is a hydration brand that is reshaping the industry. Driven by its commitment to science-backed formulations that accelerate hydration and its attention to flavor variety and functional benefits, the brand’s enormous sales growth rests on its innovation and relevance to today’s consumers.
A significant factor influencing global hydration trends is consumer motivation for using hydration products. It’s become clear that consumers have two distinct approaches to hydration: reactive (drinking in response to thirst) and proactive (mindfully hydrating to maintain hydration levels).1
Reactive hydration is strongly associated with physical activity, while the need for proactive hydration is carving out a new space and new opportunities. Proactive hydration consumers, who skew toward Gen Z and health-conscious consumers, can be targeted with innovative formulations that provide functional wellness benefits beyond hydration. For both proactive and reactive hydration, there is an increasing demand for clean-label products.
Advancements in formulations for hydration products include a strong focus on electrolytes, which are crucial for hydration at the cellular level. Electrolytes are being added to fortified waters and energy drinks, while some hydration powders feature scientifically optimized electrolyte levels.
Another key trend is the rise of adaptogenic hydration products. These drinks contain adaptogens—functional botanicals associated with reducing stress in the body, fighting fatigue, and helping to restore balance—such as ginseng, astragalus, ashwagandha, holy basil, and maca. Low-sugar and sugar-free hydration options are also growing.
There is strong momentum in a number of hydration beverages. Consumers report high levels of increased usage over the prior year of protein water, functional iced teas and coffees, functional carbonates, functional waters, and electrolyte drinks.2
Hydration plus functional benefits is the future of hydration, with a high global interest in energy, skin, and digestive health benefits in hydration products.3 Effective ingredients and clear messaging will be essential to realizing the potential of hydration plus.
Q: What other benefits would you like to see on hydration products?
Helps:
Source: FMCG Gurus, Hydration Matters: Understanding Consumer Attitudes and Practices – Global, May 2024
Flavor innovation is another growth driver for the market. Flavor is often the primary motivation when consumers choose a hydration product over plain water. However, current flavors in the market tend to be simple and similar among brands. Unique, unexpected, or trending flavors and flavor combinations can attract consumer interest and differentiate products.
Balancing format, flavor, and functionality is the trio for product success. The format of a hydration product—whether it’s a ready-to-drink beverage, gel, or powder—influences the consumer's cost and ease of use. Understanding the target consumer is key to making the best choice.
Another challenge is addressing flavor preferences while maintaining health benefits. Consumer expectations in hydration products indicate brands should not compromise on flavor. By masking unwanted tastes, flavor masking and microencapsulated nutrients can support the inclusion of vitamins, minerals, caffeine, and botanicals into a custom premix, even at high levels.
Keeping pace with global hydration trends is crucial for manufacturers aiming to address the increasing demand for enjoyable hydration solutions. By embracing innovation in ingredients, flavors, and health-focused benefits, brands can captivate consumers and highlight the exciting potential of hydration products in today’s competitive landscape.
Tune into our functional hydration webinar for insights on staying competitive in the hydration market.
1-2. Glanbia Nutritionals, Global Consumer Usage & Attitude Study, 2023.
3. FMCG Gurus, Hydration Matters: Understanding Consumer Attitudes and Practices – Global, May 2024.
