Functional Waters: A Post-Pandemic Resurgence with New Trends

Functional waters, beverages enhanced with vitamins, minerals, botanicals, or other bioactive ingredients, are making a significant comeback in global markets as consumers prioritize health and wellness in the post-pandemic era. The category, which saw a decline during the COVID-19 pandemic due to reduced away-from-home consumption, is now witnessing a steady rebound fueled by innovation, shifting consumer behavior, and a growing focus on sustainability.

A Market Ready for Growth

Functional waters struggled during 2020, particularly in markets like the UK, where sales volumes dropped by 18%, according to Zenith Global’s UK Water Plus Report. This decline was largely attributed to pandemic restrictions that limited access to gyms, sports centers, and on-the-go consumption. However, the market is forecasted to grow by 26.7% between 2021 and 2025, driven by the increasing demand for health-focused beverages.

Globally, functional water sales are expected to grow at a compound annual growth rate (CAGR) of around 7% through 2030, as per recent industry analyses. The growth is supported by consumer interest in hydration solutions that offer added health benefits, such as immune support, mental clarity, and fatigue relief.

Innovation Drives the Comeback

With the pandemic behind, brands are leveraging their R&D investments from quieter periods to launch innovative products. Emerging trends include:

• Enhanced Functionality: Products addressing immunity, energy, mental focus, and gut health are gaining traction.
• Sustainability: Many brands are pivoting to environmentally friendly packaging, including recyclable aluminum cans and biodegradable materials, to appeal to eco-conscious consumers. For example, Danone’s Evian+ range features magnesium- and zinc-enriched water in sustainable cans.
• Clean Label: Sugar-free and naturally sweetened options remain a priority, aligning with consumer preferences for healthier, lower-calorie beverages.

Start-ups are also entering the market, offering unique flavors and novel functional ingredients that resonate with health-conscious buyers.

Top Players and New Entrants

Leading brands in functional waters include:

• Glacéau vitaminwater (Coca-Cola Europacific Partners): Dominates the UK market with around 30% share.
• Get More Vits: Offers a range of vitamin-enriched options, including a grapefruit-flavored Vitamin B12 water targeting fatigue.
• Upbeat Protein Water: Combines hydration with vegetarian whey protein, catering to gym-goers and athletes.

Other notable players include Nestlé’s Resource Water, PepsiCo’s LIFEWTR, and Hint Water in the U.S. These brands are tapping into the evolving needs of consumers seeking holistic wellness solutions.

Post-Pandemic Consumer Trends

The market landscape for functional waters has shifted, with several trends emerging:

• Home-Centric Consumption: Brands are focusing on direct-to-consumer models and home delivery options as more consumers prefer at-home hydration solutions.
• Sustainability Focus: As consumer awareness of environmental issues grows, functional water brands are reevaluating packaging and production practices.
• Hybrid Products: Crossovers between functional waters and other categories, such as adaptogenic beverages or plant-based protein drinks, are gaining popularity.

The Sweet Spot: Balancing Health and Taste

Sugar content remains a critical factor in the functional water segment. The UK’s sugar tax and increasing global concerns over calorie intake have pushed manufacturers toward sugar-free or naturally sweetened formulations. Balancing health claims with palatability is key to capturing consumer loyalty.

Looking Ahead

Functional waters are poised to become a staple in the global beverage market, with opportunities spanning sports nutrition, lifestyle beverages, and personalized health solutions. By addressing sustainability, innovation, and consumer health concerns, brands can secure their place in this dynamic and fast-growing category.

With functional waters leading the charge in health-conscious hydration, the future is clear—both literally and figuratively.