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Key Takeaways
- U.S. stores sold some $4.5 trillion in drinks and beverage packaged as a way to help with hydration over the past year, according to NielsenIQ, a market research firm.
- Brands are introducing a bevy of powders, tablets and elixirs that promise to help with everything from stress management to gut health.
There are more ways to quench your thirst than ever—but that’s not all they do.
There’s DryWater, a powder with 34 vitamins, minerals and other ingredients. Melt Water beverages are made by simulating the formation and thawing of glaciers. Dozens of electrolyte, prebiotic and probiotic products have hit the market—from Ka-Ex, a powder said to reduce cortisol levels and stress, to Jolly Rancher and Sonic-branded beverage enhancers meant to coax children into chugging too.
Brands are tapping into consumers’ desire for health and wellness and a culture focused on optimization, marketing experts said. In the past year, U.S. brick-and-mortar stores sold some $4.3 trillion in beverages and $236 million in beverage enhancers marketed as helping with hydration, according to NielsenIQ, a market research firm.
The hydration segment is no longer just about empowering athletes, said Stacy Schwartz, director of the master of science in digital marketing program at Rutgers Business School. It’s now also about restoring people’s balance, building immunity, or aiding relaxation.
“Whatever aspect of your body that you want to finetune,” she said, “there’s a water for that.”
What This News Means for Investors
Hydration is a multibillion-dollar business, and companies continue to find new ways to sell to thirsty consumers. Lately, the popularity of Liquid I.V. and other hydration products shows how big of a priority health and wellness has become, with many products now touting specific benefits .
Liquid I.V., pastel electrolyte crystals that come in flavors like blue cotton candy and rainbow sherbet, have become a household staple for a number of consumers. The product was the fifth most popular purchase during Amazon’s (AMZN) Prime sale event earlier this month, according to market research firm Numerator. Liquid I.V. may soon become a $1 billion product, Fernando Fernandez, CEO of the brand’s parent company, Unilever, said on a conference call this month.
Companies have in the past decade moved away from the marketing messages traditionally associated with bottled water, which promised that it could replace what you’ve lost, said Jonathan Zhang, a marketing professor at Colorado State University. Now, he said, they tout the products as tools to embrace one’s potential as more Americans prioritize health and wellness.
“Several forces converged: the rise of wearable tech that made health measurable; social media aesthetics that equated self-care with aspirational lifestyles; and pandemic-era introspection, which made consumers more attuned to preventive and functional health,” Zhang said via email.
In an era where many track their sleep, physical activity and diet, drinks that promise to address personal health needs have appeal, said Schwartz. The beverage may feel like an affordable splurge compared to a reiki session or massage, she said. (Some restaurants have begun catering to this thirst for luxury, tapping water sommeliers to create menus with options like Berg, a $95 bottle sourced from Newfoundland, Canada, The Wall Street Journal recently reported.)
By hydrating, people may have felt more control over their health and fate during the pandemic—and be hanging onto the idea in the face of economic uncertainty, political division and other society-wide stressors, said Emily Contois, professor of media studies at University of Tulsa.
Stanley and Owala have sold scores of water bottles; several hydration apps have made a name for themselves; and social media is full of recipes for DIY electrolyte recovery drinks. But the market may not be saturated yet. About a quarter of consumers intend to drink more bottled or canned water in the coming year, according to surveys from Numerator.
“We’re living in a moment where there’s so much distrust, uncertainty, precarity,” Contois said. “People turn inward to seek that sense of control, that sense of certainty, in the small, the mundane, the things about our everyday lives.”
