Water enhancers, with their highly anticipated benefits, ensure great scope for applications in health care sector, creating a prospect for a prolific venture. Hence, production of beverages advanced, in terms of technologically in the last decade. Water enhancers are now available in the form of flavored, energy, and fitness drops in the market, each claiming unique benefits. Among these, flavor enhanced water accounted for maximum retail sales in 2015, and energy drops are witnessing high demand among athletes and fitness-oriented consumers. These products constitute around 80% of the entire product range. Recently, new products with weight management and skin rejuvenating formulae have also been introduced into the market.
The Europe water enhancer market is expected to register a CAGR of 14.4%, during the forecast period, 2018-2023.
Increasing Shelf Space in Retail Markets for Water Enhancers
The launch of Mio brand by Kraft shaped the market for players, pushing them to diversify their beverages segment. A major challenge a product faces in the introductory stages is getting the desired merchandizing space. Players in Europe water enhancer market initially focused entry through grocery stores and convenience store retailers and paired up with familiar products to push sales. Mio brand of Kraft foods focused on product differentiation and was positioned in the front counter by retailers to drive impulse buying patterns.
Flavored Drops Enjoy Consumer Preference
Most of the flavored drops in Europe are made from natural ingredients while traces of vitamins, like potassium may be found, which help with hydration. Consumers prefer adding few drops of flavored enhancers that instantly transform plain water into a kind of soft drink, thus making it more consumable. Increasing concerns about health, and a push to consume enough water to stay fit is one of the factors driving flavor drops market. Also, natural ingredient based products are more preferred. Arizona, Sweetleaf, Tate & Lyle are some of the producers of flavored drops.
UK dominates the European Water Enhancer Market
North America, which had low market for cordial and squash markets, was ideal for the launch of water enhancer products. However, the European water enhancer market is matured for squash/cordial products and is facing unclear positioning of water enhancers. Unless consumers are made aware of the positioning and differentiation of the pocket size products, players entering the European market will face challenge in catering to the population.
Kraft Foods and Mio are the global leaders in this segment. Dasani drops by Coca-Cola, new flavor splash & Gatorade by PepsiCo, Nestea water enhancer by Nestlé, and other player brands, like Skinny Girl, Orange crush, Icee Zero are some of the dominant brands, which have received consumer acceptance. These products are being positioned in the front shelves in retail markets and next to bottled water category to drive the sales.
- February 2014 - The Skinny girl brand launched a new low calorie water enhancer. It is available in Fuji apple, pineapple coconut, blueberry acai, and white cherry flavors. It has created new market for flavored water enhancer with low sugar content.
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- Analyzing outlook of the market with the recent trends and Porters five forces analysis
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- Market segmentation analysis, including qualitative & quantitative research incorporating the impact of economic & non-economic aspects
- Regional and Country level analysis integrating the demand and supply forces that are influencing the growth of the market
- Competitive landscape involving the market share of major players, along with the key strategies adopted for development in the past five years
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1.1 Key Deliverables of the study
1.2 Study Assumptions
1.3 Market Definitions
2. Research Approach and Methodology
2.2 Research Design
2.3 Study Timelines
2.4 Study Phases
2.4.1 Secondary Research
2.4.2 Discussion Guide
2.4.3 Market Engineering & Econometric Modeling
2.4.4 Expert Validation
3. Market Overview
3.1 Market Trends
4. Market Dynamics
4.1.1 Rise in Obese Populations and Subsequent Rejection of Carbonated Drinks In Western Countries
4.1.2 Industrialization and Mass Production of Beverages
4.1.3 Changing Consumer Preferences towards Flavored Drinks
4.2.1 Lack of Regulations from FDA
4.2.2 Compliance with the Manufacturing Practices
4.3.1 Technological Advancements in Beverage Production
4.3.2 Identification of New Active Ingredients
4.4 Porters Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. Market Segmentation
5.1 By Product Type
5.1.1 Flavored drops
5.1.2 Energy drops
5.1.3 Fitness and workout Drops
184.108.40.206 Weight Management drinks
220.127.116.11 Skin-rejuvenating drinks
5.2 By Active Ingredient Type
5.3 By Source Type
5.3.3 Tea and Coffee
5.3.4 Coconut water
5.4 By Geography
5.4.7 Rest of Europe
6. Competitive Landscape
6.1 Market Share Analysis
6.2 Most Active Companies
6.3 Strategy Adopted by Key players
7. Company Profiles
7.1 Arizona Beverages USA
7.2 Cott Beverages
7.3 GNC Live Well
7.4 The Better Bottle Company
7.5 Heartland LLC
7.6 ICEE Co.
7.7 Kraft foods Inc.
7.11 The Coca-Cola Company
7.12 Wisdom Natural Brands