Industry Insights
The global electrolyte hydration drinks market was valued at USD 1.42 billion in 2017 and will reach USD 1.82 billion by 2025. The market is estimated to grow at a CAGR of 3.2% from 2017 to 2025. These drinks are gaining popularity amongst the millennials and generation Z who are actively engaged in vigorous physical activity. The market growth is attributed to increased awareness about health and fitness, acceptance for healthy drinking alternatives and willingness to pay for these products.
In addition, there is increasing inclination towards these beverages and drinks that are free of unhealthy ingredients, and capable of rendering some sort of functional or health benefit.
The electrolyte hydration drinks manufacturers are targeting athletes, trekkers, hikers and the people who are actively engaged in physical activities. These products prevent dehydration and helps in replenishing several electrolytes such as sodium, potassium, calcium, magnesium and phosphate, which are crucial for muscle and nerve stimulation.
The heavy physical workouts results in loss of fluids through excessive sweating and results in need of restoring the same and the loss of minerals vary from one person to another. Manufacturers are introducing several flavors and variants in order to enhance the palatability.
For instance, Nuun, introduced the products in different forms such as tablets and powdered forms rendering ease and convenience of consumption. In addition, the company is offering different flavors as well. The company is growing rapidly and giving a tough competition to Gatorade. These introductions render a strong demand for the products worldwide in the near future.
Also, it has been observed that the consumer interest is shifting towards natural and organic products which includes exotic types with functional properties in these products. Hence, the manufacturers are coming up with products without preservatives and citric acid- For instance, NOOMA organic electrolyte drinks brand has gained a competitive advantage due to its organic and natural flavors. The prominent flavor that has gained popularity amongst these is coconut water. This flavor is gaining popularity in sports beverages as well.
The market players with their innovative strategies are ensuring the boost in the sales. For instance, to increase the penetration, companies are targeting their products to other consumer groups apart from sportsmen and athletes. For instance, Nuun is ensuring the increased involvement of their employees’ in the promotional events to create awareness about the product in local market. They are positioning these products as a replacement for ordinary water. These products enhance the energy level during the workouts, long and extensive working hours and certain physical activities such as marathons.
Segmentation by Type
• Drinks
• Powder
• Tablets and Capsules
• Concentrates
The electrolyte RTD form accounted for the largest and fastest growing segment. This segment was valued at around USD 122 million in 2017 and is anticipated to record a growth rate of more than 3.5% during the forecast period from 2017 to 2025 Followed by RTDs, powder accounted for the second largest segment and is expected to grow at a CAGR of 3.1% in the coming years.
With increasing fitness concerns, the consumer is switching from carbonated beverages to healthier alternatives such as electrolyte and sports beverages. Increasing preference for drinks over other segments is attributed to the convenience and ease of consumption during travelling, workouts etc.
However, the capsules and tablets segment is also anticipated to gain traction over the forecast period, reason being the increasing preference for these forms by the trekkers, and hikers. The usage in this form enables their activity to be hassle-free and with lesser loads. Rising popularity of the treks and hiking will favor the market growth.
Segmentation by Distribution Channel
• Super market and Hyper market
• Convenience Store
• Online
• Others
The online segment accounted for the major market segment which held more than 25% of the total market followed by specialty stores. Millennials and Generation Z are the two primary consumers of the products and these people extensively use the online shopping modes in comparison to the conventional forms.
Specialty stores accounted for the second largest in the market due to the increasing preference for shopping specific products at the specialist outlets. These outlets provide the sports related products such as beverages, accessories and others. These kind of specialty stores are increasing in number worldwide as a part of the post-workout regime and the respective products are consumed so as to replenish the loss of fluids and salts.
Segmentation by Region
• North America
• U.S.
• Canada
• Europe
• Germany
• UK
• Asia Pacific
• India
• Japan
• Central & South America
• Middle East & Africa
North America and Europe are the largest markets together accounting for more than 50% of the total market. The high penetration is attributed to increased awareness and willingness to pay for healthier alternatives over the sugary beverages. In addition, rising consumer base getting involved in physical activity through enhanced participation in trek and other similar activities. This will in turn the electrolyte drinks market growth.
Furthermore, Europe region is anticipated to record significant growth over the forecast period, reason being the increased acceptance of a range of innovative products with no preservatives and no or low sugar content. Furthermore, supportive regulations from the respective governments will further fuel the market. For instance, the UK government has introduced extra taxes on sugary beverages, due to which manufacturers are shifting and are repositioning and reformulating their portfolio to cater the market with no sugar or low sugar content beverages
Asia Pacific is anticipated to record fastest growth rate over the forecast period. The growth is credited to increasing health and wellness awareness and the presence of a huge customer base across the region. Countries, such as the India and China, are contributing significantly to market growth as a result of the increasing number of working professionals.
Competitive landscape
The global electrolyte hydration drinks market is consolidated in nature on account of the presence of few established players contributing a major share. Key players in the industry include NOOMA, Nuun, KILL CLIFF, INC, Otsuka Pharmaceutical Co., Monster Energy Company, SiS, Fraser and Neave, Limited.
The companies are focusing on strengthening their presence by adopting several strategies such as consistent product innovations, increasing investments in emerging economies and partnering with online retailers to promote the sales and gain a competitive edge. For instance, major players are concentrating and expanding their base in economies such as China, and India.. These products are also endorsed by sports councils, for instance, 100PLUS is an isotonic sports drinks which is endorsed by the National Sports Council of Malaysia.
