Beer & Wine

FUNCTIONALITY DRAWS CONSUMERS TO BOTTLED WATER, SPORTS DRINKS

With health becoming a

priority for many consumers, added wellness benefi ts in bottled water and sports drinks will see a growing popularity in 2022.

BottleD Water and Sports Drinks See Sales Rise

Total water bottle sales increased by 11.2% in the 52 weeks ending Jan. 1, 2022, whereas they decreased by 5.4% the previous year. Sports drink sales increased by 21.2% to reach $3.61 billion in the 52 weeks ending Jan. 1, 2022.

Latest 52 Wks - W/E Jan. 1, 2022 Latest 52 Wks YA - W/E Jan. 2, 2021

According to research fi rm Mintel, non-fl avored still bottled water sales increased by 8.2% in 2021. “Basic private-label brands represent the bottled water’s foundation and remain a growing segment of (the) bottled water market, but premium lifestyle brands (e.g., Fiji, Evian) and alkaline waters (e.g., Essentia) are the fastest-growing brands within the unfl avored still water segment,” said Caleb Bryant, associate director, food and drink analyst at Mintel.

For c-stores specifi cally, Nielsen reported total sales of unfl avored single-serve water increased by 12.1% to reach $1.81 billion for the 52 weeks ending Jan.1, 2022. Flavored water saw an even larger growth at an estimated 17.9% increase in 2021, per Nielsen. “The growth of fl avored still waters such as Hint demonstrates the market potential for still waters that deliver a superior fl avor experience,” added Bryant.

FUNCTIONALITY AND COMBO FLAVORS THRIVE

Enhanced function seems to be a key preference for consumers when choosing a fl avored water beverage.

Products that “blur the lines between water, juice drinks and sports drinks” indicate interest in water that serves a purpose beyond hydration, Bryant noted, citing Propel, Vitamin Water, Smartwater and Lemon Perfect as examples.

Samantha Overmohle, category manager at Des Moines, Iowa-based Kum & Go, which operates 400-plus stores in 11 states, also noticed a growing trend toward functional drinks. “Brands like Voss and Smartwater continue to innovate within their lines by offering added benefi ts like collagen or ‘immune support,’” said Overmohle.

In a response to the rise of reusable water bottles in younger generations, Bryant predicted there will be increased opportunities for powdered and liquid water enhancers in 2022. Currently, 32% of consumers of water enhancers use them for benefi ts such as added electrolytes and energy boosts.

Sports drinks are also thriving in the market, with a 21.2% increase, according to Nielsen. Many of them offer additional caffeine and vitamins. “Taste and fl avor will continue to be top priorities for consumers within this category,” added Overmohle in reference to sports drinks.

Combination fl avors specifi cally are predicted to expand in 2022.

Mintel Global New Products Database sees herbal, spice and fl oral fl avors paired with common fl avors as a leading trend in packaged water product launches. Bryant listed examples of this from the database, such as Rethink Water’s Watermelon Mint Flavored Water.

Product

Beverages Sports drinks No calorie

Regular calorie Reduced calorie

Dollar sales 1-Year % Change Dollar Sales 1-Year % Change

$32.1 B 10.5% $29.0 B 3.7% $3.61 B 21.2% $2.98 B 9.8% $398 M 17.9% $337 M 21.8% $3.01 B 18.8% $2.53 B 7.2% $205 M 87.0% $109 M 47.8%

Water

$2.16 B 11.2% $1.94 B -5.4% Total unfl avored single serve water $1.81 B 12.1% $1.61 B -6.6% Artesian water single serve $185 M 7.5% $172 M 0.9% Distilled water single serve $1.25 M 23.2% $1.01 M -47.9% Drinking water single serve $982 M 11.5% $881 M -5.7% Spring water single serve $641 M 14.4% $560 M -9.7%

Source: NielsenIQ, Total U.S. Convenience data for the 52 weeks ending Jan. 1, 2022, and Jan. 2, 2021