zenithinternational 2016 Functional Water Innovation A review of recent key trends and new product development
January 2016
Research Note In undertaking its research for this report, Zenith has utilised its internal data library and global databases, alongside other third party sources and interviews with the industry. Throughout its on-going research, Zenith also depends upon the goodwill and co-operation of operators active in the marketplace, and, as such, seeks to achieve a high level of accuracy. Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith International Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information. Important notice on distribution This report should not be quoted, referred to or transmitted to another party, in whole or in part, without the prior written consent of Zenith International Ltd. Should you desire to release a copy of this report to another party for information purposes, we request you and the requesting party to indemnify Zenith International from any liability related to the report distribution. Such readers however will not be considered “users� of this report.
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Contents
The contacts at Zenith International in connection with this report are: Monika Fedor Consultant Zenith International Ltd., UK Tel: +44 1225 327936 mfedor@zenithinternational.com Esther Renfrew Market Intelligence Director Zenith International Ltd., UK
Section
Page
1. Introduction and scope
4
2. Category overview
7
Overview of common features Commentary - global trends and developments Commentary - new product development trends Challenges and barriers Insights and opportunities
3. Brand profiles
17
Tel: +44 1225 327900 erenfrew@zenithinternational.com
3.1 Brand profiles: Innovation in functional claims
18
3.2 Brand profiles: Innovation in functional ingredients
32
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3.2 Brand profiles: Innovation in still functional water
43
3.3 Brand profiles: Innovation in sparkling functional water
60
3.4 Brand profiles: Innovation in children’s functional water
69
3.6 Brand profiles: Innovation in packaging
75
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zenithinternational 1. Introduction and scope
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Introduction and scope Functional water innovation
Overview The aim of this report is to assess developments in the functional water sector, identifying and summarising trends and new innovations in order to understand what opportunities exist for new product development.
Scope A global market overview of trends and developments - tracking recent innovation within the category and investigating the future outlook for the market. Categories covered in this report:
Functional claims Functional ingredients Still functional water Sparkling functional water Children’s functional water Innovation in packaging
Products profiled in this report contain features that span a number of trends shaping the future of the functional water sector, including:
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Page 5
Natural ingredients Natural sweeteners Diversified flavour offerings Energy waters Beauty and wellness waters Vitamin waters Protein waters Innovative functional ingredients and claims Minimalist packaging
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Introduction and scope Functional water innovation
Definition: Functional water For the purpose of this report, Zenith has limited its research scope using the following definition: Functional waters include flavoured water with added functional ingredients, such as botanicals, vitamins, minerals, oxygen or other, as well as flavoured waters marketed with functional positioning Exclusions
Waters with added functional ingredients but without added flavour Coconut water based beverages Coverage Innovation and new product development shaping the global market for functional water launched from 2013 to 2016
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zenithinternational 2. Category overview
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Category overview Overview of common features Functional waters have been formulated using a variety of ingredients with specific functional claims. Common features are summarised in the table below:
FEATURE
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BENEFIT
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Category overview Commentary - global trends and developments
Global and regional trends in the market for functional water
 Commentary.
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Category overview Commentary - global trends and developments (continued)
Functional water growth by region, 2015 estimate
 Diameter of bubbles represents the size of market in region (min litres) 30.0%
25.0%
Volume CAGR % 2013-2015e
20.0%
Region 1
15.0%
10.0%
5.0%
0.0% 0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Region 2 -5.0%
-10.0%
Per Capita Consumption 2015e
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Category overview Commentary - global trends and developments (continued)
Global trends and developments in functional water consumption  Commentary
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Category overview Commentary - new product development trends
Innovation in functional water claims Commentary
Innovation in functional water ingredients Commentary
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Category overview Commentary - new product development trends (continued)
Innovation in still and sparkling functional water  Commentary
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Category overview Commentary - new product development trends (continued) Innovation in children’s functional water
Commentary
Innovation in packaging Commentary
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Category overview Functional water category challenges and barriers
CHALLENGES AND BARRIERS
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Category overview Functional water category insights and opportunities
INSIGHTS AND OPPORTUNITIES
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zenithinternational 3. Brand profiles
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zenithinternational 3. Brand profiles
3.1 Innovation in functional claims
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Innovation in functional claims Energy
Hint Kick Hint, USA https://www.drinkhint.com
Product information: Flavoured water brand Hint have entered into the enhanced water market with the launch of line extension Hint Kick. Hint Kick is a fruit infused water enhanced with 60mg of natural caffeine from coffee beans (per bottle). The water is all natural, and contains no sweeteners, calories or preservatives. Available in 3 flavour variants the water has been created to meet the needs of consumers seeking an alternative energy beverage to energy drinks and coffee. Launch date: August 2015
Variants: Apple Pear Hint Kick, Lemon Cayenne Hint Kick, Black Raspberry Hint Kick Ingredients: Water, flavoured with fruit oils and essences Positioning & Channels: Online and in select stores (with additional retailers expected through 2015) Pack size & type: PET bottle: 16fl.oz Price: US$1.69 for 16fl.oz bottle
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zenithinternational 3. Brand profiles
3.2 Innovation in functional ingredients
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zenithinternational 3. Brand profiles
3.3 Innovation in still flavoured functional water
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zenithinternational 3. Brand profiles
3.4 Innovation in sparkling flavoured functional water
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zenithinternational 3. Brand profiles
3.5 Innovation in children’s flavoured functional water
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zenithinternational 3. Brand profiles
3.6 Innovation in packaging
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