Flavoured waters turn an essential into a treat, quenching thirst while offering flavour and functionality. Our Flavoured Water Market Trends Report 2024 highlights a range of opportunities for brands to expand their offerings to boost sales of these discretionary products.
Flavoured bottled water market overview
Volume sales of flavoured waters, both still and sparkling, have dipped due to their higher price points along with concerns from shoppers around the impact sparkling variants’ carbonation can have on dental health. The segment has also been met with competition from squash, which typically counters cost and health concerns, and carbonated soft drinks, a category that has innovated with flavours.
Nevertheless, flavoured waters generated £388m in sales (£260m for still, £128m for sparkling) from 378m litres (254m of still, 124m of sparkling) in 2023*. They are still enjoyed by many shoppers too – 51% of adults use flavoured still water and 41% use flavoured sparkling water*.
Now growing consumer confidence is expected to help flavoured water sales to grow again, particularly as shoppers trade up on products.
Flavoured water trends and opportunities
Innovative flavours
Innovation is essential for flavoured waters, given the successes enjoyed by competing categories like carbonated soft drinks and juices where new product development and launches have been much higher.
And given that two-in-five drinkers (42%) believe drinking a flavoured sparkling water is as enjoyable as a carbonated soft drink*, there is scope for brands to follow the lead of these categories to create new offerings.
Flavourful + functional
Flavoured waters are well positioned to capitalise on shifts from focussing on a drinks’ cost to prioritising a product’s health and wellness credentials. Most flavoured waters already fell within the requirements of the HFSS regulations, for example, offering an advantage over some competitor categories.
Now building on the health benefits of bottled waters will help the segment to grow. New launches of fortified or functional flavoured waters are already bucking the declining sales trend, creating an attractive proposition by promising to meet daily nutritional needs. The appeal of these offerings demonstrates another opportunity for flavoured bottled water brands.
Sustainable alternatives
As consumer priorities move away from price-points, sustainability is expected to be of growing importance. One-in-three shoppers (36%) would be willing to pay to use a flavoured or sparkling water refill station rising to 58% amongst young people and 71% amongst those who say they also feel judged for drinking from plastic bottles*. This offers an opportunity for drink brands to demonstrate their green credentials with refill options, particularly in retail settings, such as Aqua Libra’s flavoured taps in M&S stores across London.
Out-of-home options
Out-of-home locations like these are important touchpoints for flavoured water brands, given usage of flavoured waters, both still and sparkling, is highest here.
While on-premise refills are commonplace, flavoured waters options within them are rare – though Coca Cola’s has include Vitaminwater in the drinks available from its freestyle machines in some markets. Including flavoured waters in food service dispensers will also help to attract the drinkers who enjoy these as much as carbonated soft drinks.
Own-label flavoured waters
As consumers have cut back on spending, own-label flavoured waters have enjoyed extra sales. Own-label now accounts for 36% of market share, as value sales grew by 13.9% to £636m in 2023*. Own-label options in chilled aisles remain limited though – higher presence in these spots will help to encourage impulse buys.
New flavoured water launches
The flavoured bottled water market has attracted new entrants and diversification from existing players, alike.
US brand Liquid Death has quickly established itself with its distinctive branding, offering both plain and flavoured waters and highlighting its plastic-free packaging.
Also tapping into consumer concerns around single-use plastics, market leader Volvic has its Touch of Fruit Sparkling Waters available in cans while also adding new creations to its range, including a Kiwi & Lime flavoured water.
Sustainability concerns are also answered by Dash Water’s use of ‘wonky fruit’. It last year added Grapefruit to its flavoured sparkling water range, while, similarly, Rubicon launched a Pink Grapefruit & Blood Orange flavoured sparkling water.
Other new launches show how flavoured bottled water brands are meeting the growing demand for less sweet creations too.
Itsu has four flavours of zero sugar, zero calorie flavoured sparkling waters available across its stores, for example. Siren Craft Brew is blurring the lines with alcohol-free beers with its flavoured sparkling water infused with hops which boasts zero alcohol, calories, caffeine or sugar.
Conversely to the ‘zero’ approach to ‘better -for-you flavoured waters, others take the ‘extra’ route through the development of fortified or functional waters.
M&S and Vitamin Wells, a Swedish brand, have three- and five-strong ranges of flavoured, vitamin-rich waters, respectively, while Upbeat and Vieve have both expanded their ranges of protein-enriched waters with new flavour options. Press has gone for probiotics and Tranquilo for ashwagandha as their extra flavoured water ingredients.
The category has also enticed existing drink brands to expand into it, including Huel and Warrior creating fortified or functional flavoured bottled waters. Huel promises “154 health benefits” from its use of 26 vitamins and minerals, and Warrior highlights how its ingredients can encourage “fresh looking skin”.
Extra flavoured water ingredients
We are seeing growing numbers of requests for, or launches, of waters using magnesium, Lion’s Mane, kombucha and ashwagandha, in particular. And B vitamins, ascorbic acid (vitamin C) and ginseng are also popular as extra flavoured water ingredients.
TRIP’s Mindful blend promises “a new way of finding calm” from its use of Lion’s Mane, magnesium, ashwagandha and L-theanine, while Lemon Perfect adds vitamin C to its three varieties of flavoured waters.
Popular fruit flavours for flavoured waters
Fruit flavoured waters are the most popular and prevalent options available.
Familiar berries – like Raspberry, Strawberry, and Blackcurrant – lead the way here. These can be emulated or also differentiated by blending common flavours with ingredients aligned with newer drink trends, such as Raspberry & Rhubarb for a sweet tart flavour.
Traditional fruit flavours – like Lemon Lime mixes, Orange, Peach, and Apple – are also commonly used by flavoured water brands. Highland Spring uses these flavours in its sugar-free, flavoured still waters – available in Strawberry, Apple & Blackcurrant, and Lemon & Lime – for example. These can be built on with international variations or complementary flavours, like Blood Orange or Lime with Mint.
And fast-growing tropical flavours – like Mango, Pineapple, and Watermelon – are all These can be elevated with complementary flavours, such as tapping into the floral flavours trend with combination like Mango & Jasmine and or Watermelon & Hibiscus. Bubly has taken a similar approach with its six-strong range of sweetened sparkling waters, combining flavours such as Peach Mango and Cherry Lemonade, for example.
Lead or join the flavoured bottled water market
There are a range of opportunities available to flavoured bottled water brands. To join this market with new offerings or to enhance your existing range of fruit flavoured waters, chat to our team today.
At Simpson’s we’re experts in developing, formulating and manufacturing flavours for still and sparkling waters.
*Mintel, Bottled Water UK 2024
Image source: Trendhub The Food People 2024
