Flavoured drinking water — A comprehensive overview of the competitive landscape; Market demand, trends, and forecast.

The new India is embracing several unique products and services which are shaping future trends. These adoptions are not merely limited to premium goods or the latest technologies. A simple segment that is being crafted in the Indian market is that of flavoured drinking water. 

A basic human need — water, thanks to growing awareness of health and immunity, is now developing into a niche market of its own. As the new India champions health at a macro level, this flavoured drinking water market is bound to boom. 

At this juncture, investing in a business of flavoured drinking water is a potential avenue for rapid economic growth. Since it is a fairly new market, venturing into it now provides a vital first-mover advantage.

Current market

The flavoured drinking water market currently is focusing on making water more functional. Also, reducing the input of sugar is being considered a high priority. Likewise, fruit essences and artificial sweeteners are the preferred companions for water.

In numbers, the global flavoured water market was valued at 17.2 billion US dollars in 2020. Similarly, the growth of this market in India is meteoric. Widened urbanization, coupled with the increased disposable income, has driven the market to newer heights.

Benefits of flavoured drinking water

The consumption of flavoured drinking water is ridden with myths. Whilst there are sustainability issues for consumers, the benefits outmatch the issues.

The benefits are:

• Vitamin-rich drinks

Flavoured drinking waters are rich in vitamins. Since they are cherry-picked for the drink, they can be considered to be a reliable source of vitamin intake.

The vitamins further the efficacy of the immune system. A hydrated body filled with vitamins is tailor-made for sports and fitness.

• Assists digestion

Any water-based food is great for digestion. However, with flavoured drinks, the appetite increases and allows for more consumption. 

This directly means it is better for digestion in the longer run. Also, it allows for the influx of energy and stimulates metabolism.

• Ensures weight balancing 

Similar to digestion benefits, most water-based foods are great for weight loss. Yet, given the blandness of water, people are ignorant at large of water’s incredible ability to assist weight loss.

But, with flavoured drinking water, the taste buds are active. Hence, ensuring the taste does not curtail the efforts to consume water. This increased water intake shall contribute to weight gain. 

And this is how flavoured drinking water maintains weight balance.

• Controls sugar intake

As mentioned above, reducing sugar intake during the processing of flavoured drinking water is a priority. With less sugar, the natural tastes of the fruits can be encapsulated in these flavoured water containers. 

This saves customers from potential diabetes and other disorders/diseases.

• Indirect benefits of the added ingredients

Various ingredients are infused into drinking water to make flavoured water. These ingredients have their benefits for the consumer’s health. 

A slice of lime shall control high blood pressure, boost the immune system, and also provide Vitamin C. Likewise, ginger can be used to make flavoured water. This reduces inflammation while also easing digestive discomfort.

Drivers of future growth

The future of flavoured drinking water is a luring prospect. To add detail, let us understand the drivers of market demand. Without demand, future growth is implausible. 

1. Healthier lifestyles

Indians are moving towards a healthier lifestyle in a wholesome manner. Hence, opting for a healthier drink is always an easy option.

2. Rise in obesity and gastrointestinal diseases

Flavoured drinking water is a quick fix for those looking to shed weight. Also, with the infusion of the right ingredients, obesity and related gastrointestinal diseases can be controlled.

3. Substitute to bottled water

Especially in India, flavoured drinking water is deemed as a direct substitute for bottled water. Courtesy of negligible price variance and added taste, flavoured water is the future.

4. Institutional demand

Apart from growing individual demand, several corporate partnerships are visible at the forefront. Theatres, airlines, hotels, fitness centres are few institutions where flavoured drinking water is preferred.

Challenges:

• Penetration into the rural market

Bottled water has not found its way into the rural market as of now. With more than 65% of the population residing in rural areas, feasible penetration is tough.

• Quality and hygiene standards

Bottled water and flavoured drinking water cough up a lot of criticism for lack of quality standards. Focussing on wholesome hygiene and ensuring the same throughout the process is a challenge.

What does the future hold?

The trends depict substantial growth in the flavoured drinking water industry over the next few years. This report furthers the claim, estimating an 11.5% CAGR of the global market till 2025. 

Today, venturing into the flavoured drinking market is a lucrative opportunity with tremendous growth potential.