Report Overview

Enhanced waters are simply beverages that are promoted in the market as water but contain useful elements such as vitamins and minerals, which is why they are commonly referred to as vitamin water. Enhanced waters generally have fewer calories compared to non-diet beverages.

United States Enhanced Water Market – Industry Trends & Forecast Report, 2029

United States enhanced water market was worth USD 2,131.0 million in 2020 and is further projected to reach USD 3,554.0 million by the year 2027, growing at a CAGR of 8.1% in the forecast period. Enhanced water is gaining popularity in the United States due to its preference over alcoholic drinks and regular water. Moreover, the demand for healthful thirst-quenchers is also being met by enhanced water. Moreover, the availability of a wide variety of flavors is also driving the growth of the US enhanced water market.

Source: BlueWeave Consulting

United States Enhanced Water Market- Overview

Enhanced waters are simply beverages that are promoted in the market as water but contain useful elements such as vitamins and minerals, which is why they are commonly referred to as vitamin water. Enhanced waters generally have fewer calories compared to non-diet beverages. Besides its health benefits, this drink also has a unique combination of natural and artificial flavors and colors that make it appealing to consumers. The most popular enhanced water flavors include raspberry lime, tropical mango, strawberry lemonade, etc. Enhanced waters include zero-calorie beverages as well as those flavored with natural botanical extracts.

United States Enhanced Water Market Forecast and Trends

Growth Drivers

Availability of a Wide Range of Products

Enhanced water has gained immense popularity in the US market not only for its health benefits but also for offering a wide range of flavored and colored water. The manufacturers offer various flavors such as lemon, lime, orange, tropical boost, blackcurrant, apple, raspberry, etc. Furthermore, enhanced water manufacturers in the U.S. are also focusing on adding USP to their products by using herbal ingredients such as milk thistle and other herbal extracts. For instance, VOSS Water recently launched VOSS+ which will feature three enhanced waters with berry essence taste and citrus fruit flavors.

Health Benefits Offered by Enhanced Water

The World Health Organization (WHO) reported that 9 out of 10 US adults do not consume enough fiber for a healthy diet. This is a direct consequence of modern lifestyles. Enhanced water is a good source of essential nutrients such as sodium, potassium, magnesium, and calcium. Enhanced water supplies sufficient amounts of electrolytes necessary for maintaining fluid balance, regulating blood pressure, and assisting the muscles to contract and relax. As a result of such health benefits, enhanced water is becoming increasingly popular.

Restraints

Availability of Alternative Sources of Nutrition and Potential Health Concerns

Enhanced water is preferred over regular water because of its health benefits and ability to fulfill nutritional needs in the body. However, there are already several alternative options to achieve this purpose. Many US citizens depend on supplements in addition to regular nutritional foods to gain significant amounts of vitamins and minerals. This factor acts as a major restricting factor for the growth of the enhanced water market in the US.

Additionally, some enhanced drinks are overly rich in certain nutrients. One study found that 46 drinks contained nutrient levels that were above the recommended daily requirement. Moreover, except for vitamin D, Americans don't lack vitamins, but overdosing on some vitamins can prove harmful.

Impact of COVID-19 on United States Enhanced Water Market

The unprecedented outbreak of the COVID-19 pandemic has had a positive effect on the U.S. enhanced water market. The US was one of the worst COVID-19 affected countries in the world. The U.S. government had to impose a lockdown to curb the spread of the virus and citizens were requested to remain in quarantine. People were therefore at home during this period, and they had more time than ever before to spend on their physical and mental health. Due to this, the demand for the enhanced water also proliferated, propelling the overall market growth. Furthermore, the online channels helped maintain a smooth flow between supply and demand.

United States Enhanced Water Market - By Water Type

Based on water types, the U.S. enhanced water market is segmented into alkaline water, nutrient water, electrolyte water, and oxygenated water. Among these, the nutrient water segment accounts for the largest share in the U.S. enhanced water market. In order to maintain vitamin and mineral levels in their bodies, young and working adults prefer flavored water without sugar or sugar substitutes. However, the demand for alkaline water is also increasing at a high rate in the U.S. because of the health benefits it offers. Several studies suggested that alkaline water is very beneficial in optimizing the pH level in the body, which acts as a driving factor for this segment’s growth.

United States Enhanced Water Market - By Distribution Channel

Based on distribution channels, the U.S. enhanced water market is segmented into online and offline channels. The offline segment captures the largest market share as enhanced water is easily available in supermarkets/hypermarkets, convenience stores, drug stores, and chemist shops, etc. These outlets offer a wide range of products of different flavors, prices, and quantities. That is why the manufacturers are often dependent on offline channels for boosting the sale of their products. However, the online channels are also gaining significant traction, especially after the COVID-19 outbreak as consumers nowadays prefer purchasing things online instead of stepping out of their homes.

United States Enhanced Water Market - End Users

Based on end-users, the U.S. enhanced water market is segmented into commercial and residential. The residential segment accounts for the largest market share, fueled by the increasing health consciousness among consumers and prevalent health and fitness trends, especially among the younger demographic. Furthermore, the growing awareness of the negative impact of dehydration on human health and the increasing contaminant levels in potable water are also driving the demand for enhanced water among residential segments. The commercial segment, on the other hand, is also expected to grow at a high CAGR because of the growing demand for healthy and nutritious water in commercial spaces, such as offices, schools, universities, etc.

Competitive Landscape

The leading market players in the U.S. enhanced water market are PepsiCo, Coca-Cola, H2rose, Just Goods Inc., Constellation Brands Inc., Montane Sparkling Water, Hint Water Inc., Supplying Demand Inc., Keurig Dr Pepper, United Breweries Limited, Karma Culture LLC, and other prominent players.

In order to gain greater market penetration and expand their revenue share, industry players offer a wide array of products with different flavors and additional functional ingredients. These companies target different demographics like teens, working adults, athletes, and offer products according to their taste and preference to attract more consumers and create brand loyalty.

Recent Developments

• In July 2021, FREE RAIN, an enhanced sparkling water brand, launched ‘Arousal', a new addition to its line of functional beverages, containing pink grapefruit, a hint of basil, and maca.

• In July 2021, Scandia Inc.’s Xtreme Organics announced the launch of ‘HYDRA Sports Water, the only cannabinoid-enhanced water made with USDA-certified organic hemp. The new HYDRA Sports Water is targeted towards athletes, trainers, and doctors.

Scope of the Report

By Water Type

• Alkaline Water

• Nutrient Water

• Electrolyte Water

• Oxygenated Water

By Distribution Channel

• Offline

• Online

By End-User

• Residential

• Commercial