From Soda To Water, Beverage Manufacturers Are Turning To Innovation For Market Share
By Karla Paris
New report shows consumer trends are paving the way toward the next big opportunity for bottlers
A new market report published on April 16 by Transparency Market Research analyzed the Flavored and Functional Water Market from 2013-2019. The report notes that the global flavored and functional water market was valued at $17.2 billion in 2012 and is expected to grow at a CAGR of 11.5% over the next five years, reaching an estimated value of $36.7 billion in 2019.
Growing health concerns from consumers, emerging markets in Asia, Latin America, and the Middle East tied to urbanized development, and a population more conscious about staying fit have all lead to a decline in soda sales and the rapid development of the water market. While the soda industry is becoming more aggressive in efforts to keep the “sweet” in their products to meet consumer health guidelines, manufacturers are investing in R&D to grow its presence in the water markets.
On the soda side, Coca-Cola is test marketing a naturally sweetened mid-calorie cola called Coke Life, sweetened with a combination of sugar and stevia, has only 64 calories, and 50 percent less sugar than Classic Coke. Another soda manufacturer, Dr Pepper Snapple (DPS), recently announced it was also test marketing a sugar-stevia blend. Just like Coke Life, DPS’ sugar-stevia blend will be a naturally sweetened, 60 calorie beverage containing half the sugar.
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On the water side, Coca-Cola released a new beverage product, as well as a product extension at the NAMA OneShow this year. DASANI Sparkling is an unsweetened, zero-calorie sparkling water available nationwide in 12 fluid ounce cans in lime, lemon, apple, and berry flavors. Additionally, Coca-Cola continues to build on the company’s success with DASANI Drops, a beverage flavor enhancer that allows consumers to add flavors and sweetness to their water.
It’s not just the bottled water market that beverage makers are trying to grab market share. Enhancer manufacturers such as, Heartland Food Products Group — a producer of drink mixes and zero-calorie sweeteners — announced its expansion in the water category by making a substantial investment in its Indianapolis state of the art manufacturing plant. Heartland plans to expand its capability to include new versions, flavors, and packaging options. Currently, Heartland’s water enhancer brand, Go Splash, comes in three varieties including: Vive, Energy, and Sport.
In addition, the Coca-Cola is building on the company’s success with DASANI Drops, a beverage flavor enhancer that allows consumers to add flavors and sweetness to their water. The company is now offering three new DROPS which include Powerade Zero Drops, vitaminwater zero drops and Minute Maid Drops.