Europe Water Enhancer Market - Growth, Trends, and Forecast (2018-2023)
Water enhancers, with their highly anticipated benefits, ensure great scope for applications in health care sector, creating a prospect for a prolific venture. Hence, production of beverages advanced, in terms of technologically in the last decade. Water enhancers are now available in the form of flavored, energy, and fitness drops in the market, each claiming unique benefits. Among these, flavor enhanced water accounted for maximum retail sales in 2015, and energy drops are witnessing high demand among athletes and fitness-oriented consumers. These products constitute around 80% of the entire product range. Recently, new products with weight management and skin rejuvenating formulae have also been introduced into the market.
The Europe water enhancer market is expected to register a CAGR of 14.4%, during the forecast period, 2018-2023.
Increasing Shelf Space in Retail Markets for Water Enhancers
The launch of Mio brand by Kraft shaped the market for players, pushing them to diversify their beverages segment. A major challenge a product faces in the introductory stages is getting the desired merchandizing space. Players in Europe water enhancer market initially focused entry through grocery stores and convenience store retailers and paired up with familiar products to push sales. Mio brand of Kraft foods focused on product differentiation and was positioned in the front counter by retailers to drive impulse buying patterns.
Flavored Drops Enjoy Consumer Preference
Most of the flavored drops in Europe are made from natural ingredients while traces of vitamins, like potassium may be found, which help with hydration. Consumers prefer adding few drops of flavored enhancers that instantly transform plain water into a kind of soft drink, thus making it more consumable. Increasing concerns about health, and a push to consume enough water to stay fit is one of the factors driving flavor drops market. Also, natural ingredient based products are more preferred. Arizona, Sweetleaf, Tate & Lyle are some of the producers of flavored drops.
UK dominates the European Water Enhancer Market
North America, which had low market for cordial and squash markets, was ideal for the launch of water enhancer products. However, the European water enhancer market is matured for squash/cordial products and is facing unclear positioning of water enhancers. Unless consumers are made aware of the positioning and differentiation of the pocket size products, players entering the European market will face challenge in catering to the population.
Kraft Foods and Mio are the global leaders in this segment. Dasani drops by Coca-Cola, new flavor splash & Gatorade by PepsiCo, Nestea water enhancer by Nestlé, and other player brands, like Skinny Girl, Orange crush, Icee Zero are some of the dominant brands, which have received consumer acceptance. These products are being positioned in the front shelves in retail markets and next to bottled water category to drive the sales.