LONDON -- Retailers and consumers can expect to see more exotic flavors coming to the flavored-water market, according to a report from Technavio.
The global flavored-water market is witnessing an increasing demand for new flavors and consumers are demanding innovative and exotic flavors, according to the report Global Flavored Water Market 2017-2021. As a result, the competition is becoming intense in the market and manufacturers are trying to innovate to stay ahead of competitors.
“Flavored-water products with raspberry, strawberry, pineapple, cucumber and watermelon have been introduced in the market,” said Atul Kumar, a lead analyst from London-based Technavio. “Considering this trend among consumers, flavored-water manufacturers are introducing many
The growth of flavored water is expected to be driven by changing consumer lifestyles and preferences, as well as growing health awareness among consumers. These factors have resulted in the development of different varieties of flavors that are fueling the growth of the flavored-water market.
Because of its nutritional benefits, flavored water has emerged as a ready-to-drink health beverage and a better substitute for carbonated drinks.
“The Americas is the leading region in the global flavored-water market and is expected to witness a high growth rate during the forecast period," Kumar said. "Since flavored water is enriched with minerals, vitamins and natural flavors, the product attracts many health-conscious consumers.”
Manufacturers are coming up with innovative packaging that is convenient to carry and allows consumption directly from the package while on-the-go, the report said. Consumers are demanding transparent, labeled and smaller pack sizes that are environment-friendly.
Coca-Cola has come up with a plant-based packaging bottle. Companies such as PepsiCo, Coca-Cola, Danone and Nestle are taking the initiative to support 100% sustainable packaging and increase packaging recovery and recycling rates.
For the U.S. market, Technavio warns the market is "becoming saturated for flavored water." This should drive additional flavor innovation.
The report also recommends manufacturers look to expand their reach.
"To survive in the market and continue making profits, the vendors of flavored water need to tap a new market and customer base," the study said. "Flavored water, being a functional beverage and having several alternatives, was not that popular in emerging economies."
Soft drinks and caffeine-rich drinks such as tea and coffee are already in high demand in these nations. Although flavored water by key vendors such as Coca-Cola and PepsiCo are present in certain countries, they are generally consumed by affluent customers, the report said.
Technavio is a global technology research and advisory company. Its research and analysis focuses on emerging market trends.
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