Unbottling hydration drinks: A need-to-have or nice-to-sell?

The hydration trend is booming, with electrolyte‑rich launches flooding the market – from Gatorade’s Hydration Booster sachets to Alex Cooper’s female‑focused drinks and Lionel Messi’s new Mas+ line . Market forecasters suggest both legacy and newcomer brands are on the money: the global electrolyte drinks market is projected to reach $56.4bn (€48.5bn) by 2030, growing at a CAGR of 5.3%, according to Allied Market Research. However whether electrolyte-enhanced beverages – or any drink promising “ rapid hydration ” – are truly meeting a consumer need is up for debate. Most people may say they don’t feel properly hydrated , but that doesn’t mean they are. Is the hydration trend offering a solution to a problem that doesn’t exist? And if so, does that make the electrolyte-enhanced beverage the smartest marketing ploy in F&B? Whether hydration drinks are catering to a genuine need depends on who they’re targeting. If designed as a specialised medical nutrition product, then absolutely, hydration products can help people recover from illness, combat fatigue, or support immune function. These products likely contain higher quantities of functional ingredients than the electrolyte drinks sold on supermarket shelves. But for the hydration trend to explode as it has, it’s needed to reach wider audiences – not just people recovering from a bout of stomach flu. Hydration drinks have entered the mainstream, and in so doing, are marketed for everyday health and wellness. One of the best-performing examples is undoubtedly Unilever-owned Liquid I.V. – sachets made with electrolytes, vitamins and other nutrients that combine with water for “extraordinary hydration”. Liquid I.V. was acquired by the multinational in 2020, and is now considered the leading hydration brand in the US, and the largest brand in Unilever’s Health & Wellbeing business. Market analysts have also observed the rise of electrolyte drinks targeting mainstream consumers. But not all are convinced they’re deserving of their place on shelf. Emma Schofield, associate director of global food science at Mintel, is one such analyst. “The reality is that for healthy hydration, most people would benefit from just drinking regular fluids like water or tea, or other products that are low in calories, sugar, salt and saturated fats,” she says. In that respect, Schofield contends that electrolyte hydration products solve a problem that doesn’t exist. The implication is that for the general consumer, dehydration would best be resolved with affordable, readily available and healthy products like water or tea – offerings that don’t come packed full of artificial or added ingredients that worry consumers. Schofield isn’t alone – at least not entirely. Other industry experts also query whether everyday consumers truly need electrolyte‑enhanced hydration drinks, but simultaneously question how much that matters. Gary Stibel, founder and CEO of marketing management consultancy New England Consulting Group, follows this line of thinking. He agrees most people are “fairly well hydrated”, and if they’re not, then drinks like water, coffee and tea provide an obvious quick fix. For the general consumer, additional hydration is not required, he explains. “There’s so much hyperbole and marketing. Whether that’s ‘more hydration’ or ‘not all hydration is alike’. While there’s some substance, it’s mostly a marketing position.” But equally, from a business perspective, as long as electrolytes are combined with safe ingredients and packaged up in appropriate quantities, leveraging “hydration” as a marketing tool is a smart move, believes Stibel. Why? Because, it’s mostly harmless: “Most of us could use more hydration.” So is he encouraging his clients to get on board with hydration-focused offerings? Absolutely. That’s not because he backs a clever marketing ploy – although in business, who doesn’t? – but because there’s a new and growing group of consumers who do need more hydration. And will continue to need it for years to come. These consumers are otherwise referred to as GLP-1 users – the ones taking a new wave of medications for diabetes or weight loss. GLP-1 drugs don’t just have an impact on how much users eat, but also on how much they drink. “GLP-1s reduce your appetite for liquids, as well as for solids,” explains New England Consulting Group’s Stibel. That means users are consuming fewer beverages; they’re not as hydrated as they once were, nor as hydrated as they should be. “Hydration is important for all humans – particularly for athletes because they sweat, and it’s important for people on GLP-1s because they are consuming less liquid." This trend is not expected to abate. More companies are supplying GLP-1 drugs, and marketing pushes have stepped up. Prices are coming down, too. There’s real opportunity for brands to lean into the hydration trend, particularly given the spike in GLP-1 use. That doesn’t mean businesses need to pivot completely, but they should be considering investing in at least one GLP-1-adjacent product, says Stibel. “Some companies are jumping on the bandwagon, and most are sitting on the sidelines trying to decide whether it’s a fad, or whether the juice is worth the squeeze.” New England Consulting Group is “absolutely” backing businesses to develop products that promote hydration for these users. “Our experience with clients is, the juice is worth the squeeze." Join our free broadcast on functional beverage innovation, with speakers from PepsiCo, Curated Culture, Senescence Life Sciences and Lumina Intelligence. REGISTER NOW