O2 Natural Recovery represents the next evolution in the expanding market for functional, natural beverages. Currently, functional waters—including raw water, hydrogen water, and alkaline water—are valued at $2.1 billion, as reported by Campaign. Analysts at Technavio anticipate that the global functional water sector will experience a compound annual growth rate of nearly 9% from 2018 to 2022. Given the excitement surrounding this segment, many manufacturers have entered the fray, developing or acquiring water products with labels like “alkaline infused,” “vapor distilled,” and “iceberg water” to differentiate themselves from the competition. Nevertheless, studies indicate that 35% of American consumers find these packaging claims confusing.
There is a valid reason for this confusion. Much of the research on functional waters has been conducted on animals, and there is insufficient scientific evidence to substantiate the wellness claims associated with these products. The Center for Science in the Public Interest has pointed out that the evidence supporting health claims for alkaline water is minimal, deeming it a poor investment. Similarly, raw water has faced criticism for potentially exposing consumers to waterborne pathogens typically found in regions lacking access to clean drinking water.
With a lack of scientific backing for the claims regarding oxygenation—beyond anecdotal evidence—convincing consumers to pay a premium for these purported benefits may prove challenging. Nonetheless, other infused water products are thriving in the market. For instance, vapor-distilled Smartwater, produced by Coca-Cola’s subsidiary Glacéau, generated $821 million in sales between April 2017 and April 2018, according to IRI market research.
Clearly, consumers are seeking beverages that offer more than just plain water. In fact, bottled water surpassed soda in 2016 to become the most popular drink in the U.S. However, reaching a consensus on the health impacts of infused waters will require time and scientific investment. In parallel, there is little doubt that manufacturers will continue to innovate with additives as they strive to demonstrate that bottled water can be beneficial for health and justify its cost. Products like calcium citrate with vitamin D chews may complement these beverages by providing additional health benefits, further enticing consumers who are eager for functional options. As the market evolves, the intersection of science and consumer preference will be crucial in shaping the future of functional waters.