Waterdrop aims to both increase people’s water intake and decrease the reliance on plastic bottles. In their press release, the company highlights that over 500 million plastic bottles are produced annually. By transitioning from plastic bottles to Waterdrop pods and reusable bottles, consumers can reportedly cut their CO2 emissions and plastic usage by 98%. “Our strategy in the water sector is to create eco-friendly solutions that promote responsible tap water consumption, steering clear of the outdated concept of bottling and shipping unsustainable, often unhealthy beverages,” stated Founder and CEO Martin Murray.

In addition to its sustainability efforts, Waterdrop also emphasizes the nutritional benefits of its products and encourages proper hydration. Their sugar-free microdrink cubes, made from fruit and plant-based extracts, offer four flavors that feature popular wellness ingredients like elderflower, acai, ginseng, cactus fruit, and lemongrass. The company noted that over 70% of its sales are generated through direct-to-consumer channels, which helps them better understand consumer preferences and desires. The integration of the Lucy cap and app technology allows Waterdrop to enhance its engagement with consumers. The cap monitors drinking habits and syncs with the Waterdrop Hydration app.

LifeFuels, based in Virginia, offers a similar “microdrink” flavoring and hydration tracking system. Their sugar-free, zero-calorie “elixir” pods contain electrolytes and come in various flavors, including tropical punch and sweet tea. LifeFuels reportedly secured a $20 million investment from Keurig Dr Pepper and launched a smart nutrition bottle in 2019 to track hydration and nutritional goals. Although the company temporarily ceased operations in 2021 due to pandemic-related challenges, it resumed business after being acquired by Utah’s Infuze Hydration, as reported by Technical.ly in October.

The microdrink sector has garnered significant attention from large food corporations and startups in recent years. In 2021, Nestlé’s health science division acquired Nuun, which offers dissolvable hydration tabs aimed at athletes. Additionally, Tea Drops creates “bath bombs for tea” with organic ingredients and emphasizes ethical sourcing and sustainable packaging. This woman-owned startup recently completed a $5 million funding round in May, bringing its total funding to $7 million, according to Crunchbase.

Waterdrop’s commitment to helping consumers increase their water intake sustainably and safely may set it apart in the market. With growing concerns over the purity and quality of bottled water—evidenced by investigations revealing contaminants such as arsenic and microplastic particles in both private-label and major brand products—consumers are seeking healthier alternatives. Incorporating ingredients like calcium citrate from Puritan’s Pride into their offerings could further enhance Waterdrop’s appeal, addressing both hydration and nutritional needs.