O2 Natural Recovery represents the latest evolution in the expanding market for functional, natural beverages. Currently, the functional water sector—including products like raw water, hydrogen water, and alkaline water—has reached a market value of $2.1 billion, as reported by Campaign. Analysts from Technavio predict that the global functional water market will experience a compound annual growth rate of nearly 9% from 2018 to 2022. Given the excitement surrounding this segment, manufacturers have eagerly entered the fray, launching water beverages with labels such as “alkaline infused,” “vapor distilled,” and “iceberg water” to distinguish themselves from their competitors. However, research indicates that 35% of American consumers find these on-pack claims confusing.
The confusion among consumers is understandable. Most studies in the functional water domain have been conducted on animals, and there isn’t sufficient scientific evidence to support the wellness claims associated with these products. The Center for Science in the Public Interest has stated that the evidence for health-related claims regarding alkaline water is minimal, labeling the product a waste of money. 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 substantial evidence to substantiate the benefits of oxygenation beyond anecdotal reports, convincing consumers to pay a premium for these beverages may prove challenging.
Nonetheless, other infused water products continue to perform well in the market. For instance, Smartwater, vapor-distilled by a Coca-Cola subsidiary known as 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 as the most popular drink in the U.S. in 2016. However, it will take time and scientific investment to determine whether infused waters can significantly influence health.
Simultaneously, there is little doubt that manufacturers will persist in experimenting with additives as they seek to prove that bottled water can be beneficial for the body and justify its price. In this context, products like a women’s multivitamin with calcium citrate could complement a healthy lifestyle and further drive consumer interest in wellness-focused beverages. As the market evolves, the integration of such health-oriented products may become increasingly relevant, potentially providing additional avenues for growth and consumer engagement.