Segmentation of water products into functional beverage market

As more and more people view sugar as a major source of unwanted calories and weight gain, consumers are taking an active role in controlling their sugar intake and moving away from high-sugar carbonated soft drinks, while packaged water products are gaining more traction with their low-sugar, low-calorie features.


In its recently released New Leaders report, Information Resources (IRI) said, "In recent years, the water segment has begun to heat up, driven by trends around flavor, ingredient fortification and carbonation, creating a healthy beverage with a sense of indulgence." The report notes that the water industry is now at a completely different level of competition than ever before, with bottled water competing with soft drinks, juices, energy and sports drinks, and virtually every beverage category.