The Canada water enhancer market is anticipated to witness a CAGR of 5.27% during the forecast period (2020 - 2025).

  • A considerable Canadian population is suffering from obesity due to hectic work schedules and on the go lifestyle. Thus, in order to compensate for the nutritional losses, the market of water enhancers is likely to witness progress in the near future.
  • Water enhancers with energy-boosting qualities are becoming an increasingly common trend in Canadian retail. In general, the product offerings in smaller pack sizes provide handling and usage convenience to the consumers, add value for retailers in terms of value by shelf space, and add margins to the manufacturers, and are, therefore, in heavy demand.
  • The shift of consumers to healthier consumption habits has inclined their interest in non-carbonated beverages over the carbonated ones, which is likely to foster market growth.



Key Market Trends

The Popularization of Functional Beverages is Likely to Foster the Market Growth

With a rise in demand for functional ingredients, the demand for functional beverages in the local market has inflated, which has, in turn, led to a boost in the water enhancer market as people continue seeking healthy drinking options. To cope up with the busy lifestyle, the Canadians prefer to consume drinks which can revitalize their body by compensating for the nutritional losses.? As the demand for carbonated beverages continues to decline and the non-carbonated drinks market climbs up, liquid concentrates provide an attractive add-on opportunity for both tap water drinkers and bottled water customers to increase their water intake by adding flavors and extra nutrients to it.

Supermarket/hypermarket is a Largest Segment for Distribution of Water Enhancers in the Country

Supermarkets and hypermarkets have played a vital role in food and functional beverage distribution in Canada. The retail channel is widely accepted by both companies and consumers, due to the increasing consumer interaction with the premium shopping experiences associated with the supermarkets and hypermarkets. As a considerable consumer portion is already abstaining from carbonated soft drinks for health reasons, hypermarket and supermarket shelves have started to flood with healthy water enhancers. Moreover, keeping multiple brands’ products together provides ease of comparison to the consumers in choosing their favorite water enhancers. Another big reason for boosted sales in the country is that Canadians prefer to shop at supermarkets due to the availability of vivid products under one roof.

Competitive Landscape

The unclear positioning of the high-valued products is causing barriers to trade and causing companies to observe the cannibalization of sales between their water-enhancer category and cordial product sales. For this reason, the major companies are aiming towards the development and introduction of new package types and manufacturing processes, as a strategy to deliver water enhancers. The innovation of blending exotic flavors is another market strategy adopted by Kraft Heinz company to expand into several regional markets. Moreover, other global brands are trying to increase their sales through advertisements and by introducing and displaying their products in a way that they catch consumer sight easily.

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