Australia water enhancer market is projected to grow at a CAGR of 6.3% during the forecast period (2020 - 2025).

  • The Australian market is a highly developed market and is projected to hold a major market for water enhancers in the coming years.
  • In Australia, from working professionals to sports enthusiasts and students, the market for functional drinks is growing in the country. Individuals are increasingly buying energy drinks that contain caffeine as these carry a ’youthful and fresh image’. Thus, catering the market for water enhancer in the country.
  • The water enhancer market is largely dominated by foreign players and the demand for electrolyte compensation through drinks is expected to drive the sales, as more people incline towards fitness activities in the country.



Key Market Trends

Increasing Demand Sports and Energy Drinks Market

Australia is characterized by a high level of sports culture, leading to a massive surge in the consumption of sports and energy drinks. The active lifestyles of Australian consumers are driving demand for sports drinks as they contain electrolytes, carbohydrates, and other functional ingredients that are supposed to effectively hydrate and replace fluids lost during the workout, thus, creating an opportunity for water enhancer market in the country.

Numerous global players such as The Coca Cola Company and Kraft Foods are entering the market seeking growth prospects for water enhancers. The rising health consciousness in the country has led to augmenting the market potential for electrolyte and vitamin-enhanced products.

Supermarket/Hypermarket Drives the Retail Sector

The major trend which may be attributed to the growth of water enhancers through supermarket/hypermarket includes premiumization and health and wellness. Supermarkets make up the largest single market for the sale of water enhancers followed by convenience stores in Australia. With an increasing number of Australian consumers already rejecting carbonated soft drinks for health reasons, hypermarket and supermarket shelves have started to flood with healthy water enhancers.

Major global players are implementing distribution via supermarkets and hypermarkets as a marketing strategy for their products. In 2014, the new brands were launched as a trial in South Australia initially, to be purchased through leading supermarkets, in order to entice consumers seeking innovative products while grocery purchase.

Competitive Landscape

The Australia water enhancer market is highly fragmented owing to the presence of varied global and regional players. The players are strengthening their retail sector with an aim to strengthen their consumer base in the country. Product innovation and mergers and acquisitions are the most adopted strategies considered by the leading players of the market.

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