, APAC
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Hydration products gain traction in APAC

It was driven by increased awareness of health concerns like global warming and modern lifestyles.

Consumers in the Asia Pacific region are increasingly favoring hydration products, according to Euromonitor International.

The report said the shift was driven by heightened awareness of health concerns such as global warming and modern lifestyle demands.

About 45% of respondents in the region prioritise adequate daily hydration, with the highest recognition amongst those aged 15 to 29.

Traditional categories such as packaged water and sports drinks are expanding to include innovative segments such as sports nutrition and powder concentrates.

In 2023, sports drinks dominated the market in the region with $6.6b in sales, whilst sports protein ready-to-drink (RTD) and powder concentrates are expected to grow at CAGRs of 12% and 5%, respectively, through 2028. 

Electrolyte-enriched products are gaining popularity not only for sports but also for heat fatigue and everyday health. 

Brands are also increasingly incorporating health-promoting ingredients like protein, BCAA, ginseng, and traditional Chinese elements to cater to diverse consumer needs. 

“With an increase in health occasions addressed by functional beverages, coupled with consumers’ attention to the health-promoting ingredients in their products, beverage and sports nutrition brands are further segmenting their products by incorporating different healthy ingredients to cater to multiple consumer needs,” the report noted.

The market is also seeing a rise in convenient formats such as small packages of protein RTD and soluble powder concentrates, which appeal to budget-conscious and on-the-go consumers. 

“Instead of bulky protein powders or heavy bottled drinks, consumers with everyday hydration needs prefer more portable and economical options for casual replenishment,” the report said.

Successful brands will need to innovate continually, leverage scientific research, and carefully balance pricing with product innovation to capitalise on the growing demand for functional hydration solutions across the region.

“To ensure brand success, brands need to consider the demographic, the specific hydration need states, and the level of market maturity to provide the appropriate product ingredients and format,” the report stated.

Premium features and broader health benefits are sought after in developed markets such as South Korea, Japan and Australia. Additionally, affordability remains key in developing Southeast Asian markets given the low disposable income.

“All in all, brands must balance between pricing and product innovation offering hydration benefits to ensure their success in the long term,” the report said.

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