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Monitor: Hydration and energy opportunities in the natural channel
The natural channel is largely left out of today's hydration and energy beverage boom but retailers and brands might find opportunities in education and displays. Find out more.
3 Min Read
We’re not sure how Americans got so thirsty but sales and growth for hydration and sports energy drinks has been nothing short of astounding. Clocking 13.9% growth in 2023, the combined categories added up to $46.4 billion, Nutrition Business Journal estimates.
BY 2027, NBJ expects the two categories to be nearly equivalent in size to the entire supplement market.
But as remarkable as those numbers are, it’s also remarkable how small a part the natural channel plays in those guzzled gallons. According to NBJ’s Sports Nutrition and Weight Management Report, only 2.9% of those sales happened in the natural and specialty channel, which includes both natural grocers and standalone supplement stores like GNC.
That may sound alarming, but it’s also important to point out that many of the products in the hydration and energy beverage category are not exactly in line with the health-promoting values of the natural channel. The products can be formulated thoughtfully and produced responsibly, but they also can be made with too much sugar, too many artificial sweeteners and more stimulants like caffeine than would seem at home in a “health food” store.
Such issues have long been well known in beverages focused on sports and energy. There are 34 grams of sugar, for instance, in a 20-ounce Gatorade. That’s behind the 39 grams in a 12-ounce Coca Cola, but they exist in the same ballpark of sweetness. Caffeine can also be high: A 12-ounce bottle of Celsius packs 200 milligrams, significantly more than a strong cup of coffee.
Hydration is another matter. The truth is that most people, most of the time, are not so dehydrated that they should be worrying about replacing electrolytes. People who should be drinking water are sipping hydration products in the office as though they were running marathons. The sodium count can be quite high. We’ve seen products where the sodium in one drink matched 70% of what the USDA thinks the average person should consume in a whole day.
All of that leaves the natural channel in a peculiar spot. Nobody wants to leave money on the table and the $46.39 billion U.S. consumers spent on sports hydration and energy beverages in 2023 is a lot of money. The role natural channel retailers might be able to play here isn’t packing the refrigerator case with the most popular products but instead offering both alternatives and education.
How much caffeine do you really need and what is the most healthful way to get it? When is hydration important? What do people need to know when they look to replace electrolytes lost while they are actually working out, not sitting at a desk? And when are you better off drinking plain old water? What are the caffeine alternatives and are they healthy?
This is the kind of education the natural channel was founded to deliver. Yes, we all need hydration. There is a place for caffeine. The sales growth tells us there is a, yes, thirst for information on this. A store that offers programming or in-display information would find that it resonates with customers.
We don’t know how Americans got so thirsty, but we know they need more information before they unscrew the cap on their next hydration or energy beverage.
See sports nutrition sales data and insights in the new NBJ Sports Nutrition and Weight Management Report.
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