Table of Contents

Overview 1
Catalyst 1
Summary 1
Table of Contents 2
Table of figures 3
Table of tables 4
Analysis 5
Introduction 5
Drivers of the hydration and refreshment trends 5
Consumer segmentation 6
Women consider hydration more important than men 6
Older consumers are at most risk from dehydration 7
Hydration is key to a child's development 8
Refreshment is most important for emerging consumer groups in alcoholic drinks 8
TREND: Hydration is becoming increasingly important to consumers 9
Bottled water occasions are increasing, taking an increasing 'share of throat' 9
Bottled water now accounts for half of all soft drink consumption in Europe 11
Environmental concerns may encourage greater tap water consumption in the future 11
Take-outs and implications: The need for instant and continuous hydration has grown in consumer importance 12
TREND: Refreshment is an increasingly key element of beverage consumption 12
Take-outs and implications: refreshment has gained importance due to emerging consumer groups and occasions 14
INSIGHT: There have been notable success stories of brands targeting hydration and refreshment needs 14
Sprite obeys consumer thirst for hydration and refreshment 14
Mizone appeals to consumers searching for instantaneous hydration 15
Blue moon focuses on refreshment and drinkability 16
Take-outs and implications: hydration and refreshment are key attributes in providing success in the beverage industry 17
INSIGHT: Hydration and refreshment trends are important to a number of markets 17
Hydration and refreshment trends are important to a number of beverage markets 17
Hydration and refreshment can also be important to food and personal care markets 21
Take-outs and implications: hydration and refreshment trends are most important to beverage markets yet should not be overlooked in food and personal care 23
INSIGHT: A number of factors affect people's perception of how refreshing a particular beverage may be 23
Take-outs and implications: key elements of refreshment should be met when creating drinkability 24
INSIGHT: There are misconceptions about what consumers think they 'need' to drink 24
Awareness of hydration needs are high but so is confusion and non-compliance 24
Take-outs and implications: educating consumers and providing hydration solutions will prove successful going forward 25
INSIGHT: Hydration directly affects mental and physical performance 25
Take-outs and implications: the mental and physical effects of hydration are important to a number of consumers 26
Action points 27
ACTION: Educate and clearly inform consumers about hydration 27
Target groups with the greatest need for hydration 28
ACTION: Enhance the refreshment factor of beverages 29
ACTION: Use hydration and refreshment as a means to differentiate and premiumize your product 30
Emphasize the positive impact of instant and continuous hydration 30
Avoid compromising or creating trade-offs by neglecting other need-states 32
APPENDIX 34
Definitions 34
Methodology 34
Further reading 34
Ask the analyst 35
Datamonitor consulting 35
Disclaimer 35
List of Tables
Table 1: Overall and per capita bottled water occasions, Europe & US, by country, 2002-2012 10
List of Figures
Figure 1: There are a number of drivers to the hydration and refreshment trend 5
Figure 2: Consumers who responded 'important' or 'very important' to the question: "How important are the following dietary approaches - Drinking plenty of water?" 6
Figure 3: Americans associate a healthy lifestyle more with bottled water than any other bottled beverage 10
Figure 4: Sprite marketing materials focus heavily on hydration and refreshment 15
Figure 5: Mizone Rapid focuses on instant hydration 16
Figure 6: Blue moon offers a refreshing easy beer drinking experience 17
Figure 7: Analysis of the current importance of the hydration trend to non-alcoholic beverage markets and future forecast for importance in five years from now 19
Figure 8: Analysis of the current importance of the refreshment trend to non-alcoholic beverage markets and future forecast for importance in five years from now 20
Figure 9: Analysis of the current importance of the refreshment trend to alcoholic beverage markets and future forecast for importance in five years from now 21
Figure 10: There exists market opportunity in addressing consumers' skin concerns with regard to hydration 22
Figure 11: A number of factors affect the refreshment level of a beverage 24
Figure 12: Hydrate20 attempts to educate and inform consumers about the need for hydration and the benefits of the product using claims backed up by scientific research 27
Figure 13: Hydrating products should be targeted at groups with the highest need such as children 28
Figure 14: There exists cross market opportunities such as healthy hydration focused foods 29
Figure 15: Products which offer hydration benefits will allow for a price premium 31
Figure 16: Hydration is important to beauty aids, for both topical and 'beauty from within' products 32
Figure 17: Ensure that other key need-states are met along with hydration and refreshment 33