The Indian hydration market is expected to grow by 12-15% per annum, with a current size of $1.2 billion. To capitalize on this trend, Hindustan Unilever (HUL) and Reliance Consumer have launched two new products: Liquid IV, an electrolyte drink in powder format targeting the affluent at Rs 360 for three sticks, and Spinner, a sports drink priced at Rs 10 a bottle, targeting the masses.
While HUL’s Liquid IV aims to bridge the gap between hydration and overall wellness for the affluent, Reliance Consumer’s Spinner seeks to democratize the sports drink category by making it more accessible to a wider audience. Both products cater to different consumer segments, with HUL targeting the affluent and Reliance targeting the masses.
The Indian hydration market is complex, with various players, including PepsiCo, Coca-Cola, Dabur, and Tata Consumer, along with healthcare majors like Cipla and Himalaya Wellness, operating in the space. The Food Safety and Standards Authority of India has also brought energy drinks under stricter scrutiny, and the broader hydration category has faced criticism from social media influencers, doctors, and health experts over product claims.
HUL’s ED, Beauty & Wellbeing, Harman Dhillon, believes that products like Liquid IV stand out due to their focus on healthier hydration options and the shift away from caffeine-laden energy drinks. Reliance Consumer’s COO, Ketan Mody, argues that Spinner is designed to be a affordable and effective hydration solution for everyone.
Both companies are employing different strategies to reach their target markets. HUL will have a digital-first approach for Liquid IV, focusing on metros and Tier 1 cities, while Reliance Consumer will sell Spinner through both online and offline channels, partnering with IPL teams to increase brand visibility. Ultimately, the two companies are positioning themselves to capitalize on the growing Indian hydration market, which is expected to continue growing at a rapid pace.