Global Packaged Cactus Water Market - 2021-2028
Cactus water, along with other plant-based drinks including coconut water and aloe vera juice, is the newest addition to the natural beverage market. The juice from the bright pink fruit of the prickly pear, or nopal, cactus is used to make most cactus waters. The fruit has 24 betalains that help keep the skin healthy, reduce inflammation, and hydrate the body. The global packaged cactus water market is likely to reach USD xx million in 2028, from its recorded value of USD xx million in 2020, growing with a CAGR of XX% during the forecast period. Because of its health benefits, the product is gaining popularity among fitness enthusiasts and athletes. It contains taurine, an amino acid that aids in the enhancement of athletic performance as well as repairs muscle tissues. As a result, packaged cactus water is becoming more common as a functional drink among consumers doing an intense workout.
Consumption of packaged cactus water is expected to grow among health-conscious consumers, especially among fitness enthusiasts as it offers various health benefits. It is consumed by individuals to manage blood pressure, boost immunity, reduce the risk of type 2 diabetes and improve bone and gastrointestinal health. Furthermore, studies have shown that it can protect the liver from liver toxins and alcohol-induced damage. This ultra-hydrating beverage also aids in the treatment of alcohol hangovers. As a result, customers take it before drinking alcohol to lessen their chances of being hungover. Moreover, it is naturally low in calories and sugar, which is a current trend in the food and beverage industry.
Other major growth-inducing factors include product innovations such as the launch of packaged cactus water in novel flavors such as lime, watermelon, strawberry, pineapple, and star fruit. For instance, iCACTUS! launched three organic drinks in March 2020, with lime, papaya, and watermelon flavors. Pineapple, lime, strawberry, papaya, mango, watermelon, pear, peach, cucumber, and star fruit are the popular fruit flavors available in the market. Among these flavors, lime is the most common. Hotels, cafes, and restaurants are now experimenting with flavored versions and combining them with other alcoholic and non-alcoholic drinks to provide consumers with unique dishes.
The drink, however, is more expensive than traditional plant-based drinks like coconut water. The higher cost of packaged cactus water may hinder its adoption in the near future.
In terms of distribution channel, the offline segment is dominating the market and is estimated to grow at a CAGR of XX% during the forecast period. Supermarkets and hypermarkets are the world's largest product distributors. These retail outlets have attractive deals, discounts, and a diverse selection of items all under one roof. These characteristics of supermarkets and hypermarkets have propelled customers to purchase from this distribution channel. Tesco PLC, Kroger, and Ahold are three of the most well-known supermarket and hypermarket chains in the world. Furthermore, over time, these packaged cactus water variants have gained shelf space at regional and local grocery stores. Manufacturers have been introducing packaged cactus water to global and regional retail chains in order to increase global adoption of the drinks. For instance, ¡CACTUS! launched its products at H-E-B Grocery Company, a Texas-based supermarket chain, in August 2020, to expand its retail presence. However, the online segment is expected to grow with a highest CAGR of XX% during the forecast period.
North America is expected to dominate the global packaged cactus water market with a market revenue share of XX% in 2020. The presence of key companies in the U.S., including STEAZ and True Nopal Cactus Water, has increased the availability of the products in the region. Moreover, the availability of products in several North American retail chains, such as Kroger, Tesco PLC, Whole Foods Market, Safeway Inc., AJ's Fine Foods and Sprouts Farmers Market, Inc is expected to drive the market growth in this region, as the easy access to such products increase the penetration of the product.
Asia Pacific is expected to grow at the fastest rate of XX% during the forecast period, as companies expand their footprint in the region in response to increasing consumer health consciousness and increased spending on food and beverages. For example, True Nopal launched its products in New Zealand and Australia in January 2016. A New Zealand-based firm, Davis Food Ingredients, represents the company in these nations.
The market for packaged cactus water is very niche and dominated by the market's major companies. Key players have been marketing their products by emphasizing health claims that appeal to consumers, such as the absence of preservatives, the absence of added sugars, the absence of GMOs, the absence of gluten, the absence of calories, and veganism. As consumers pursue environmentally friendly packaging, aluminum sleek cans and tetra packs are common choices among industry players. Some of the key players in the market are Caliwater, LLC, True Nopal Cactus Water, Pricklee LLC and The Cactus Water Co. LLC among others. To remain ahead of the competition and expand its customer base, companies are focusing on product innovation, regional growth, and product promotions. For instance, STEAZ, a green infused beverage producer, introduced a line of prickly pear drinks blended with organic green tea.
The demand for packaged cactus water is expected to grow during the pandemic. The ongoing COVID-19 pandemic has changed consumers drinking and eating habits. People have become more conscious about the fruits and vegetables they have been consuming on a day-to-day basis. Almost every household kitchen has immunity-boosting drinks at their disposal. Hence, the pandemic is expected to propel the market growth. Hence, key players are launching new products taking advantage of current situation. For instance, The Cactus Water Co. LLC released ¡CACTUS! Organic Cactus Water in June, 2021. Available in Papaya, Lime and Watermelon varieties, ¡CACTUS! is an excellent source of vitamin C and contains additional antioxidants, electrolytes and amino acids, including taurine