Glanbia Nutritionals reveals insights on emerging proactive hydration trend

Hydration is no longer a reactive response to thirst and industry experts reveal consumers are increasingly aware of the vital role hydration plays in overall health. This growing consumer focus has led to a surge in demand for beverages that not only hydrate but also provide added functionality. These products often include essential vitamins, minerals, electrolytes, probiotics, and herbal extracts to enhance physical well-being.

At Natural Products Expo West (NPEW) 2025, Nutrition Insight caught up with Glanbia Nutritionals to discuss its latest innovations in “proactive hydration,” the term for when consumers drink with the intention of maintaining optimal hydration levels. The company underscores that the trend is particularly strong among Gen Z and Millennials, who are prioritizing hydration as part of their overall wellness routine.

“The way I like to describe this is that there’s a bit of a paradox that’s going on with hydration right now,” says James Stone, VP of global Marketing & Insights at Glanbia Nutritionals. “Half of consumers report that hydration is very important to them from a well-being standpoint, but when you dig down into it, 44% of consumers are basically saying that they haven’t drank plain water in the last three months.”

“40% of consumers claim that they don’t drink enough water, and 35% of consumers don’t enjoy the experience. They know that they need to hydrate, but only a fraction of them are either drinking water, participating, or even enjoying the experience. Now, if you compare that with functional hydration, 54% of consumers have consumed a functional beverage in the last three months.”

“When you think about the total US population, the average US consumer consumes about 3.8 functional beverages per week, but among the 54% that consume functional beverages, it’s seven per week. They’re having one a day, they’re really involved, and that’s being driven by Gen Z and Millennials, in that order.”

Hydration takes the lead

Hydration is a leading driver of functional beverage consumption, and Glanbia Nutritionals asserts that its research shows it accounts for 25% of the market. Additionally, the company reveals that 78% of North American consumers recognize the connection between hydration and overall health — a connection that could fuel growth in the electrolyte and sports drinks spaces.

The North American functional beverage market is on track for significant expansion, with a CAGR of 9.6% from 2023 to 2028. Glanbia Nutritionals says its research shows that by 2028, the market is expected to reach a staggering US$110 billion, which presents ample opportunities for brands to innovate and cater to evolving consumer expectations.James Stone, VP of global Marketing & Insights at Glanbia Nutritionals.

“Gen Z and millennials have really taken on this idea of functionality and proactive hydration,” Stone explains. “They want their beverages to do something more for them than just hydration, and they're looking for a range of benefits.”

“The proactive side is all about them, thinking more about the roles of functionality and hydration and how they can contribute to other areas of well-being, such as cognitive health and digestive health, and they’re choosing beverages that help them on that journey, as opposed to just drinking because they’re thirsty.”

Trend drivers

Glanbia Nutritionals adds that for brands looking to capitalize on the proactive hydration movement, understanding consumer preferences is key. According to the company, there are three major purchase drivers in the functional hydration space. These include refreshing taste, quick consumption, and hydrating benefits.

Consumers prioritize beverages that offer a refreshing taste, with 27% seeking drinks that are hydrating and enjoyable. Convenience is also a key factor, as 27% favor options that can be consumed quickly to accommodate busy lifestyles. Additionally, 29% are drawn to products with clear hydration benefits, such as those with functional ingredients like electrolytes and minerals.

“We are placing more of our bet around functional and proactive hydration,” Stone underscores. “We think that because of our nutritional, functionality, and flavor capabilities, and we’re excited about some of the emerging formats.”Glanbia Nutritionals booth at NPEW 2025.

“There’s no doubt that beverages are still the driver, and it’s still the lion’s share, but when I see a segment growing at 25% CAGR over several years — even off of a slow base — that’s going to get our attention. There’s something going on that the end users are being more receptive to, and they’re interested in that format because it’s very convenient.”

The future of functional hydration

Glanbia Nutritionals stresses that though enhanced waters, electrolyte drinks, and innovative sports beverages are gaining momentum, the proactive hydration trend is set to transform the beverage industry. Moreover, brands that prioritize hydration-focused formulations with added health benefits will be well-positioned to succeed in this rapidly growing market.

“I think with proactive hydration, consumers are thinking more about what they need, and they’re looking specifically for benefits and the ingredients associated with that benefit,” says Stone. “They’re being much more mindful of their choices, and they’re looking beyond traditional sports drinks and sports replenishment drinks.”

“Our view is there’s room for both in the market. There’s no doubt about that — traditional sports drinks aren’t going away anytime soon.”

“I think that’s where we’re going to be placing more of our bets is to lead in the proactive hydration space. We understand and follow what the end users are doing, and give better nutrition options with a range of formats, and then, of course, layering in that flavor. That’s where that fusion of form, function and flavor really comes together,” Stone concludes.