PepsiCo Expands Gatorade Line to Target Non-Athlete Hydration Market

PepsiCo announced on Thursday that Gatorade is expanding its reach beyond athletes to consumers seeking hydration for activities such as long flights, walks, or hangovers. The company plans to clearly label products that it says hydrate better or faster than water, responding to growing interest in functional hydration ingredients.

A new drink, Gatorade Longer Lasting, which will go on sale next year, blends glycerin and electrolytes to help the body stay hydrated for longer than water alone.

Additionally, Gatorade recently launched Gatorade Lower Sugar last month, which has 75 per cent less sugar, and has removed artificial colors from its product lineup. The new packaging highlights specific ways Gatorade drinks and powders work and the scientific research behind them.

Unit sales of sports drink mixes, like powders from Liquid I.V., Skratch Labs and Gatorade, rose nearly 20 per cent in the year ending March 22, according to Circana, a market research company.

Meanwhile, bottled water sales remained flat during the same period. Jack Doggett of Mintel reported that 60 percent of consumers purchasing sports drinks are not athletes but seek functional ingredients like electrolytes for hydration and carbohydrates for energy.

PepsiCo's Mike Del Pozzo noted that 150 new brands have entered the sports and hydration space in recent years, intensifying competition.

Gatorade's origins date back to 1965 when Dr. Robert Cade, a University of Florida physician, developed the drink to help football players replace electrolytes lost through sweat. The formula includes salt to replace electrolytes, sugar for energy, and lemon juice for flavor.

Quaker Oats acquired Gatorade's parent company in 1983 and established the Gatorade Sports Science Institute in 1985. PepsiCo became Gatorade's owner in 2000. Competitors have also adapted to the expanding market.