Sparkling Water Startups

How to Create a Sparkling Water Drink

Sparkling water drinks have become one of the fastest-growing segments in the beverage industry. For entrepreneurs new to beverage manufacturing, they offer a relatively simple entry point compared to sugary sodas or complex functional drinks. This segment of the beverage industry is valued at more than $25 Billion, and is expected to grow beyond $50 Billion in the next few years. This growth trend is attributed to an increase in healthy lifestyles globally, with particular growth amongst health conscious Gen Z and millennials.

Most sparkling water startups rely on a co-packer or contract manufacturer to create their beverage, rather than producing the drink themselves. If you’re thinking about starting a new sparkling water brand, here are a few tips to help you get started.

What are Sparkling Water Drinks?

Sparkling water drinks (also known as carbonated water, fizzy water, or seltzer) are essentially water infused with carbon dioxide (CO₂) under pressure. This infusion creates bubbles and effervescence. Many commercial beverages add flavors, minerals, or functional ingredients to sparkling water to create new, marketable drinks.

Carbonated water offers the same health benefits as drinking plain water, however many flavored sparkling water drinks contain fewer calories, added sugars, artificial sweeteners, and additives that are common in soda. By using natural flavors, minerals, and functional ingredients, sparkling water brands can appeal to more broad health trends. There are a few types of sparkling water, and sometimes the terms are misued and/or interchanged. Be aware:

  • Plain sparkling water: just CO₂ and water
  • Mineral or naturally carbonated water: sourced with inherent minerals
  • Flavored or functional sparkling water: includes natural flavor,  electrolytes, vitamins, etc.

We will focus on flavored drinks, which are trending in premium beverage segments.

Where to Start

If you’re an entrepreneur new to the beverage industry here are the essential steps to create a sparkling water brand:

  • Define Your Concept
    Consumer Niche – Organic, health conscious, sports oriented, etc.
    Functional Benefits – Vitamins, electrolytes, etc.
    Brand Identity – Audience appeal and general vibe.
  • Develop Your Drink Formula
    Develop – Collaborate with a beverage formulator to develop a flavor.
    Test – Pilot test small batches before scaling.
  • Production
    Beverage Partner – Contract a co-packer like Bev-Hub for beverage production.
    Compliance – Work with your co-packer to ensure food safety, labeling, and regulatory requirement are met.
  • Marketing
    Packaging – Design packaging that communicates to your audience.
    Marketing Plan – Determine advertising mediums that will reach your audience, create a thorough plan.
  • Distribution & Sales
    Distributors – Connect with area beverage distributors or wholesalers.
    Direct Sales – Consider online sales and direct B2B sales.

Private Label Opportunities

Launching a sparkling water startup doesn’t come without risks, but it is a high demand market that is expect to grow. Because this cetegory of drinks is less complex, and uses fewer ingredients, they provide a aster path from concept to shelf.

Success in the beverage industry requires a solid foundation that includes a quality beverage formulation, an understanding of the market and the ability to brand a new product in a crowded landscape, and a trustworthy co-packing partner. If you’d like to learn more about how Bev-Hub can help, get in touch today.