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Here’s everything to know about the rise of alkaline CBD water in the market today

Bottled water is the rapidly growing category in the beverage space. After all, big names have jumped into the bottled water segment in recent years. Nestle Waters, The Coca-Cola Company, Mountain Valley Spring Company, Group Danone, and PepsiCo Inc. have all strategically positioned themselves in the market.

A seven-year forecast of the global bottled water market from the Transparency Market Research suggested that the beverage category will continue to grow. The report estimated that the market valuation of bottled water could reach $307.2 billion in 2024 from $198.5 billion in 2017. By the end of 2024, the report predicted that the demand for bottled water will reach 528.2 billion liters in terms of volumes.

Now, while hungry investors are thinking about the possibility of that market, there is another segment in the beverage category that is increasingly catching up — alkaline water. Market observers pegged alkaline water to reach more than $200 million in annual revenues.

To understand the potential of the cannabidiol-infused (CBD) bottled water category, one has to understand how the bottled water segment evolved to what it has come today.

The rise of the bottled water market

The year also saw sales of soda declining to 1.5 percent, the lowest level per capita since 1985.

In 2016, BMC said consumption of bottled water rose 9 percent or 12.8 billion gallons already. That translated to 39 gallons of bottled water per person.

By 2017, consumption levels were already at 13.7 billion gallons, a 7 percent increase to the volume sales from the previous year. Water consumption per capita was more than 42 gallons. This translated to sales of $18.5 billion. BMC predicted that consumption per capita will reach 58 gallons in the coming years.

A key driver to the significant shift from soda to bottled water is the people’s growing preference for a healthier lifestyle. More people have been educated about the dangers of consuming sugary drinks, particularly diabetes and obesity.

The above figures show how “health” could drive dramatic growth to a product segment. That being said, health is also the driving force behind more people seeking to buy alkaline water.

The rise of alkaline water

Alkaline water boasts of a higher pH level than the regular water. According to health experts, alkaline water can balance the acid inside the body. It can boost the immune system, making the body resilient against stress and other toxins.

The most convincing examples of alkaline water’s market viability are the Essentia Water and The Alkaline Water Co. (NASDAQ:WTER) (CSE:WTER).

Essentia said that its proprietary ionization process removes acidic ions, making its products of alkaline quality. In June this year, the company hired Credit Suisse to led the sale of the company. The company could attract interest from companies as big as Nestle, Danone, PepsiCo, and AB InBev, according to CNBC, citing people familiar with the deal.

Essentia was estimated at the time to have around $100 million in annual sales. According to CNBC, companies with similar revenue are often bought at four to six times more that amount.

The Alkaline Water Co., with its flagship product Alkaline88, is currently one of the largest alkaline water companies.

Alkaline88 is bottled alkaline drinking water, enhanced with Himalayan pink rock salt. It is currently available in the 500-milliliter package, 700-milliliter, 1-liter, 1.5-liter, 3-liter and 1-gallon sizes across retailers in all 50 states. Retailers include big names in the industry such as Safeway/Albertsons, Walmart, Kroger, CVS, and other local supermarket chains.

On Dec. 13, the company announced that it entered a new co-packing agreement with World Choice Bottling Inc. which will supply Alkaline88 across Canada and into fast-growing Asian markets, especially in China where the population is currently about 1.38 billion.

The emergence of the alkaline CBD water

CBD is said to be an effective relief for insomnia, anxiety, spasticity, chronic pain, and epilepsy. It is also said to be an effective muscle relaxant and reduce symptoms of Parkinson’s disease and the list could go on.

In September, The Alkaline Water Co. announced its Hemp-derived CBD infused Alakaline88 water. Since its announcement, shares of the company rose almost 50 percent, according to Bloomberg. The company had since been exploring other flavored versions along with other CBD-infused variants.

“Do I just want to be a CBD player in the dispensary market? Absolutely not, I want to be a CBD player in the supermarket places, which we already dominate, and then branch out into more mainstream from there,” Aaron Keay, chairman of The Alkaline Water Co., told Bloomberg in an interview.

Keay projected at the time that a quarter of the company’s sales could come from its Alkaline CBD water products. The company reported nearly $20 million in revenue in its latest fiscal year, and Keay was optimistic they can grow that figure to $100 million in the future.

The company’s foray into the CBD-infused beverage segment could not come in the most opportune time.

On Dec 13, the U.S. passed the Agriculture Improvement Act of 2018 or the “Farm Bill” which legalize marijuana on a national level.

“As local and state legislatures, as well as the U.S. Food and Drug Administration (FDA), finalize their regulations for hemp, we are well-positioned to launch our great tasting Alkaline88® infused with natural hemp-extract formulations to become a dominant brand in this beverage category,” Ricky Wright, president, and CEO of The Alkaline Water Co., said in a statement welcoming the passing of the bill.

The Alkaline Water Co. is not the only one which saw the market potential of CBD-infused water. Early into the year, New Age Beverages (NASDAQ:NBEV) announced its plans to develop and distribute Bob Marley-branded CBD-infused drinks, in partnership with the late singer’s estate.

Would you bet on alkaline CBD water?

While companies such as The Alkaline Water Co. may somewhat be little-known among investors, previous market trends suggest that it won’t take long before bigger players set eyes to market disruptors.

When PepsiCo said in October that it has no plan of pursuing cannabis-related products, the company immediately felt the effect when its shares took a hit. Coca-Cola Co., on the other hand, was quick to embrace the possibility.

“All of those guys are coming in it, it’s just going to be a matter of when and how do they do it,” Keay told Bloomberg.

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Here’s everything to know about the rise of alkaline CBD water in the market today was originally published in Marketing And Growth Hacking on Medium, where people are continuing the conversation by highlighting and responding to this story.

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