HUL introduces Liquid IV to challenge energy drink giants

Hindustan Unilever (HUL) is making a significant foray into the hydration market with the launch of Liquid IV in India, aiming to compete with established players like Red Bull, Gatorade, and Logan Paul’s Prime. This move aligns with HUL’s broader strategy to expand its premium product portfolio within the beauty and wellbeing segment, which remains its most profitable division.

As part of its long-term vision, HUL is focused on shifting its product mix toward premium offerings, increasing the share of high-end products by 900 basis points. The company is targeting categories with lower penetration but high consumer demand, particularly within the masstige segment, which bridges mass-market affordability with prestige pricing.

Global Success and Indian Market Potential

Liquid IV, acquired by Unilever in 2020, has rapidly become the leading powdered hydration brand in the U.S. and has expanded into key markets such as the UK, China, Canada, Australia, Mexico, and the Netherlands. India’s hydration market, valued at nearly $1 billion annually, remains largely urban-focused, but HUL sees an opportunity in the premium space, catering to around 70 million affluent and super-affluent households.

Targeting the Health-Conscious Consumer

With hydration increasingly linked to overall wellness, HUL is positioning Liquid IV for urban consumers aged 18-45 who maintain active lifestyles, travel frequently, and prioritize health-conscious choices. The Indian nutraceuticals market, currently worth ₹47,000 crore, has seen rapid growth, particularly in fortified and functional foods, further supporting HUL’s entry into this space.
Strengthening the Health and Wellbeing Segment

The Indian nutraceuticals market, currently valued at ₹47,000 crore, has seen increased participation from mainstream fast-moving consumer goods (FMCG) companies, especially in the functional food category. HUL has been aggressively expanding its presence in the functional food and nutrition category. The company has made strategic investments in plant-based supplement brand Oziva and nutritional product-focused Nutritionalab, reinforcing its commitment to the ₹30,000 crore health and wellness segment. Additionally, HUL’s recent ₹2,955 crore acquisition of direct-to-consumer beauty brand Minimalist underscores its push toward high-growth categories.

Recognizing hydration as a key factor influencing skin and hair health, HUL has integrated it as a central theme across its skincare, haircare, and functional food lines. To enhance its focus, the company restructured its Beauty and Personal Care (BPC) division in April 2023, forming a dedicated Beauty and Wellbeing unit, which now accounts for nearly 20% of its sales and a third of its profits.

With the introduction of Liquid IV, HUL is poised to redefine India’s hydration market, leveraging its brand trust, premium positioning, and market expertise to challenge global giants in the segment.