Unilever is set to introduce Liquid IV, its largest global brand in the health and wellbeing sector, into the Indian market. This hydration drink will compete directly with established energy and sports drinks such as Prime (backed by KSI & Logan Paul), Red Bull, and Gatorade. The move is part of Hindustan Unilever’s (HUL) broader strategy to expand the share of its premium product portfolio within the beauty and wellbeing segment, which is currently the company’s most profitable division.
Harman Dhillon, Executive Director of Beauty and Wellbeing at HUL, told the Press, “A significant portion of our portfolio consists of core or mass-market products that already have high penetration. Our aim is to shift the portfolio by 900 basis points towards premium offerings from where we stand today.” She further explained that HUL has identified product formats with relatively low penetration but rapid adoption rates. These are areas where consumers are increasingly willing to spend more, including the masstige segment—a category that bridges mass and prestige pricing, offering an attractive market opportunity.
Unilever acquired Liquid IV in 2020, and since then, the brand’s growth has quadrupled, making it the leading powdered hydration brand in the United States. It has also been launched in key international markets, including the United Kingdom, China, Canada, Australia, Mexico, and the Netherlands. In India, the hydration drink market is valued at approximately $1 billion annually but remains largely concentrated in urban areas. HUL has identified a gap in the premium segment, particularly in beauty and wellness, targeting nearly 70 million affluent and super-affluent households across India.
“Wellbeing and hydration are becoming increasingly critical as they have a direct impact on how one looks and feels. Liquid IV is primarily aimed at the affluent and super-affluent consumer base, particularly those aged 18 to 45 who travel frequently, lead an active lifestyle, and engage in sports. This demographic is highly conscious of the impact of their diet on their appearance and overall health,” Dhillon added. According to Euromonitor, the Indian nutraceuticals market is currently worth ₹47,000 crore, with fortified and functional food products accounting for half of the segment, followed by dietary supplements making up a quarter.
Mainstream fast-moving consumer goods (FMCG) companies have increasingly entered this space, particularly within the functional food category. In 2023, HUL invested in Zywie Ventures, which owns the plant-based supplement brand Oziva, and Nutritionalab, which offers health products under the Wellbeing brand, strengthening its presence in the ₹30,000 crore health and wellness market. Last week, the company further expanded its portfolio by acquiring direct-to-consumer beauty brand Minimalist for ₹2,955 crore. “Beauty and wellbeing are intrinsically connected, as consumers—particularly those in the affluent segment—are becoming more aware that what they consume directly affects the health of their skin and hair. Hydration has now become a crucial aspect of this equation. Across skincare and haircare trends, as well as in new consumer-packaged goods, hydration is emerging as a dominant theme,” Dhillon observed. To sharpen its focus, HUL restructured its Beauty and Personal Care (BPC) division in April last year, forming a dedicated Beauty and Wellbeing unit. This division now accounts for nearly 20% of the company’s sales and contributes around one-third of its overall profits.
With inputs from agencies
Image Source: Multiple agencies
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