Gatorade Goes Low Sugar, Tapping Into A Booming Market

As the functional-drink market booms, legacy brands like Gatorade are unveiling drinks that appeal to consumers seeking lower-sugar, minimally processed options

Gatorade is the latest — and perhaps the biggest — brand to lean into growing consumer demand for better-for-you drinks.

The sports drink giant’s Gatorade Low Sugar option is now rolling out in stores nationwide in four flavors: Fruit Punch, Lemonade, Glacier Cherry and Rain Berry, available in 28-fl. oz, 20-fl. oz, and 12-fl. oz sizes.

The new product contains 75% less sugar than the brand’s classic Thirst Quencher drink and no artificial flavors, sweeteners or colors, appealing to consumers increasingly lashing out against dyes and less-natural ingredients.

The launch is marked by a campaign featuring WNBA All-Star Caitlin Clark, as well as athletes from other disciplines including pro cheerleader Charly Barby and professional dancer Witney Carson.

With a commercial narrated by former WNBA star Candace Parker, the campaign builds on Gatorade’s “Is It In You?” tagline, highlighting the moments outside of competition that demand more robust hydration than water.

Gatorade Enters New, More Natural Era of Hydration

With the functional beverage market projected to reach nearly $316 billion by 2033, Gatorade joins an industry filled with beverages promoting a variety of health benefits, including higher protein, higher fiber or adaptogenic properties that could help reduce stress or provide better focus and energy — without having to worry about too many additives or a high sugar content.

Kim Kardashian recently joined Update as a co-founder and collaborator. The brand offers a paraxanthine-based formula that Update says allows for a more stable and controlled energy without the crash and jitters.

Meanwhile, Aqua Theon, a Los Angeles-based seaweed technology company, just closed a $13 million seed round, including a $5 million extension for its fruit-forward functional beverage brand OoMee. The drinks are based around red algae-derived agar-agar, a gelling agent that is linked to benefits ranging from digestive health and weight management to bone and brain health, and is rich in minerals.

Even Beyond Meat, a brand not known for drinks, recently took a risk with the launch of its new drink line, Beyond Immerse. The functional sparkling beverages hit three major birds with one stone: they feature 10 or 20 grams of protein and seven grams of fiber, playing into the high-protein and “fibermaxxing” nutrition trends of the moment, within the healthy drink package.

Even THC drinks are getting in on the trend, with Tampa Bay THC seltzer startup Last Rep making its way to CrossFit shelves in an effort to be seen as an effective post-workout recovery beverage.

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