While coconut water is slowing down, other tree water options (birch, maple) are gaining traction, alongside cold-pressed juices and fitness-focused sports drinks.
Beverages has been a hot area for investment and acquisitions in the CPG space. The past couple years have seen exits by several major players, including Dr Pepper Snapple Group’s acquisition of Bai Brands in Q4’16, PepsiCo’s acquisition of kombucha brand KeVita in Q4’16, New Age Beverages’ acquisition of coconut water startup Coco Libre in Q2’17, and AB InBev’s acquisition of organic energy drink startup Hiball in Q3’17.
As corporate leaders pay increased attention to startups, a number of trends have emerged in the beverages space. For example, in the coconut water sector (which emerged as a hot category just a few years ago), many leading startups have been acquired, and fewer new ones are launching as the sector matures.
In another notable trend, beverages that use plant-based ingredients and promise long-term health benefits are taking off. Many startups focused on sports/energy drinks, such as Mati Energy, include antioxidants and vitamins in their products. Another high-momentum player, REBBL, uses ingredients like turmeric, matcha, coconut, and reishi mixed in with its bottled teas and cold brew coffees.
Using CB Insights data, we mapped 80+ private beverage startups that have raised external funding since 2016. See the graphic and full list of companies below.
This market map is not meant to be exhaustive of companies in the space. Please click to enlarge.