Unilever’s Liquid I.V. Drives Strong Hydration Market Growth

Unilever’s push into the Australian hydration market with Liquid I.V. is exceeding expectations, driving a 20% increase in rehydration sales at a major pharmacy retailer. The electrolyte powder brand is outperforming projected growth by 27%, with the company predicting strong double-digit growth in the coming years. However, competition from established hydration and sports drink brands could challenge its momentum.

Liquid I.V. launched in Australia exclusively through a major retail pharmacy chain, positioning itself as an everyday hydration solution rather than a sports supplement. Unilever has focused on awareness rather than category education since Australian consumers are already familiar with electrolytes and dehydration solutions. With additional support from Costco, the brand has gained a significant foothold in the market.

The hydration category is already competitive, including brands like Hydralite, Voost and various electrolyte drinks. Liquid I.V. differentiates itself by appealing to consumers focused on daily wellness rather than just athletic performance. Research indicates that while 97% of Australians recognise the importance of hydration, over 70% regularly experience dehydration, presenting an opportunity for ongoing consumer conversion.

To build awareness, Liquid I.V. has invested in social media, influencer campaigns and real-life activations. The brand has partnered with music festivals and events where dehydration is a common concern, positioning itself as a practical solution for attendees. A standout activation this year saw Liquid I.V. become the official hydration partner of Bondi Beach, hosting branded events and earning naming rights for a summer festival.

Looking forward, Unilever plans to keep Liquid I.V. as its priority within its Wellbeing Collective portfolio, which includes other lifestyle-focused health brands. While the company is exploring global expansion, its primary focus remains on scaling Liquid I.V.’s success in Australia. With the hydration market booming, Unilever seems well-positioned to sustain high growth in the space.

Source: The Australian, InsideFmcg, Unilever