Celsius, the #3 energy drink brand in the U.S. and the leader in the energy powder category, has won the Product Launches award in the 2025 Just Drinks Excellence Awards for its introduction of CELSIUS HYDRATION™ powder sticks.
The Just Drinks Excellence Awards honor the most significant achievements and innovations in the beverages industry. Powered by GlobalData’s business intelligence, the Awards recognize the people and companies leading positive change and shaping the future of the industry.
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Celsius won the award in the Functional Hydration category for introducing a new product line, CELSIUS HYDRATION™, that addresses emerging consumer needs and strengthens its position in the functional beverage market.
Strategic entry into the expanding hydration market
Celsius’ entry into the $1.4 billion U.S. hydration powder market with CELSIUS HYDRATION™ represents a calculated expansion that leverages both market opportunity and the company’s established brand presence. The hydration powder segment is experiencing rapid growth, with a projected 13% compound annual growth rate through 2029, signaling strong and sustained demand for convenient, functional hydration solutions. By launching CELSIUS HYDRATION™, Celsius is not only diversifying its product offerings but also positioning itself to capture a share of this high-growth segment.
This move is particularly significant as it allows Celsius to broaden its reach beyond the core energy drink consumer base. Traditionally, Celsius has been associated with energy and performance beverages, but the introduction of a hydration-focused product line enables the brand to engage with consumers who prioritize hydration and wellness, including fitness enthusiasts and everyday individuals seeking hydration support. CELSIUS HYDRATION’s™ powder stick format further enhances its appeal by offering portability and ease of use, making it suitable for on-the-go lifestyles and a variety of consumption occasions, from workouts to daily routines.
Functional hydration innovation: Health, taste, and brand trust
CELSIUS HYDRATION™ distinguishes itself in the functional beverage market through its focus on wellness-oriented, innovative formulation and consumer-centric features. The product is caffeine-free and contains zero sugar, addressing the needs of consumers who are increasingly mindful of sugar consumption. This positions CELSIUS HYDRATION™ as a viable option for a wider audience looking for zero sugar, fruit-forward hydration solutions.
Each powder stick is formulated with a blend of essential electrolytes, along with B vitamins, supporting hydration and overall wellness. These ingredients are carefully selected to replenish nutrients lost during physical activity or daily exertion, aligning with the growing consumer demand for products that deliver tangible functional benefits.
Flavor innovation is another area where CELSIUS HYDRATION™ excels. The product line features five fruit-forward flavors, namely Fruit Punch, Blue Razz, Strawberry Watermelon, Arctic Cherry, and Lemon Lime, all designed to deliver a refreshing and enjoyable taste experience. This variety not only caters to diverse palates but also encourages repeat purchases and trial across the range. By offering flavors reminiscent of its popular energy drinks, Celsius leverages existing consumer familiarity while introducing a new, caffeine-free consumption occasion.
Portfolio alignment and consumer engagement
The introduction of CELSIUS HYDRATION™ is strategically aligned with the company’s broader portfolio of zero-sugar beverages. This alignment allows Celsius to create synergies across its product lines, enabling effective cross-promotion and maximizing consumer engagement. For example, the company plans to feature CELSIUS HYDRATION™ alongside its energy drinks during key industry events, such as the CELSIUS Essential Vibes Tour™, which provides opportunities to introduce the new product to a broad audience and reinforce brand loyalty.
By expanding into functional hydration, Celsius is able to introduce hydration as a distinct consumption occasion, complementing the energy and performance positioning of its core products. This not only increases the frequency of consumer interactions with the brand but also broadens the range of use cases, from pre- and post-workout hydration to everyday wellness routines. The powder stick format further supports this strategy by offering a convenient, portable solution that fits seamlessly into consumers’ active lifestyles.
Celsius’ focus on functional ingredients in its new hydration line reinforces its commitment to wellness and performance, which are central to the brand’s identity. By responding to evolving consumer preferences and delivering innovative hydration solutions, Celsius demonstrates a clear understanding of market trends and positions itself as a versatile leader in the functional beverage industry. This approach not only strengthens the company’s competitive position but also supports long-term growth by attracting a diverse and expanding consumer base.
“This recognition is a testament to our focus on meaningful innovation and our commitment to creating a portfolio of functional products that fuel a LIVE FIT™ lifestyle across a variety of occasions. Our CELSIUS HYDRATION™ line of electrolyte-based powder sticks complements our portfolio of functional beverages, offering zero sugar, B vitamins, essential electrolytes and the refreshing, fruit-forward taste our consumers know and love. As a pioneer in the functional beverage space and a brand that champions the LIVE. FIT. GO.™ lifestyle, we’ll continue to push the boundaries of what it means to inspire and support individuals in everything they do.”
– Kyle Watson, Chief Marketing Officer, Celsius
Company Profile
Celsius is a global consumer packaged goods company specializing in functional beverages, specifically CELSIUS® energy drinks and CELSIUS HYDRATION™ powder sticks. Celsius positions itself as a lifestyle brand, aligning with active individuals who prioritize wellness and peak performance. The company’s products are marketed as a better-for-you alternative to traditional high sugar beverages, with fruit-forward flavors that contain ingredients like Vitamin B and C, and zero sugar, providing sustained energy without artificial flavors or preservatives.
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Website: https://www.CELSIUS.com/
