The TV show “America’s Got Talent” is a competition that follows participants with varying skills — like singing, dancing, comedy and magic. The participants must impress a panel of judges and eventually work to earn public votes. How well participants do in the competition is based entirely on their performance.

Similarly, the performance of products within the beverage industry depends on how well they are received by consumers.

Claudia Kajanoja, co-founder of Nordic Tree Water, West Palm Beach, Fla., shares her observations on the plant water category’s performance in the past year.

“Plant-based beverages, like birch sap, coconut water and watermelon water keep increasing in sales year after year, with a very strong forecast,” she says. “Consumers are moving away from sodas and unhealthy products and also looking for more functional beverages, antioxidants, minerals, prebiotics and other added benefits.”

Coconut water has been dominating the market, Kajanoja notes, but she thinks the market has become saturated with too many offerings of the same coconut products, thus creating better demand for high quality, new sources of plant-based beverages.

Roger Dilworth, senior analyst at Wintersville, Ohio-based Beverage Marketing Corporation (BMC), states that the plant water category increased by about 15% in both volume and retail dollars in 2024, with coconut water “providing around 95% of the incremental growth.”

In a July 2024 report from BMC, titled “Coconut, Aloe & Other Plant-Based Beverages in the U.S.,” the company explains how coconut water has become popularized.

“A surprising success of beverage entrepreneurs in the new millennium has been the mainstreaming of coconut water, an ancient staple that is a commodity most everywhere else in the world, but which reached a broad new audience when it was put into more upscale, non-ethnic packages and pitched as an all-natural sports drink that is rich in electrolytes but lower in the sugar and other liabilities that have caused some consumers to shy away from brands like Gatorade,” it states.

Mitch Madoff, head of retail strategy at Keychain, New York, says plant waters have had a strong run in the past year, especially with consumers’ increased focus on their overall health and wellness.

“Keychain data shows that coconut-based beverages lead the category, with brands like Vita Coco, Real Coco and Harmless Harvest reporting high growth rates,” he shares. “Aloe Vera drinks, like Parrot, for example, are also on the rise.”

Today’s consumers actively are seeking natural and functional hydration solutions, Madoff states. They are seeking the wellness perks paired with products that taste good.

“Clean labels, real benefits and a little innovation go a long way, especially with Gen Z’s emphasis on sustainability and healthy living,” he says. “The brands that stay ahead of these trends and move quickly are the ones that’ll come out on top.”

Nordic Tree Water’s Kajanoja notes how plant-based diet trends have influenced the plant waters market.

“We believe plant-based waters are enjoyed by everyone, regardless of their diets,” she says. “Of course, vegetarian and vegan diets create more popularity and create a positive impact on healthy living. We believe the main driving force is demand and awareness of healthy, functional and sustainable waters.

“Our goal is to focus more on the health and environmental aspects,” Kajanoja continues. “For example, our product is unique and certified organic and regenerative.”

Nordic Tree Water, a product of Finnish Birch sap, notes on its website that the product is harvested sustainably from Finland’s cleanest forests, packaged in sustainable cartons from Tetra Pak and is made in a “solar-powered, eco-conscious building.”

Kajanoja says that, while coconut water earns billions in sales each year, she estimates that birch sap could grow into $100 million in sales by 2030.

“Birch sap is a new product and needs recognition to be widely known,” Kajanoja notes. “Coconut water will dominate mainstream plant-based sales, but we believe birch sap is leading in health benefits and environmental impact. We can expect conscious consumers easily switching to birch sap.”

Nordic Tree Water’s offerings include Natural, Immunity, Energy and Sport varieties.

Meanwhile, BMC’s Dilworth shares his thoughts.

“There has never been that much correlation between plant-based foods and plant waters, given that most beverages are, by default, vegan-friendly,” he says. “This has especially been the case recently, where plant-based foods have struggled and plant waters, particularly coconut water, have flourished.”

However, Keychain’s Madoff feels differently, noting that plant-based diet trends are “absolutely” boosting the performance of plant waters.

“As more people lean into a cleaner, more natural lifestyle, they’re moving away from synthetic or sugar-heavy drinks and instead choosing options that feel functional, transparent and better for their bodies,” he says. “Plant waters hit that sweet spot — minimally processed, naturally hydrating and aligned with wellness goals. We’re seeing that reflected in the growth of brands like Vita Coco and Harmless Harvest.”

Social media is playing a big role as well, Madoff adds.

“‘What I eat in a day’ videos and wellness creators are putting these products front and center, making plant waters part of the aspirational health routines people want to emulate,” he says.

As for other plant water segments, while not yet at the scale of coconut water, Madoff points to aloe and cactus as “gaining traction” in the category.

“On the Keychain platform, we’re seeing strong momentum for Parrot’s Aloe Vera drinks, as well as rising interest in brands like True Nopal (cactus water) and Treo (birch water),” he shares. “Cactus water is only recently coming into the scene, but it’s reaching consumers through its low sugar and antioxidant-rich blend. It’s also linked to hydration and skin health, giving it a major advantage as many people prioritize a youthful, glowy appearance.”

With the right innovation and consumer education, Madoff feels that these segments could become the next breakout stars.

Planning for a plant-based future

Hybrid beverage trends also have contributed to the adoption of plant waters.

“There has been some positive effect from other categories using coconut water in their formulations,” BMC’s Dilworth states. “BodyArmor is the prime example of this. Also, coconut water is classified as a juice under the FDA’s definition and thus, adding coconut water to fruit juices reduces the overall calorie count, but with the benefit of still being classified as a 100% juice.”

Nordic Tree Water’s Kajanoja says that green tea or other plant-based protein drinks each have their uses, but “there’s enough room for” all hybrid products.

Keychain’s Madoff observes that hybrid beverage trends are accelerating the adoption of plant waters in a big way.

“Today’s consumers aren’t just looking for hydration — they want drinks that support energy, skin health and overall wellness,” he says. “That’s why plant waters are gaining traction: they offer clean-label simplicity with functional perks, all without the sugar or additives of traditional options. We’re also seeing more people go ‘sober curious,’ experimenting with plant waters in mocktails and daily wellness routines.”

Madoff notes that brands are leaning into this shift and positioning plant waters not just as thirst-quenchers, but as versatile, functional beverages that fit into a broader lifestyle movement.

In terms of the future of plant waters, BMC’s Dilworth anticipates the category to end 2025 with low double-digit growth in volume and retail dollar sales, with a compound annual growth rate (CAGR) being within the 6-7% range between 2024 and 2029 for both volume and retail dollars.

“The main reason for coconut water’s viability appears to be its potassium content,” he says. “Supplements of potassium are limited to 99 milligrams per capsule, whereas the recommended daily intake of potassium is about 4 grams. There are only so many bananas one can eat, thus making coconut water a viable option.”

Other plant waters do not seem to have a comparable advantage, Dilworth adds.

BMC’s plant-based water report notes that the market would continue to be “fueled by the striving for wellness and need for functionality,” and that most of the increase is expected to come from coconut water.

Based on what Keychain has seen, Madoff expects the plant water market to be set for continued growth.

“As a category, they’ve clearly found product-market fit, with leading brands scaling quickly and smaller ones innovating to stand out in their own ways,” he shares. “We’ll likely see more premium offerings, clearer functional benefits and better storytelling, especially in relation to ingredient sourcing sustainability. As plant-based lifestyles continue to go mainstream, plant waters are well-positioned to become a daily habit for a much broader audience.”

The brands that can balance innovation with authenticity will shape the next wave of growth for this segment, Madoff notes.

Nordic Tree Water’s Kajanoja concludes, “The future is very thirsty for plant-based waters that are delicious and provide healthy hydration.”