PepsiCo pivots Gatorade toward non-athletes as wellness drink sales surge

PepsiCo said Thursday that Gatorade, the 61-year-old sports drink it owns, is pivoting away from its core athletic identity to target everyday consumers seeking hydration benefits such as electrolyte replacement. The announcement came as unit sales of sports drink mixes rose nearly 20 percent in the year ending March 22, according to market research firm Circana, while bottled water sales were flat in the same period. New product packaging will highlight the science behind Gatorade’s lineup, and a new drink blending glycerin and electrolytes is planned for release in 2027.

The shift reflects a broader race among beverage makers to capture spending on health-oriented drinks, with roughly 150 new brands entering the hydration market in recent years and rivals including Powerade and Liquid I.V. already reorienting their products toward wellness-focused non-athletes.

PepsiCo said Thursday that Gatorade, the sports drink it has owned since acquiring Quaker Oats in 2000, is rebranding to broaden its appeal beyond competitive athletes to everyday consumers seeking hydration benefits. New packaging will highlight the science behind Gatorade’s products, and the company plans to clearly label drinks it says can hydrate better or faster than water.

The shift comes as unit sales of sports drink mixes rose nearly 20 percent in the year ending March 22, according to market research firm Circana. Bottled water sales were flat in the same period.

A crowded market

Mike Del Pozzo, president of U.S. beverages at PepsiCo, said roughly 150 new brands have entered the sports and hydration drink space in recent years, intensifying pressure on established players.

“That puts a lot of risk on the category and pressure from a credibility perspective,” Del Pozzo said. “Some that are coming in are building on the science that we created. And we’re like, ‘Well, geez, we should be doing that. We should be talking more overtly about the science and the business and why we believe we’re future-forward.’”

Jack Doggett, a food and drink analyst with the consulting firm Mintel, said his research indicates 60 percent of consumers who buy sports drinks are not athletes but want the functional ingredients those drinks provide, such as electrolytes for hydration and carbohydrates for energy.

“People are using these drinks more for wellness and daily maintenance,” Doggett said. “It’s easy to say that the wellness consumer is the young consumer, but older generations are also drinking these drinks for hydration.”

New products

PepsiCo said a new drink, Gatorade Longer Lasting, will blend glycerin and electrolytes to help the body stay hydrated for longer than water alone. The product is planned for sale in 2027.

Gatorade Lower Sugar, which launched in March 2026 and contains 75 percent less sugar than the standard formula, is among the company’s biggest sellers in recent history, Del Pozzo said. The company has also removed artificial colors from its lineup, a change it says is drawing new customers to the brand.

The standard Gatorade Thirst Quencher, aimed at athletes, contains 48 grams of sugar and 18 percent of the recommended daily carbohydrate amount. Del Pozzo said the product will remain in the lineup to serve athletes’ energy needs.

Rivals have moved first

PepsiCo’s pivot mirrors moves already made by competitors. Powerade, the sports drink owned by Coca-Cola, received brighter packaging in 2023 promoting an increase in electrolytes, then began selling Power Water — a zero-sugar, electrolyte-enhanced drink aimed at non-athletes — in fall 2025.

Liquid I.V., founded as a sports drink mix in 2012, was acquired by Unilever in 2020 and has repositioned itself as a wellness and hydration brand. LMNT introduced a smaller, 12-ounce sparkling electrolyte drink aimed at non-athletes in fall 2025.

Sean Harapko, a beverage sector leader with Ernst & Young Americas, said consumers face so many beverage choices that companies must clearly define their products and explain why a consumer should choose one over another.

Experts note limits of broad hydration claims

Not everyone views the expanded pitch as straightforward. Travis Masterson, an assistant professor at Pennsylvania State University’s College of Health and Human Development, said the average non-athlete gets the sodium they need from food.

“Gatorade 100% has a place, but is it going to be necessary for everybody? Do you need to hydrate faster or longer?” Masterson said. “The average person doesn’t need all the extra stuff.”

Del Pozzo said PepsiCo believes the need is more widespread than many consumers realize.

“I think there were people that said, ‘I didn’t exercise or I’m not out in the heat or I am not sweating,’” Del Pozzo said. “The reality is, everybody is sweating and dehydrated from the moment they wake up and many just don’t know it.”

Gatorade’s origins

Gatorade was created in 1965 after the football coach at the University of Florida asked Dr. Robert Cade, a physician and professor at the school, why players were losing weight during games without urinating. Cade determined the players were sweating out electrolytes — minerals including sodium, potassium and magnesium — and disrupting the body’s chemical balance.

Cade formulated a drink containing salt to replace electrolytes, sugar for energy and lemon juice for flavor. Quaker Oats acquired Gatorade’s parent company in 1983 and established the Gatorade Sports Science Institute two years later. PepsiCo became the brand’s owner when it purchased Quaker Oats in 2000.