Branding / Jan 12, 2025

The Rise of Seltzer: How Brands Bubbled Up to the Top in a Crowded Market

Kyle Duford

Partner/ECD

Once a humble alternative to soda, seltzer water has transformed into a full-fledged cultural and commercial phenomenon. From classic sparkling water brands to functional beverages and hard seltzers, the category has exploded, proving that market trends evolve not just through demand, but through smart branding and audience segmentation.

This is how markets grow: Starting with necessity, evolving through trend adoption, and then fragmenting into sub-markets that cater to specific audiences.

How it all Started

The story of carbonated water began long before influencers and Instagram-worthy cans. Schweppes (Switzerland, 1783), Perrier (France, 1863), San Pellegrino (Italy, 1899), and Topo Chico (Mexico, 1895) were among the first to commercialize naturally carbonated or artificially infused sparkling water. These brands catered to sophisticated European consumers, offering a premium alternative to still water long before "hydration goals" were a thing.

But while these brands thrived globally, sparkling water remained a niche product in the U.S. for decades, used mostly as a mixer or an upscale dining alternative to soda.

We're Americans, we want Flavor and Variety

Everything changed in the 2010s when health-conscious consumers began ditching sugary sodas and artificially sweetened diet drinks in favor of "cleaner" beverages. This shift created the perfect storm for LaCroix, which had been around since the 1980s but suddenly exploded into a Millennial-fueled cultural obsession.

Polar Seltzer (a family-owned Massachusetts brand from 1882) saw a resurgence, driven by unique seasonal flavors and strong East Coast loyalty. Spindrift (2010) took things a step further by using real fruit juice, targeting those who wanted a natural yet flavorful option.

By 2018, PepsiCo jumped into the game with Bubly to compete with Spindrift and LaCroix, proving that even big brands had to acknowledge the seltzer revolution. The market wasn’t just growing, it was fragmenting into micro-audiences looking for the version that best suited their lifestyle.

AHA entered the market in March 2020 by Coca-Cola as its response to the booming flavored sparkling water trend. It was designed to compete directly with LaCroix, Bubly, and Spindrift, but with a few unique twists, such as new, bolder flavors and some with caffeine.

Enter the Disruptors

As with any market trend, the more crowded it gets, the more brands need differentiation. Enter functional seltzers, a category that blends carbonation with added benefits.

• Celsius (2004) positioned itself as an energy-boosting, thermogenic beverage designed for fitness enthusiasts.
• Alani Nu (2018), backed by influencer marketing, directly targeted female fitness and lifestyle consumers, and has since been purchased by Celsius.
• Olipop (2018) and Poppi (2016, rebranded in 2020) introduced prebiotic sodas, appealing to gut-health-conscious consumers looking to swap out traditional soft drinks.

Then came Liquid Death (2019), which completely shattered category norms by marketing its canned sparkling water like an edgy, anti-establishment energy drink. By branding itself with skulls, punk rock, and "murdering your thirst", it attracted young, rebellious consumers who might have never touched a Perrier.

Niche Subcultures: CBD & Hard Seltzers Enter the Chat

The final phase of market fragmentation is when brands carve out hyper-specific audiences, creating entirely new subcategories within a trend.

• White Claw (2016) and Truly (2016) pioneered the hard seltzer craze, proving that seltzer could replace beer for a younger audience seeking a lighter, low-calorie alcohol option.
• Mad Tasty (2018), created by musician Ryan Tedder, infused sparkling water with CBD, making it appealing to wellness-focused yet cool, music-loving consumers.

By the 2020s, it was clear: seltzer water wasn’t just a trend—it had become a full-fledged beverage empire, with micro-brands fighting for dominance in health, energy, alcohol, and even CBD-infused spaces.

Lessons from Seltzer’s Evolution

The rise of seltzer water offers a blueprint for how markets evolve:

1. Start as a niche product – Sparkling water existed for centuries but was originally a niche alternative to soda.
2. Ride a cultural wave – LaCroix capitalized on the wellness movement, making seltzer trendy.
3. Differentiate for survival – New brands had to add value (energy, gut health, CBD, alcohol) to stand out.
4. Subdivide into hyper-specific audiences – Functional beverages, alcohol-infused seltzers, and bold brands like Liquid Death all proved that to thrive in a competitive space, you must create your own subculture.

What’s next? As brands continue to niche down, expect to see more personalized, functional, and culture-driven seltzers hitting the market. The next big thing might not be just sparkling water—it might be your version of sparkling water.

Kyle Duford

Partner/ECD

Kyle is an executive creative director specializing in crafting outstanding advertising and branding for global brands looking to winnable market share. Kyle’s unique blend of advertising, branding, and digital expertise allows him to create and lead some of the foremost brands through his work at The Brand Leader®. Learn more about Kyle, read his other blogs, or buy his newest book, The Brand Book: A Branding Primer.