In 1965, a team of scientists at the University of Florida developed a carbohydrate-electrolyte beverage that would change how we understand hydration.
Gatorade quickly went from a niche beverage enjoyed by the school’s football team to a winning product consumed by athletes of all stripes.
In 2025, Gatorade (now owned by PepsiCo) accounted for 65.5% of sales in the sports drink market, according to Beverage Industry. Sales of the drink topped $7.5 billion last year, far outpacing every other brand in the category.
Earlier this month, Gatorade announced some major changes coming to the brand in 2026. These tweaks, the company says, will once again change how people think about hydration.
America’s hydration problem
In April, PepsiCo announced a transformational new era for the Gatorade brand.
“Built on 60 years of research studying hydration’s effects on athlete performance, Gatorade remains committed to that purpose and is applying the same rigor to help people better understand and meet their hydration needs across a broader range of activities and moments,” the company said.
Executives say this new era is a response to a major problem in American culture: a lack of understanding of the importance of staying hydrated.
“One of the biggest misconceptions about hydration is that it only matters for elite athletes or extreme situations,” PepsiCo U.S. Senior Vice President of Research and Development Damian Browne said. “In reality, mild to moderate dehydration can build gradually across the day for most people, often without realizing it, and thirst is not always a reliable signal.”
More than 150 million Americans report feeling mild or moderate dehydration weekly, the company says. And with an overcrowded market, it can be hard for even the most well-intentioned consumer to understand which products will actually rectify the problem.
Enter Gatorade 2.0.
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Gatorade’s next chapter
In order to better help consumers understand hydration, Gatorade is making three major changes:
- Clearer messaging on packaging — Gatorade will be revamping its packaging, clearly labeling products to help consumers understand how its products can hydrate better, faster, or longer than water.
- New products — Gatorade will be adding several new products to its lineup, including Gatorlyte Longer Lasting, a proprietary electrolyte blend designed to help the body retain fluid longer than anything else in its portfolio.
- New formulas with less sugar and no artificial colors — Gatorade is revamping its formulas to include less sugar and is starting a journey to remove all artificial food dyes and colors from its products.
Source: PepsiCo
Of all the planned changes, Gatorade’s formula revamp is perhaps the most extensive and most impactful.
The changes will come in several stages. First, the introduction of Gatorade Lower Sugar, which contains no artificial flavors, colors, or sweeteners, and has 75% less sugar than the classic Gatorade Thirst Quencher.
Next, PepsiCo says that later this spring, the powder stick portfolio will remove all artificial colors. And in the fall, three classic flavors (Fruit Punch, Lemon-Lime, and Orange) will no longer contain food, drug, and cosmetic colors. Instead, those artificial dyes will be replaced with natural coloring from fruits and vegetables.
“By listening to consumers, we’re learning more of what they want and don’t want in their Gatorade,” PepsiCo U.S. President Mike Del Pozzo said. “We’re on a journey to remove artificial colors from our product portfolio while maintaining the bold Gatorade color people know and love.”
Can Gatorade save PepsiCo?
This next chapter for Gatorade comes at a critical moment for PepsiCo.
As Americans have become increasingly focused on wellness, consumers have started to shy away from soft drinks and other sugar-heavy beverages. This change in preference has led to a dip in PepsiCo’s overall market share, as shoppers increasingly turn to “healthier” drink options.
In 2025, Ram Krishnan, CEO of PepsiCo North America, told Fortune the company was looking to Gatorade as a way to reengage the health-conscious consumer.
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“We are starting to fundamentally shift from being a sports drink to playing in functional hydrations,” he told the outlet about the brand.
“We’re finding all these micro demands,” he continued, “and thinking how you build a brand around it.”
If the planned changes to Gatorade resonate with customers, PepsiCo could be positioned to capture a large portion of the $2 trillion wellness market. And that could be enough to return the company to the dominance it’s enjoyed for its 133-year history.
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