How a German startup turned a university project into a €160M business by hacking human psychology
The Mind-Bending Science Behind Air Up’s Success
Imagine drinking plain water that tastes like strawberry, lime, or even cola—without a single drop of flavoring, sugar, or artificial additives touching your lips. Sounds impossible? Welcome to Air Up, the Munich-based startup that’s literally rewriting the rules of how we experience taste.
The shocking truth: What you think is “taste” is actually up to 80% smell. Air Up founder Lena Jüngst and her team discovered this neurological loophole and built an entire company around it.
From Dorm Room Discovery to €160 Million Empire
The Accidental Breakthrough
In 2016, five design students at Schwäbisch Gmünd University were working on what seemed like just another academic project. Lena Jüngst, Tim Jäger, Fabian Schlang, Simon Nüesch, and Jannis Koppitz were exploring how neuroscience could revolutionize product design.
The eureka moment came when they realized: Why add chemicals to water when you can simply trick the brain?
Their research into retronasal olfaction—the process where aromas from your mouth travel to your nose—revealed something game-changing. The flavors we think we’re tasting are actually smells reaching our olfactory receptors through the back of our throats.
The Pivot That Changed Everything
What started as a bachelor’s thesis became Germany’s hottest beverage startup when the team received an EXIST startup grant. By 2018, they had officially launched Air Up, and the results were staggering:
- 80,000 bottles sold in the first 6 weeks
- 5+ million customers across 11 countries by 2023
- Revenue explosion: €90M (2021) → €160M (2022) = 78% growth
- Profitability achieved by end of 2020
How the “Impossible” Technology Actually Works
The Secret Sauce: Psychology Over Chemistry
Air Up’s genius lies in its simplicity. Here’s the breakdown:
The Hardware:
- BPA-free bottle (600-850mL capacity)
- Integrated straw system
- Removable scent pod slot
The Magic:
- Scent pods contain plant-based aromatics (no liquids)
- When you sip, air flows through the pod
- Scented air mixes with plain water in your mouth
- Your brain interprets the aroma as flavor
- Result: Flavored water experience with zero calories
One pod flavors 5 liters of water and lasts longer when refrigerated—making it incredibly cost-effective compared to flavored beverages.
Why Gen Z and Millennials Are Obsessed
The Perfect Storm of Trends
Air Up hit the market at exactly the right time, capturing several cultural movements:
🌱 Health Consciousness: Zero sugar, calories, or artificial additives 🌍 Environmental Guilt: Replaces single-use plastic bottles with reusable system 🧠 Science Appeal: The “how does this work?” factor drives social media virality 💧 Hydration Struggle: Makes boring water exciting without compromise
Social Media Gold Mine
The product’s “witchcraft” factor makes it perfect for TikTok demonstrations, Instagram unboxings, and YouTube reviews. Users can’t resist filming their friends’ shocked reactions to tasting “impossible” flavors.
The Roadblocks Nobody Talks About
Not Everyone’s Convinced
Despite the hype, Air Up faces legitimate criticism:
Taste Quality Issues:
- Some users find flavors “artificial” or overpowering
- Lingering scents can be off-putting
- Individual sensitivity to aromas varies dramatically
Practical Problems:
- Bottle doesn’t function well as regular water bottle without pods
- Straw design can create suction issues
- Higher upfront cost than traditional bottles
Environmental Questions:
- Scent pods aren’t universally recyclable
- Shipping and packaging still create waste
- True environmental impact debated
The Business Model That Actually Works
Revenue Streams Decoded
Air Up’s brilliance extends beyond the product to the business model:
Initial Purchase: Premium-priced bottles ($35-50) Recurring Revenue: Scent pod subscriptions (where the real money is) Market Expansion: From direct-to-consumer to major retailers
Strategic Pivots
CEO Lena Jüngst revealed key strategy shifts that drove success:
- Distribution Evolution: Started with retail partnerships, pivoted to direct sales, then selectively returned to stores
- Manufacturing Localization: Moved production from Asia to Europe (Austria for bottles, Netherlands for pods) cutting shipping costs and environmental impact
- Marketing Focus: “This is not a water bottle” campaign positioned Air Up as entirely new category
What’s Next: The Future of Functional Beverages
Innovation Pipeline
Air Up isn’t stopping at flavored water:
- New scent varieties in development
- Sustainable packaging research ongoing
- Premium materials for bottle construction
- Partnership with Eden Reforestation Projects (one tree planted per order)
Market Expansion Strategy
With European success established, Air Up is eyeing:
- US market penetration (already launched)
- Asia-Pacific expansion
- Corporate wellness partnerships
- Subscription service optimization
The Psychology Behind the Success
Why Our Brains Fall for It
Air Up succeeds because it exploits fundamental human psychology:
Novelty Bias: We’re naturally attracted to new experiences Placebo Effect: Expecting flavor makes us taste it more intensely
Social Proof: Viral demonstrations convince skeptics Health Halo: “Healthy” positioning makes it feel virtuous
The Bigger Picture
Air Up represents a broader shift toward functional experiences over functional ingredients. Instead of adding chemicals to create desired effects, they’re using psychology and sensory manipulation.
This approach could revolutionize:
- Dietary supplements (making healthy foods taste better)
- Medical treatments (masking bitter medications)
- Nutrition therapy (helping eating disorder recovery)
The Verdict: Revolutionary or Gimmicky?
The Numbers Don’t Lie
- €200M estimated revenue for 2023
- 500+ employees and growing
- Multiple design awards including iF Product Design Award
- Celebrity investors including PepsiCo executives
The Real Test: Sustainable Growth
Air Up’s true measure won’t be initial hype but whether they can build lasting customer habits. Early signs are promising:
- High repeat purchase rates for scent pods
- Growing international presence
- Profitable operations since 2020
Bottom Line: The Future of Drinking Water?
Air Up proves that sometimes the most revolutionary innovations come from questioning basic assumptions. By asking “What if we could change perception instead of chemistry?” they created an entirely new product category.
Whether you’re a health-conscious consumer tired of sugary drinks, an environmental advocate seeking plastic alternatives, or simply someone fascinated by the intersection of neuroscience and design, Air Up offers something genuinely different.
The real question isn’t whether Air Up will succeed—it already has. The question is whether this represents the future of functional beverages, where psychology matters more than chemistry, and where the best ingredient is often no ingredient at all.
Want to experience the “impossible” for yourself? Air Up bottles and scent pods are available online and in select retailers across Europe and the US. Just don’t blame us when you find yourself questioning everything you thought you knew about taste.
