Global Nitro-infused Beverages Market - 2023-2030

Global Nitro-infused Beverages Market - 2023-2030

The Global Nitro-infused Beverages Market reached US$ 75.19 million in 2022 and is expected to reach US$ 147.96 million by 2030, growing with a CAGR of 8.83% during the forecast period 2023-2030.

The market is growing demand for craft nitro-infused beverages, including nitro coffee and nitro tea. Consumers are increasingly seeking unique and premium beverages leading to the proliferation of small craft producers. Nitro-infused alcoholic beverages, such as nitro stouts and cocktails are gaining popularity. These products offer a smoother and creamier texture, enhancing the drinking experience and expanding the market.

North American consumers were becoming more aware of nitro-infused beverages, particularly nitro coffee and nitro tea. This awareness was driven by the growing popularity of specialty coffee shops and the expansion of nitro offerings in cafes and restaurants. Many small and independent producers are entering the market, offering unique and artisanal nitro-infused beverages. This trend is contributing to the market's growth.

For instance, on March 07, 2023, Starbucks introduced its new Cinnamon Caramel Cream Nitro Cold Brew. The new Cinnamon Caramel Cream Nitro Cold Brew offered flavors of cinnamon and caramel that were swirled into Starbucks Nitro Cold Brew, then topped with cinnamon sweet cream cold foam and a dusting of cinnamon dolce topping. Starbucks Nitro Cold Brew was slow-steeped and infused with nitrogen when it was poured, creating a velvety, smooth coffee that was topped with a gorgeous cascade of cold foam.

Dynamics

Increasing Consumer Preference for Unique and Premium Beverages

Consumers are more willing to pay a premium for beverages that offer a unique and premium experience. Nitro-infused beverages, with their creamy texture and visually appealing cascading bubbles, fit this demand perfectly. Nitro-infused beverages are often associated with specialty coffee and tea and are perceived as healthier alternatives to traditional drinks. Health-conscious consumers are seeking such options leading to an increased demand for nitro-infused variations.

Nitro-infused beverages are often offered on tap in cafes, bars, and restaurants. This on-premises consumption model enhances the overall dining or social experience, attracting patrons and boosting sales. The nitro-infused beverages market includes a wide range of products, such as nitro-infused beer, cold brew coffee, kombucha, and cocktails. This diversity in offerings appeals to a broad consumer base and drives market growth.

Rising Health and Wellness Trends

The growing demand for healthy life is prompting consumers to actively seek beverage choices that align with their healthy living preferences. Nitro-infused beverages are gaining favor among health-conscious individuals as they are perceived as a more health-conscious alternative to high-sugar and calorie-laden drinks are characterized by their lower sugar and calorie content, making them particularly appealing to those aiming to curtail their sugar consumption and maintain a well-balanced diet.

Nitro-infused water options offer a revitalizing and hydrating choice, resonating with consumers are prioritize proper hydration as an integral component of their holistic health and wellness routines. Many brands operating in the nitro-infused beverage market strategically promote their products as integral components of a wholesome and balanced lifestyle, leveraging the prevailing health and wellness trend to attract discerning consumers.

High Production Costs

The high production costs associated with nitro-infused beverages can lead to higher retail prices. This deters price-sensitive consumers from purchasing these products, reducing market accessibility and limiting market expansion. Manufacturers facing high production costs struggle to compete effectively with other beverage producers offering more cost-efficient options. This competitive disadvantage can hinder their market share and growth prospects.

High production costs can eat into profit margins for nitro-infused beverage producers. As a result, companies have limited resources available for marketing, research, and development, which are essential for staying competitive in the market. The cost barriers to entering the nitro-infused beverage market can be substantial. New entrants find it challenging to invest in the necessary equipment, technology, and resources required for production, limiting market competition and innovation.

Segment Analysis

The global nitro-infused beverages market is segmented based on product type, category, distribution channel, and region.

Increasing Consumer Preference and a Wide Variety of Nitro Coffee

The nitro coffee segment held the largest share of the global nitro-infused beverages market. This dominance is attributed to its widespread popularity among consumers who sought a refreshing and caffeinated alternative to traditional coffee. Nitro-infused coffee is gaining traction in the market due to its unique qualities, and the infusion of nitrogen that creates a visually appealing cascade poured. As a result, contributes to the overall growth of the nitro coffee segment market.

Manufacturers are also developing new products in the market and expanding the market growth. For instance, on April 22, 2021, Guinness launched its new product Guinness Nitro Cold Brew Coffee beer. As the brewers of the world's most popular nitro stout, Guinness combined everything consumers loved about coffee and Guinness into one beer. It was sweet-smelling with a distinct rich coffee aroma, and Guinness Nitro Cold Brew Coffee beer offered the perfect balance of bitter and sweet with a roast coffee flavor.

Geographical Penetration

Early Market Adoption, Consumer Preference for Premium Products and Craft Beverage Movement in North America

North America is dominating the global nitro-infused beverages market. North American consumers often show a strong preference for premium and unique beverage options. Nitro-infused beverages, with their creamy texture and visually appealing cascading bubbles, are well-receiving by consumers seeking high-quality and distinctive drink experiences leading to market dominance in the region.

North America has a thriving craft beverage movement, and nitro-infused products align perfectly with this trend. Many local and artisanal producers in the region are introducing unique nitro-infused offerings, attracting consumers looking for handcrafted and specialty beverages. The region is offering a wide variety of nitro-infused beverage options, ranging from nitro cold brew coffee and nitro tea to nitro-infused craft beers and cocktails, and expanding the market growth.

COVID-19 Impact Analysis

The pandemic disrupted the global supply chain, affecting the procurement of essential ingredients and packaging materials for nitro-infused beverage production. This disruption led to production delays and increased costs, negatively impacting the market. Many cafes, bars, and restaurants that served nitro-infused beverages were forced to close or limit their operations during lockdowns. This reduction in on-premises consumption resulted in a significant decline in sales.

However, the pandemic heightened consumer awareness of health and wellness. Nitro-infused beverages, often perceived as healthier alternatives to sugary drinks, experienced increased sales due to this trend. With more people staying at home due to lockdowns and remote work arrangements, there was a surge in at-home consumption. Nitro-infused beverages, available in ready-to-drink formats, benefited from this trend.

Russia-Ukraine War Impact Analysis

The conflict contributed to increased volatility in markets, including those linked to agriculture and energy. Fluctuations in prices for ingredients and transportation costs impacted production costs for nitro-infused beverages, potentially affecting pricing and profit margins. Russia and Ukraine are significant agricultural producers, and interruptions in the supply of key ingredients, such as coffee, and tea could have affected the market.

The conflict contributed to increased volatility in commodity markets, including those linked to agriculture and energy. Fluctuations in prices for ingredients and transportation costs impacted production costs for nitro-infused beverages, potentially affecting pricing and profit margins. In regions directly affected by the conflict, consumer preferences and priorities have changed as a result of geopolitical instability.

By Product Type
• Nitro Coffee
• Nitro Tea
• Nitro Beer
• Others

By Category
• Plain
• Flavored

By Distribution Channel
• Supermarkets/Hypermarkets
• Convenience Stores
• Online Sales
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On September 20, 2023, Fire Department Coffee, a veteran-owned brand that rescued consumers from ordinary coffee - and yet another pervasive pumpkin spice season - marked its entry into the ready-to-drink category with the release of Fire Dept. Coffee Nitro Cold Brew. The cornerstone of the line, Nitro Irish Coffee, was a first-of-its-kind, non-alcoholic, canned Nitro Cold Brew infused with real whiskey and cream.
• In February 2022, PepsiCo launched Nitro Pepsi, marking the debut of a nitrogen-infused cola. Achieving its creamy and velvety texture was made possible through an innovative proprietary widget positioned at the base of every can.
• In February 2021, Cruise Beverages introduced a fresh lineup of Nitro-infused CBD Craft beverages. These purposeful drinks provide an alcohol-free alternative, aiming to enhance concentration and assist individuals in handling anxiety and stress without the side effects of sugar crashes or hangovers.

Competitive Landscape

The major global players in the nitro-infused beverages market include Starbucks Corporation, PepsiCo, Inc., Nestlé S.A., NITRO Beverage Co., Lavazza Group, Stumptown Coffee Roasters, H‑E‑B, LP, High Brew Coffee Inc., La Colombe Coffee Roasters and RISE Brewing Co.

Why Purchase the Report?
• To visualize the global nitro-infused beverages market segmentation based on product type, category, distribution channel, and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous nitro-infused beverages market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of critical products of all the major players.

The global nitro-infused beverages market report would provide approximately 61 tables, 58 figures, and 186 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies