Tonic Water Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Tonic Water Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global tonic water market is projected to increase at a CAGR of 7.1%, during the forecast period, 2021-2026.

Key Highlights

• Tonic water is a carbonated soft drink in which quinine is dissolved. Originally Tonic water was used as a medicine against malaria but now it has significantly lower quinine content and is consumed for its distinctive bitter flavor. It is often used in alcoholic drinks, particularly in gin and tonic.
• The market is driven by the rising disposable income of people due to modernization, promotion of tonic water as a mixer with alcohol, increasing popularity of tonic water because of availability of different variants and also due to the surging popularity in social media and internet which has led to the increased sale of tonic water.

Key Market TrendsIncreasing Demand for Low-Sugar and Naturally Flavored Tonic Water

Consumers have developed a strong preference for premium spirits and are willing to spend money on innovative products with a distinct character. As a result, there is a growing preference for premium-priced mixers including tonic water. The resurgence of the cocktail trend in emerging economies has boosted growth for the super-premium tonic water category. In addition, diet tonic water is gaining increasing acceptance among consumers owing to its lesser sugar content as compared to regular, diet variants that possess fewer calories or carbohydrates. Companies are also bringing in new naturally flavored water in this product segment, intending to cater to the consumers’ specific needs for diet consciousness and taste factors. For instance, Sodastream offers naturally flavored diet tonics with zero calories.

North America Dominates the Market

North America accounted for a significant market share in the global tonic water market. North America is the second-largest supplier of tonic water in 2017. The popularity and surging demand for gin are expected to boost the acceptance of tonic mix in the next few years. The mixing of tonic water in alcoholic beverages is prominent in developed countries. The market is still at its nascent stage in the developing economies due to less awareness about the product and also a relatively lower preference of gin. As compared to North America and Europe, the Asian countries having a high consumption of gin such as the Philippines, do not use alcoholic mixers frequently.

Competitive Landscape

Some of major key players in the tonic water market, globally includes Fever-Tree, Keurig Dr Pepper, Inc., Hansen Beverage, Fentimans Ltd, SodaStream Inc. among others. In recent years, Fever-Tree has expanded its offering to include mixers for other spirits alongside tonic water. Its product line-up now includes Sicilian lemonade, Madagascan cola, ginger beer, and ginger ale. As with the company’s tonic water, many of those drinks come in various different flavors.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Fever
Tree
Keurig Dr Pepper, Inc.
Hansen Beverage
Fentimans Ltd
SodaStream Inc.
White Rock Beverage Ltd
El Guapo Bitters
The Coca
Cola Company

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