The tonic water market size is projected to reach US$ 3.47 billion by 2031 from US$ 2.01 billion in 2023. The market is expected to register a CAGR of 7.1% during 2023–2031. Increasing demand for low-sugar tonic water is likely to continue as a key trend in the market.
The increasing consumption of gin is one of the major factors driving the growth of the tonic water market. Innovations in flavors in tonic water help manufacturers captivate consumers with exciting flavor profiles. In addition, the expansion of e-commerce is expected to present several opportunities for the tonic water market to create innovative products, grow, and meet evolving needs.
Tonic water is a carbonated soft drink, majorly used as a mixer or base with gin, vodka, and other spirits. It is available in a wide range of flavors such as wild berry, elderflower, and bitter lemon. With the changing lifestyles of people and increasing preference for premium drinks, the demand for tonic water is increasing significantly across the US, India, Japan, Australia, the UK, Spain, and Italy, among other developed and developing countries. People in these countries prefer exploring new experiences and tastes, which bolsters the demand for tonic water. Moreover, the increasing trend of cocktail culture and night parties among Gen Z and the millennial population also results in a surged demand for tonic water.
Changing consumer preferences and tastes have been driving the demand for gin across the world. With people exploring and indulging in the diverse flavors of gin, the requirement for complementary mixers to enhance their drinking experience also surges. Tonic water, with its bitter yet refreshing taste, serves as a perfect companion to gin. Thus, a surge in gin’s popularity has led to a corresponding rise in the consumption of tonic water. Further, craft gin is gaining significant popularity across the world. As gin enthusiasts become more discerning of the flavor profiles of their spirits, they seek high-quality mixers to elevate their cocktails. Artisanal and small-batch brands have started focusing on catering to the demand for premium tonic water, offering a wide range of botanical-infused and flavored tonic water that complements the nuanced characteristics of craft gin. Moreover, consumers are willing to pay premium prices for superior products that enhance their drinking experience.
With the increasing popularity of online shopping, particularly in the food & beverages sector, tonic water brands can leverage e-commerce platforms to expand their market presence and reach an extended consumer base. By establishing the online presence, these brands can directly connect with consumers, offering a seamless shopping experience and convenient delivery options, which is especially appealing to busy urban residents. The launch of a dedicated online platform specifically offering alcoholic beverages and mixers creates growth opportunities for the tonic water market players. In July 2022, A1 Cuisines, a company that owns and manufactures the Malaki brand of tonic water, announced the launch of BeverageCart, India’s first mobile app-based beverage platform. The app aims to aid the smooth delivery of beverages to retailers, hotels, restaurants, and caterers, thereby fulfilling wholesale online orders. Such platforms provide a curated selection of premium tonic water brands, offering consumers a one-stop shop for their cocktail needs. .
Key segments that contributed to the derivation of the tonic water market analysis are product type, category, and distribution channel.
The geographic scope of the tonic water market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
Europe dominates the market. Key players such as Fever-Tree and Schweppes have significant presence in the tonic water market in Europe. These companies have successfully capitalized on premiumization by launching high-quality tonic water options made with natural ingredients and unique flavors. In November 2021, Arctic Blue announced the launch of tonic water made from pure Finnish groundwater, which is a low-sugar and low-calorie yet tasty product. In addition, the launch of premium tonic water variants, including artisanal and small-batch offerings, has further stimulated consumer interest.
The regional trends and factors influencing the Tonic Water Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Tonic Water Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 2.01 Billion |
| Market Size by 2031 | US$ 3.47 Billion |
| Global CAGR (2023 - 2031) | 7.1% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Tonic Water Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Tonic Water Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The tonic water market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A key recent development in the tonic water market is mentioned below:
The "Tonic Water Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The List of Companies - Tonic Water Market
The tonic water market size is projected to reach US$ 3,479.28 million by 2031.
The Coca-Cola Co, Fevertree Drinks Plc, Three Cents Co, Thomas Henry GmbH, Q Tonic LLC, East Imperial Beverage Corp, Fentimans Ltd, Britvic Plc, Bickford & Sons Ltd, and White Rock Beverages Ltd are a few of the key players operating in the tonic water market.
Increasing demand for gin and innovations in flavors are major factors contributing to the growth of market.
Rising preference for low-sugar tonic water is likely to emerge as a key trend in the market in the future.
Europe accounted for the largest share of the market in 2023.