Tonic Water Market—Growth, Trends, and Forecasts
Monday, April 13th, 2020
The global tonic water market is projected to increase at a CAGR of 7.1 percent during the forecast period: 2020 to 2025. 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 modernisation, promotion of tonic water as a mixer with alcohol, the availability of different variants and also due to the surging popularity in social media, which has led to the increased sale of tonic water.
Increasing Demand for Tonic Water
Diet tonic water is gaining increasing acceptance among consumers, owing to its lesser sugar content. As compared to the regular version, diet variants possess fewer calories or carbohydrates. Companies are also bringing in new naturally flavoured water in this product segment, intending to cater to consumers’ specific health needs and taste factors.
Supermarket and hypermarkets hold a majority share of the revenue in the global tonic water market. However, with the introduction of new players, an increasing number of Internet users, ease of access, fast-paced lifestyle, 24/7 availability, convenience and several options to choose from, some individual players are purveying their products directly to the consumer through online mediums. Moreover, companies are actively distributing their products through online channels either through their portals or third-party retailing to widen their consumer base.
North America Dominates The Market
North America accounted for a significant market share in the global tonic water market. North America was 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 developing economies due to less awareness about the product and also a relatively lower preference for gin. As compared to North America and Europe, Asian countries which have a high consumption of gin—such as the Philippines—do not use alcoholic mixers frequently.
Some of major key players in the tonic water market, globally include: 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.
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