Tonic Water Market Size

Global Tonic Water Market Overview

Tonic Water Market Size was valued at USD 1.8 billion in 2022. The Tonic Water market is projected to grow from USD 2.014 Billion in 2023 to USD 3.9544 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 11.90% during the forecast period (2023 - 2030). Rising alcoholic beverage consumption and consumers' growing health consciousness are the key market drivers enhancing the market growth.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Tonic Water Market Trends

• Rising alcoholic beverage consumption to boost the market growth

the rising consumption of alcoholic beverages like gin, vodka, and other cocktails. Quinine, which helps lower the risk of malaria and other leg-related medical issues, is also present in tonic water in significant amounts. Over the forecast period, these medicinal qualities are anticipated to drive market growth. One of the most popular soft drinks with spirits consumed worldwide is tonic water. Tonic water gives cocktails a bitter edge and is a common base ingredient in many beverages. Gin and tonic have gained popularity among drinkers worldwide and are frequently called "G and T" in nations like the U. S., Canada, and the U. K. Australia, New Zealand, and Ireland.

Due to rising consumer demand for beverages with novel tastes and flavors, cocktail drinking is steadily overtaking spirit drinking in popularity. Young professionals and members of the Millennial generation prioritize flavor over beverage strength. Customers in the area are starting to switch to low-alcohol cocktails as they become more health-conscious. Cocktails give customers a variety of options, including both cutting-edge products and healthier alternatives like cocktails infused with quinine, ginger, or lavender that are good for one's health. As a result, bartenders are concentrating on creating novel cocktails with healthy ingredients. For manufacturers of tonic water worldwide, this will present growth opportunities. Millennials and younger generations primarily consume gin and tonic water. These customers seek premium goods with distinctive flavors, brands, and packaging. Customers worldwide are switching to premium cocktail brands and their high-quality ingredients.

The choices and tastes of young consumers have evolved, rather than paying for typical alcoholic beverages like gin. Due to consumers' growing health consciousness, the demand for non-alcoholic beverages is significantly increasing. Alcohol consumption is declining among young people as they switch to plant-based beverages. The typical tonic water-to-gin ratio in recipes ranges from 1:1 to 1:3. Over the forecast; these trends are anticipated to continue to benefit the sector has enhanced the Tonic Water market CAGR across the globe in recent years.

Tonic Water Market Segment Insights

Tonic Type Insights

Based on type, the Tonic Water market segmentation includes Flavored and Non-Flavored. The Flavored segment held the majority share in 2022 concerning the Tonic Water market revenue. Tonic water, or Indian tonic water, is a quinine-flavored carbonated soft drink with a distinctly bitter taste. Cocktails, particularly those made with gin or vodka (such as a gin and tonic), frequently include tonic water as a drink mixer.

Tonic Water Packaging Type Insights

The Tonic Water market segmentation, based on Packaging type, includes Bottles and Cans. The Bottles segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Bottles can be made in almost any size, shape, or color to suit your needs. Your bottle will be branded to advertise your business, whether a label is printed to adorn it or decorations are directly applied to it. Creating your ideal product packaging by selecting the material, size, finish, color, and closure implants for Tonic Water positively impacts the market growth.

Tonic Water Distribution Channel Insights

The Tonic Water market data has been bifurcated by Distribution Channels into Store-based and non-Store based. The Store-based segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. It is a very interactive type of retailing. These sales are made for goods like cosmetics, jewelry, and food. To sell their goods, retailers go to the homes or workplaces of their customers. Network marketing is another name for when goods and services are sold directly to customers.

Figure 1:  Tonic Water Market by Type, 2022 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Tonic Water Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The Europe Tonic Water market accounted for USD 0.8244 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. Gin consumption is renowned throughout Europe. One of the most well-known cocktails in Europe is gin and tonic. For its flavors and variety of applications in various beverages, tonic water is well-known in the area. The introduction of fresh and cutting-edge products by market players has resulted in growth in the tonic water market in Europe. It is offered in various flavors, price ranges, and packaging. Due to consumer interest in health, various calorie- and sugar-free tonic waters are also offered. The availability of tonic water in grocery stores and retail establishments contributes to the market's expansion. For example, tonic water and Fever Tree Mixers had an on-trade value of 25 points 1 percent in 2021. Due to the proliferation of pubs, bars, and lounges, tonic water demand increased.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil. 

Figure 2:  TONIC WATER MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America Tonic Water market accounts for the second-largest market share. The U. S., The largest markets for tonic water in North America is the United States and Canada, which presents a huge opportunity for the industry. Additionally, these two nations consume much gin, raising the tonic water demand. The demand for tonic water in the area is fueled by increased consumption of these spirits.

Due to the prevalence of binge drinking in the U.S., more people are anticipated to drink tonic water in the upcoming years. In 2019, nearly 25% of consumers aged 18 and older (29.7% of men and 22.2% of women) reported excessive alcohol consumption, according to the 2019 National Survey on Drug Use and Health (NSDUH). Since bartenders in pubs and bars began blending premium tonic water in top-tier spirit brands, the growing trend for cocktails in Canada has contributed to the development of super-premium drinks. Additionally, socioeconomic factors, such as evolving Canadian lifestyles and significant urbanization, favor the production and consumption of alcoholic beverages and, as a result, mixers like tonic water. Further, the U.S. tonic Water market held the largest market share, and the CANADA Tonic Water market was the fastest-growing market in the European region.

The Asia-Pacific Tonic Water Market is expected to grow at the fastest CAGR from 2022 to 2030. In nations like India, China, and Indonesia, consumption of various spirits has steadily risen. These spirits include gin, whiskey, vodka, and rum. The region's demand for tonic water is driven by increased consumption of various types of alcohol. Moreover, the China Tonic Water market held the largest market share, and the India Tonic Water market was the fastest-growing market in the Asia-Pacific region.

Tonic Water Key Market Players & Competitive Insights

Major market players are spending much on R&D to increase their product lines, which will help the Tonic Water market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Tonic Water industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the Tonic Water industry to benefit clients and expand the market sector. The Tonic Water industry has provided medicine with some of the most significant benefits in recent years. The Tonic Water markets major players such as Fever-Tree (UK), Dr. Pepper Snapple Group (US), SodaStream International Ltd. (Israel), A.S. Watson Group (China), Fentimans (UK), Seagram Company Ltd. (Canada), White Rock Beverages (US), Hansen Beverage Company Inc. (US), Stirrings (US), East Imperial (New Zealand), and others are working on expanding the market demand by investing in research and development activities.

Fever-Tree (UK) The business’s brand name is derived from its first offering, tonic water. Quinine, a substance derived from the bark of the South American cinchona tree, was used to flavor their tonic. The first tonic water was made from quinine when it was first introduced to India as a pharmaceutical to help with lowering the fever caused by malaria. Soda, water and sugar were added to make it more palatable. The fever tree was the name given to the cinchona tree in India.

Also, a fellow tradesman asked Fentimans (UK) Thomas Fentiman, an iron puddler from Cleckheaton, England, for a loan in 1905. An agreement was reached, and the recipe for ginger beer using only botanicals was given as collateral. Thomas possessed the special recipe because the loan was never repaid.

Key Companies in the Tonic Water market include

• Fever-Tree (UK)


• Dr. Pepper Snapple Group (US)


• SodaStream International Ltd. (Israel)


• A.S. Watson Group (China)


• Fentimans (UK)


• Seagram Company Ltd. (Canada)


• 
  White Rock Beverages (US)


• Hansen Beverage Company Inc. (US)


• Stirrings (US)


• East Imperial (New Zealand)

Tonic Water Industry Developments

November 2020: South Australian company Bickford and Sons recently introduced new tonic water. Quinine, carbonated water, sugar, or another natural sweetener are all used to produce tonic water.

November 2020: The Coca-Cola Company brand Schweppes recently introduced a new, high-end 600 ml glass bottle. The product has three flavors: elderflower, slimline tonic, and Indian tonic.

September 2020: With the introduction of the new Raspberry tonic water in Spain, Fever-Tree, a major competitor in the mixers market, expands its product line. They are made with the finest natural quinoa from the Congo, Scottish raspberries, and English rhubarb.

Tonic Water Market Segmentation

Tonic Water Type Outlook

• Flavored


• Non-flavored

Tonic Water Packaging Type Outlook

• Bottles


• Cans

Tonic Water Distribution Channel Outlook

• Store Based


• Non-Store Based

Tonic Water Regional Outlook

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

• 
  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• 
  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America