Tonic Water Market Analysis, Dynamics, Forecast and Supply Demand 2025

Posted by aartimurkute on September 2nd, 2021

Tonic water is immensely popular as a soft drink and healthy alternative to other beverages. Made primarily of quinine found in South America, Africa, and the Caribbean, quinine plays a vital role in tackling malaria and other parasites that cause the flu. Tonic water has acceptable levels of saturated fat and sodium and no gluten, cholesterol, or saturated fat, making it ideal for health-conscious consumers.

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Companies Attempt to Think Outside the Box With Novel Flavours in Tonic Water Market

Conventional tonic water has gradually lost its popularity amongst consumers, leading to the emergence of newer variants. Companies are focusing their efforts on experimenting with pricing, packaging, and flavours. For e.g. – in 2018, Fever- Tree released a limited edition cucumber tonic water in half a litre glass bottles to capitalize on the summer. Fever-Tree claimed that their product was best combined with floral flavoured gin. Two years later, Jolly, a UK-based beverage company, unveiled a tonic water in a 200 ml can that is a blend of botanicals, citrus, and quinine.

Long-standing Pub and Dining Culture Explains Lead of Europe in Tonic Water Market

Europe and North America dominate the global tonic water market as they have a thriving culture of recreational drinking and dining. Furthermore, a higher disposable income allows them to spend more on bottled and canned beverages, cementing their lead over other regions in the tonic water market. Nonetheless, the APAC region cannot be overlooked entirely as rising urbanization with a desire to spend more on entertainment supports the local market. In addition, several tonic water makers have announced their intention to enter this lucrative region, either independently or through local partnerships.

Millennials Embracing Cocktail Culture and Dictating Direction in the Tonic Water Market

Tonic water can either be consumed on its own or with another beverage. Tonic water is a well-suited mixer for whiskey and gin. An influx of brands coupled with rising consumption levels of gin have fuelled the sales of tonic water at bars and restaurants. The Wine and Spirit Trade Association estimates that the sales of gin in the UK grew by more than a third in 2018 alone. As evermore millennials embrace the cocktail culture globally, experts believe they will drive sales in the tonic water market. In addition, aggressive marketing efforts by eateries and social media trends should play a key role in the tonic water market during the forecast period.

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Companies Advised to Focus on Flavoured Tonic Water to Maximize Profitability

Flavoured tonic water is a favourite among consumers and is predicted to record the highest CAGR during the assessment period. Flavoured tonic water blends seamlessly with gin and enhances its flavour, driving growth in the tonic water market. Another noteworthy segment to carefully evaluate in the tonic water market is that of diet tonic water. Consumers have become calorie conscious and frequently check ingredient labels on their drinks, benefiting the sales of unsweetened tonic water in supermarkets.

Several companies profiled in this exhaustive report on the tonic water market include Keurig Dr Pepper, Inc., PepsiCo, Inc., The Coca Cola Company, White Rock Beverage Ltd, Fentimans Ltd., Powell And Mahoney LLC, Britvic PLC, East Imperial Superior Beverages and Zevia, LLC.