Global Tonic Water Market is Segmented By Product Type(Regular Tonic Water, Low Calorie Tonic Water, Slim Line Tonic Water), By Flavor(Flavored Drinks, Non-Flavored Drinks, Others), By Packaging Type(Cans, Bottles), By Distribution Channel(Offline, Online), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview:
The global tonic water market valued USD xx million in 2021 and is forecast to reach USD xx million by 2031, growing at a CAGR of xx% during the forecast period (2024-2031).
Tonic water is a carbonated beverage flavored with a small amount of quinine. Originally tonic water is used as a prophylactic against malaria and leg-related diseases. These medical properties of the tonic water are expected to boost market growth in the forecast period. Tonic water usually holds a significantly lower quinine content and is consumed for its distinctive bitter flavor. It is often used in mixed drinks, especially in tonics and gin. The global tonic water market valued USD xx million in 2021 and is forecast to reach USD xx million by 2029, growing at a CAGR of xx% during the forecast period (2022-2029).
Market Dynamics:
The growing consumption of premium drinks and the development of additional flavorings boost the market growth
Consumers are shifting their preferences towards premium drinks. They are ready to spend money on innovative products with different flavored products. 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. Companies are also creating new naturally flavored tonic water in this product category, intending to cater to the consumer's specific needs for diet consciousness and taste factors. For instance, Soda stream offers naturally flavored diet tonics with zero calories. Moreover, Tonic water contains quinine, which gives it a bitter taste. The inclusion of quinine in tonics is usually associated with a primary health benefit of tonic water. Quinine's primary benefit is the treatment of malaria. These medical properties influence the consumer's choice of drink, which boosts the market growth. For instance, Schweppes introduce tonic water. Schweppes tonic water ingredients quinine has been used against a mosquito-borne malaria virus. It is a carbonated drink with health benefits; the alkaloids or the "bitter taste" in quinine can alleviate the abdominal problems caused by mild indigestion.
Market Segmentation:
Regular tonic water held the highest market revenue share of xx% in the year 2021
Based on the product type, regular tonic water was the largest product segment with a market share of more than xx% in 2021 and is expected to maintain dominance over the forecast period. The regular tonic water products are attributed to its products widely available in the market. Moreover, the regular tonic water has added sugar and a wide range of flavors, attracting customers in the global market.
Based on the flavor, the flavored drinks category was the dominant segment in 2021 with xx% share in the market because flavored tonic water has traditionally been consumed as a mixer for alcoholic beverages. However, with changes in tastes and preferences of consumers, the demand for flavored tonic water is expected to fastest growing in the forecast period.
Based on the distribution channel, Hypermarkets & supermarkets were the largest shares of more than xx% in 2021. Many supermarkets like Walmart, Target, Tesco, 7Eleven, Sainsbury's, Auchan, Apar, and Aldi have maximum customer penetration in North America and Europe. These channel companies offer a wide range of grocery products and have a large chain of stores for maximum customer engagement. Therefore, all the manufacturers offer a full product portfolio for maximum profit in these hypermarkets and supermarkets.
Geographical Penetration:
The Europe is dominating the global tonic water market in the year 2021
The Europe region was dominating the global tonic water market in 2021. This region is attributed to the high tendency toward consuming alcoholic and non-alcoholic beverages in European countries. In Germany, the addition of quinine is regulated by the German Flavorings Directive while permitting a limit of quinine content in tonic water. The quinine content in tonic water makes it a good drink mixer in this region. On the other hand, North America is expected to be the fastest-growing during the forecast period. The popularity and surging demand for gin are anticipated to boost the acceptance of tonic mix in the upcoming years.
Competitive Landscape:
Some of the key companies that are currently holding majority shares in the regional and global tonic water market are Bradley's Tonic Co., Zevia, White Rock Products Corporation, The London Essence Company, The Coca-Cola Company, Q Tonic LLC, Franklin & Sons Ltd, Fevertree Drinks plc, Fentimans Ltd, and Keurig Dr Pepper Inc., among others. The strategy for product launch, partnerships, mergers, and joint ventures has been the crucial approach behind developing these companies in the global market strategy. Tonic water manufacturing companies are developing new products with various flavors to drive market growth.
For instance, in February 2018, Fentimans Ltd. Launched 'crème de la crème' of tonic water. This Connoisseurs Tonic Water has been developed to “accentuate and amplify” the botanical flavors of premium gin.
In November 2019, The London Essence Company launched its new Original Indian Tonic Water. The tonic is light and low in calories, at under 20kcals per 100ml, with naturally sourced sweetness and no artificial ingredients.
In April 2019, Franklin & Sons launched a new four tonic water range. The four tonic flavors include Rosemary Tonic Water with Black Olive; Pink Grapefruit Tonic Water with Bergamot; Rhubarb Tonic Water with Hibiscus; and Elderflower Tonic Water with Cucumber.
Covid-19 Impact:
Negative impact on the global tonic water market
The COVID 19 pandemic has had a negative impact on the tonic water market in 2020. The main source of income in the beverage industry market is distribution channels through off-trade sales, but the government strictly shut down the bars and restaurants, and pubs, which caused decreased demand for market size. However, the lockdown has created a great opportunity for e-commerce channels due to social distancing.
