Tonic Water Sales Gain Momentum as Consumers Realize it’s a Healthy Recreational Drink
Tonic water is aggressively gaining traction as a carbonated soft drink across the globe. Composed of quinine, it is widely consumed as a healthy beverage. Quinine is a naturally occurring compound extracted from quinoline, an alkaloid found in the bark of cinchona trees, which is mostly grown in Central and South America, Western Africa, and the Caribbean. Quinine is effective against malaria and capable of killing certain parasites that trigger illnesses. Low levels of sodium, saturated fat, and zero cholesterol, fat, and gluten, make it an ideal recreational drink. Thus, various associated health benefits coupled with therapeutic properties are driving the overall demand for tonic water across the globe.
However, the Food and Drug Administration (FDA) limits the use of quinine content in tonic water to about 83 milligrams of quinine per litre of tonic water. In addition, the approved quinine content for treating malaria is 648 mg every 8 hours for 7 days. These limitations are expected to pull the market in the opposite direction over the forecast period.
Cocktail Culture Expanding Growth Opportunities
Popularly, tonic water is either directly consumed or mixed with alcoholic beverages and mocktails. Over the past few years, tonic water has gained immense liking as a mixer for gin and whisky. Growing consumption of gin and influx of new brands has directly led to a boost in sales of tonic water at bars and restaurant.
According to The Wine and Spirit Trade Association, the value sales of gin in UK grew by 33% in 2018. Meanwhile, the annual per capita consumption of gin is 0.24 litres in the U.S. As an increasing number of boomers and millennials embrace the cocktail culture, analysts anticipate that they will dictate tonic water sales. The heavy influence of social media trends and aggressive promotion by restaurants are further expected to support market growth.
Introduction of Flavoured Tonic Water, an Emerging Trend in the Market
Regular tonic water with quinine is losing its novelty with consumers. This has created the need for new product variants. Thus, market players are focusing on launching new products related to flavour, pricing, and packaging.
For instance, in September 2020, Cornish soft drinks company, Jolly, launched new tonic water in a 200 ml can packaging. The product is blended with natural quinine and botanicals with notes of citrus.
Similarly, in 2018, one of the leading UK’s tonic water brand, Fever-Tree, launched limited-edition cucumber tonic water. The product is available in 500 ml glass bottles for the sale in the summertime. It claims to have natural cucumber essence, specially designed to be paired with floral flavoured gin.
Diet and Flavoured Tonic Water to Attract the Large Consumer Base
The global tonic water market is segmented on the basis of product type, content, and sales channel. Based on product type, flavoured tonic water is expected to register the highest CAGR over the forecast period. Consumer preference is ambling towards flavoured tonic water, which blends well with gin. Ability of flavoured tonic water to enhance gin-based cocktails is expected to drive the segment’s growth in the coming years.
Based on the content type segment, diet tonic water is expected to gain a significant incremental dollar opportunity by 2025. As a large chunk of consumers will seek out healthier dietary choices, they are likely to be calorie conscious, attributing to the growth of unsweetened variations of tonic water in retail space.
Asia Pacific Enjoys High as Urbanization Leads to Higher Consumption of Tonic Water
Globally, Europe and North America are collectively expected to hold the largest share of the pie. A more open culture of restaurants, bars, and recreational drinking is expected to keep these regions in the lead. A higher spending capacity on canned and bottled beverages sold via retail stores is also expected to contribute to their lead in the global market. In addition, continuous introduction of new products infused with different flavours and natural ingredients will cater to the mushrooming opportunity.
Meanwhile, Asia Pacific is expected to register a relatively high CAGR over the forecast period. Rising urbanization and increasing disposable income on entertainment will support the regional market. Growing hospitality industry and an upcoming neighbourhood bar trend will fuel cocktail drinking trends. Asia Pacific also stands to benefit with a growing number of players making their way into the alcohol market with the sale of tonic water.
Global Tonic Water Market: Key Players
Some of the major players considered in the report include Fever-Tree Drinks PLC, 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.
Key Elements Included In The Study: Global Tonic Water Market
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