Market Summary
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
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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
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Fever-Tree (UK)
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Dr. Pepper Snapple Group (US)
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SodaStream International Ltd. (Israel)
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A.S. Watson Group (China)
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Fentimans (UK)
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Seagram Company Ltd. (Canada)
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White Rock Beverages (US)
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Hansen Beverage Company Inc. (US)
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Stirrings (US)
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East Imperial (New Zealand)
Tonic Water Industry Developments
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January 2024: Fever-Tree, a leading brand in the premium tonic water sector, has reported its highest-ever sales for FY23. The company attributed this growth to growing consumers’ demand for high-end mixers and successful expansion into new international shores. In relation to that, the report indicated a significant increment in sales from North America and Asia-Pacific.
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Schweppes launched its new range of different varieties of tonic waters in February 2024. The company is introducing exotic flavors like Yuzu, Hibiscus and Cucumber Mint to meet the increasing demand by consumers for varied tastes. In this way, Schweppes is changing its brand image in order to appeal more to young people.
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April 2024: East Imperial announced an expansion of its distribution network in April 2024. This saw East Imperial secure partnerships with some major retailers in Europe and North America. Consequently, it is expected that this move will open up market doors for East Imperial, thereby significantly boosting its presence and sales within these regions.
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June 2024: Q Mixers initiated sustainability efforts on June 1st, 2024. An official statement from the company stated that by then, all packaging would be recyclable, while carbon emissions would drop by thirty percent by 2026. These steps were taken as part of Q Mixers’ commitment to environmental responsibility and sustainable business practices.
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August 2024: Fentimans entered strategic alliances with several craft gin distillers throughout August last year. They did this because they wanted to make unique G&T, which can only be found on their shelves, hence improving customer experiences. Since Fentimans is now collaborating with other gin distributors or producers, it means they are going to increase their market sizes and add value to their products.
Tonic Water Market Segmentation
Tonic Water Type Outlook
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Flavored
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Non-flavored
Tonic Water Packaging Type Outlook
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Bottles
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Cans
Tonic Water Distribution Channel Outlook
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Store Based
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Non-Store Based
Tonic Water Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
Market Size & Forecast
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 1.8 billion |
| Market Size 2023 | USD 2.014 billion |
| Market Size 2030 | USD 3.9544 billion |
| Compound Annual Growth Rate (CAGR) | 11.90% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019 - 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Packaging Type, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | 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) |
| Key Market Opportunities | Rising alcoholic beverage consumption. |
| Key Market Dynamics | Consumers' growing health consciousness. |
Major Players
Tonic Water Type Outlook (USD Billion, 2019-2030)
Flavored
Non-flavored
Tonic Water Packaging Type Outlook (USD Billion, 2019-2030)
Bottles
Cans
Tonic Water Distribution Channel Outlook (USD Billion, 2019-2030)
Store Based
Non-Store Based
Tonic Water Regional Outlook (USD Billion, 2019-2030)
North America Outlook (USD Billion, 2019-2030)
North America Tonic Water by Type
Flavored
Non-flavored
North America Tonic Water by Packaging Type
Bottles
Cans
North America Tonic Water by Distribution Channel
Store Based
Non-Store Based
US Outlook (USD Billion, 2019-2030)
US Tonic Water by Type
Flavored
Non-flavored
US Tonic Water by Packaging Type
Bottles
Cans
US Tonic Water by Distribution Channel
Store Based
Non-Store Based
CANADA Outlook (USD Billion, 2019-2030)
CANADA Tonic Water by Type
Flavored
Non-flavored
CANADA Tonic Water by Packaging Type
Bottles
Cans
CANADA Tonic Water by Distribution Channel
Store Based
Non-Store Based
Europe Outlook (USD Billion, 2019-2030)
Europe Tonic Water by Type
Flavored
Non-flavored
Europe Tonic Water by Packaging Type
Bottles
Cans
Europe Tonic Water by Distribution Channel
Store Based
Non-Store Based
Germany Outlook (USD Billion, 2019-2030)
Germany Tonic Water by Type
Flavored
Non-flavored
Germany Tonic Water by Packaging Type
Bottles
Cans
Germany Tonic Water by Distribution Channel
Store Based
Non-Store Based
France Outlook (USD Billion, 2019-2030)
France Tonic Water by Type
Flavored
Non-flavored
France Tonic Water by Packaging Type
Bottles
Cans
France Tonic Water by Distribution Channel
Store Based
Non-Store Based
UK Outlook (USD Billion, 2019-2030)
UK Tonic Water by Type
Flavored
Non-flavored
UK Tonic Water by Packaging Type
Bottles
Cans
UK Tonic Water by Distribution Channel
Store Based
Non-Store Based
ITALY Outlook (USD Billion, 2019-2030)
ITALY Tonic Water by Type
Flavored
Non-flavored
ITALY Tonic Water by Packaging Type
Bottles
Cans
ITALY Tonic Water by Distribution Channel
Store Based
Non-Store Based
SPAIN Outlook (USD Billion, 2019-2030)
Spain Tonic Water by Type
Flavored
Non-flavored
Spain Tonic Water by Packaging Type
Bottles
Cans
Spain Tonic Water by Distribution Channel
Store Based
Non-Store Based
Rest of Europe Outlook (USD Billion, 2019-2030)
Rest of Europe Tonic Water by Type
Flavored
Non-flavored
REST OF EUROPE Tonic Water by Packaging Type
Bottles
Cans
REST OF EUROPE Tonic Water by Distribution Channel
Store Based
Non-Store Based
Asia-Pacific Outlook (USD Billion, 2019-2030)
Asia-Pacific Tonic Water by Type
Flavored
Non-flavored
Asia-Pacific Tonic Water by Packaging Type
Bottles
Cans
Asia-Pacific Tonic Water by Distribution Channel
Store Based
Non-Store Based
China Outlook (USD Billion, 2019-2030)
China Tonic Water by Type
Flavored
Non-flavored
China Tonic Water by Packaging Type
Bottles
Cans
China Tonic Water by Distribution Channel
Store Based
Non-Store Based
Japan Outlook (USD Billion, 2019-2030)
Japan Tonic Water by Type
Flavored
Non-flavored
Japan Tonic Water by Packaging Type
Bottles
Cans
Japan Tonic Water by Distribution Channel
Store Based
Non-Store Based
India Outlook (USD Billion, 2019-2030)
India Tonic Water by Type
Flavored
Non-flavored
India Tonic Water by Packaging Type
Bottles
Cans
India Tonic Water by Distribution Channel
Store Based
Non-Store Based
Australia Outlook (USD Billion, 2019-2030)
Australia Tonic Water by Type
Flavored
Non-flavored
Australia Tonic Water by Packaging Type
Bottles
Cans
Australia Tonic Water by Distribution Channel
Store Based
Non-Store Based
Rest of Asia-Pacific Outlook (USD Billion, 2019-2030)
Rest of Asia-Pacific Tonic Water by Type
Flavored
Non-flavored
Rest of Asia-Pacific Tonic Water by Packaging Type
Bottles
Cans
Rest of Asia-Pacific Tonic Water by Distribution Channel
Store Based
Non-Store Based
Rest of the World Outlook (USD Billion, 2019-2030)
Rest of the World Tonic Water by Type
Flavored
Non-flavored
Rest of the World Tonic Water by Packaging Type
Bottles
Cans
Rest of the World Tonic Water by Distribution Channel
Store Based
Non-Store Based
Middle East Outlook (USD Billion, 2019-2030)
Middle East Tonic Water by Type
Flavored
Non-flavored
Middle East Tonic Water by Packaging Type
Bottles
Cans
Middle East Tonic Water by Distribution Channel
Store Based
Non-Store Based
Africa Outlook (USD Billion, 2019-2030)
Africa Tonic Water by Type
Flavored
Non-flavored
Africa Tonic Water by Packaging Type
Bottles
Cans
Africa Tonic Water by Distribution Channel
Store Based
Non-Store Based
Latin America Outlook (USD Billion, 2019-2030)
Latin America Tonic Water by Type
Flavored
Non-flavored
Latin America Tonic Water by Packaging Type
Bottles
Cans
Latin America Tonic Water by Distribution Channel
Store Based
Non-Store Based
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