tonic water Market

The tonic water market size is projected to reach US$ 2.01 billion in 2023 to US$ 3.47 billion by 2031; it is estimated to register a CAGR of 7.1% from 2023 to 2031.

Tonic water is a carbonated soft drink, majorly used as a mixer or base with gin, vodka, and other spirits. It is available in a wide range of flavors such as wild berry, elderflower, and bitter lemon. With the changing lifestyles of people and increasing preference for premium drinks, the demand for tonic water is increasing significantly across the US, India, Japan, Australia, the UK, Spain, and Italy, among other developed and developing countries. People in these countries prefer exploring new experiences and tastes, which bolsters the demand for tonic water. Moreover, the increasing trend of cocktail culture and night parties among Gen Z and the millennial population also results in a surged demand for tonic water.

Changing consumer preferences and tastes have been driving the demand for gin across the world. With people exploring and indulging in the diverse flavors of gin, the requirement for complementary mixers to enhance their drinking experience also surges. Tonic water, with its bitter yet refreshing taste, serves as a perfect companion to gin. Thus, a surge in gin's popularity has led to a corresponding rise in the consumption of tonic water. Further, craft gin is gaining significant popularity across the world. As gin enthusiasts become more discerning of the flavor profiles of their spirits, they seek high-quality mixers to elevate their cocktails. Artisanal and small-batch brands have started focusing on catering to the demand for premium tonic water, offering a wide range of botanical-infused and flavored tonic water that complements the nuanced characteristics of craft gin. Moreover, consumers are willing to pay premium prices for superior products that enhance their drinking experience.

Based on type, the tonic water market is divided into plain and flavored. The flavored segment held a larger share of the market in 2023. Flavored tonic water consists of carbonated water, sugar/sweetener, quinine, and different flavoring ingredients such as extracts of elderflower, citrus peels, herbs, berries, lemongrass, and hibiscus that enhance the flavor and aroma of tonic water. Consumers prefer premium flavored tonic water in their drinks. They are also willing to pay higher prices for such products to experiment with newer varieties of gins and cocktails. Therefore, manufacturers develop new flavored tonic water varieties that meet the changing taste preferences of consumers.

A few players operating in the tonic water market include The Coca-Cola Co, Fevertree Drinks Plc, Three Cents Co, Thomas Henry GmbH, Q Tonic LLC, East Imperial Beverage Corp, Fentimans Ltd, Britvic Plc, Bickford & Sons Ltd, White Rock Beverages Ltd and among others. Players operating in the tonic water market focus on providing innovative and healthy products at affordable prices to fulfill customer demand.

The overall tonic water market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers-along with external consultants such as valuation experts, research analysts, and key opinion leaders-specializing in the tonic water market.