Tonic Water Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The global tonic water market is projected to increase at a CAGR of 7.1%, during the forecast period, 2022-2027.

Owing to the outbreak of the COVID-19 pandemic, there has been a considerable impact on the tonic water industry. The on-trade segment has especially been impacted, since bars, restaurants, pubs, breweries have been shut due to the lock-down and customer visits are entirely restricted. Comparatively, the impact was less likely felt on the off-trade sales channel since consumers stock-piled beverages in the initial stages of the lockdown.

Tonic water is a carbonated soft drink in which quinine is dissolved. Originally Tonic water was used as a medicine against malaria but now it has significantly lower quinine content and is consumed for its distinctive bitter flavor. It is often used in alcoholic drinks, particularly in gin and tonic.The market is driven by the rising disposable income of people due to modernization, promotion of tonic water as a mixer with alcohol, increasing popularity of tonic water because of availability of different variants and also due to the surging popularity in social media and internet which has led to the increased sale of tonic water.

Scope of the Report

The global tonic water market is segmented by product type and distribution channels. Based on product type, the market is segmented into regular tonic water, low-calorie tonic water, slimline tonic water. Based on the distribution channel, the market is segmented into off-trade and on-trade. The off-trade segment is further classified into supermarkets/hypermarkets, convenience stores, and others. Based on geography, the study provides an analysis of the tonic water market in the emerging and established markets across the globe, including North America, Europe, Asia-Pacific, South America, and Middle East & Africa.The report offers market size and forecast in value terms in USD million for all the above segments.

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Key Market Trends

Increasing Demand for Low-Sugar and Naturally Flavored Tonic Water

Consumers have developed a strong preference for premium spirits and are willing to spend money on innovative products with a distinct character. 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. In addition, diet tonic water is gaining increasing acceptance among consumers owing to its lesser sugar content as compared to regular, diet variants that possess fewer calories or carbohydrates. Companies are also bringing in new naturally flavored water in this product segment, intending to cater to the consumers’ specific needs for diet consciousness and taste factors. For instance, Sodastream offers naturally flavored diet tonics with zero calories.

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