Tonic Water Market Size

Tonic Water Market Analysis

The Tonic Water Market size is estimated at USD 1.29 billion in 2024, and is expected to reach USD 1.85 billion by 2029, growing at a CAGR of 7.45% during the forecast period (2024-2029).

Originally Tonic water was used as a medicine against malaria, but now there is significantly lower quinine content and is consumed for its distinctive bitter flavor. It is often used in alcoholic drinks, particularly in gin. But now tonic water is available as a regular drink with low quinine levels and different flavors. The market players have been innovating tonic water with low quinine, corn syrup, high fructose sugar, and various flavors. For instance, in September 2022, the Australian beverage company Capi partnered with Malfy Gin to launch the all-natural ingredient "Sunset Tonic." The tonic pairs with Malfy Gin's refreshing citrus-flavored gin and makes Gin-Tonic called Malfy Sunset. Additionally, the rising disposable income drives the market due to modernization, the tonic water promotion as a mixer with alcohol, and the increasing tonic water popularity, which is surging demand.

Tonic water is growing in many regions owing to its health benefits. Due to quinine content, tonic water is used for malaria treatment. It reduces leg cramps, works as a stress buster, works as a substitute for alcohol, causing a reduction in alcohol consumption, and re-energizes due to high sugar content. Due to the increased alcohol consumption on casual occasions and parties, the tonic water requirement also increased. Since consumers have become more health conscious, demand for low-sugar or sugar-free beverages increased. Tonic water manufacturers are making products according to consumer needs and wants. For instance, in February 2022, the United Kingdom-based functional beverage brand Buzzed launched a new energy tonic water powered by natural caffeine, pure blossom honey, and stevia.