Savvy participants in the global tonic water market are pitching flavored products to customers in order to up demand and sales. To that end, they are pouring money into research and development of innovative products.
Majorly fuelling the global market for tonic water is the rising disposable income of people on account of industrialization and economic growth. Rapid urbanization too plays a role in stoking demand for it has resulted in increasing intake of alcohol to which tonic water is often added. Apart from that the surging popularity of social media and the internet has had a positive influence on the market too.
As study by Transparency Market Research projects the global tonic water market to pull in a revenue of US$2.45 bn by 2025-end by rising at a CAGR of 6.1% from 2017 to 2025. The report estimated the market was worth US$1.52 bn in 2017.
The global tonic water market can be segmented based on different parameters. Depending upon application, for example, it can be divided into direct consumption and alcoholic drinks. Of them, the segment of alcoholic drinks grosses most of the revenue in the market on account of the increasing alcohol intake worldwide. This, in turn, has resulted from the changing lifestyles leading to increasing social gatherings and parties, and the popularity of social media and internet, and the growing perception that alcoholic drinks relaxes the mind. The tonic water market in alcoholic drink segment is forecasted to clock a higher CAGR of 6.6% between 2017 and 2025 to become worth US$1.87 bn by 2025, while in direct consumption segment is predicted to rise at a 4.7% CAGR in the same period to attain a value of US$578.4 mn by 2025.
Depending upon the sales channel again, the global market for tonic water can be divided into direct sales and retail sales. The retail sales segment is further divided into modern trade, convenience stores, online retailing, and other retailing formats. The direct sales segment is predicted to expand at a higher CAGR of 7.5% CAGR from 2017 to 2025, while the retail sales segment is expected to register a 5.4% CAGR in the forecast period.
Asia Pacific is another key market for tonic water which is expected to rise at a steady CAGR of 5.7% during the period between 2017 and 2027 on the back of rapid industrialization and urbanization – the two phenomena that have increased the disposable incomes of people and changed their lifestyles leading to more alcohol intake. Latin America is expected to expand at a CAGR of 4.8% because of changing lifestyles, rising urbanization and increasing per capita income in this region.
Some of the prominent participants in the global tonic water market are Fentimans Ltd., The Coca-Cola Company, Diageo Plc., Q Drinks, White Rock Products Corp., Powell And Mahoney LLC, Fevertree Drinks PLC, Monster Beverage Corporation, MBG International Premium Brands GmbH, East Imperial Superior Beverages, JACK RUDY COCKTAIL CO., Boylan Bottling Co Inc., Casalbor, S.L., Sygama SA, Luscombe Drinks, and Bradley’s Tonic Co.