Market Size of Tonic Water Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.29 Billion |
| Market Size (2029) | USD 1.85 Billion |
| CAGR (2024 - 2029) | 7.45 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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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.
Tonic Water Industry Segmentation
Tonic water is a carbonated drink in which quinine gets dissolved. Tonic water is used as a mixer with gin or other alcoholic beverages. Product type, distribution channels, and geography segment the tonic water market. Based on product type, the market is segmented into regular tonic water, low-calorie tonic water, and 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, online retail stores, and other distribution channels. The market is geographically segmented into North America, Europe, Asia-Pacific, South America, the Middle East, and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD million).
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| Regular Tonic Water | |
| Low Calorie Tonic Water | |
| Slimline Tonic Water |
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Tonic Water Market Size Summary
The tonic water market is experiencing significant growth, driven by its evolution from a medicinal beverage to a popular mixer in alcoholic drinks, particularly gin. Originally used for its quinine content to combat malaria, tonic water now features lower quinine levels and a variety of flavors, catering to a broader audience. The market is characterized by innovation, with companies introducing products like the "Sunset Tonic" by Capi and Malfy Gin, which highlight natural ingredients and unique flavor pairings. The rising disposable income and modernization trends are further propelling the market, as tonic water gains popularity as a mixer and a standalone beverage. The demand is also fueled by health-conscious consumers seeking low-sugar or sugar-free options, prompting manufacturers to develop products that align with these preferences, such as Buzzed's energy tonic water and Daylesford Organic's flavored variants.
In Europe, where gin and tonic are staple cocktails, the market is expanding due to innovative product launches and a focus on health-oriented options, including calorie-free and sugar-free variants. The availability of tonic water in supermarkets and retail stores, alongside the growing number of pubs, bars, and lounges, contributes to market growth. Key players like Fever-Tree and Fentimans are diversifying their product lines to include a range of mixers for various spirits, enhancing their market presence. The introduction of new flavors and packaging options, as seen with Schweppes and Bickford & Sons, reflects the industry's response to consumer demand for premium and artisanal products. This trend is supported by a growing preference for premium-priced mixers, driven by consumers' willingness to invest in high-quality, innovative beverages.
Tonic Water Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Regular Tonic Water
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2.1.2 Low Calorie Tonic Water
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2.1.3 Slimline Tonic Water
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2.2 Distribution Channel
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2.2.1 On-Trade
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2.2.2 Off-Trade
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2.2.2.1 Supermarkets/Hypermarket
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2.2.2.2 Convenience stores
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2.2.2.3 Online Retail Stores
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2.2.2.4 Other Distribution Channels
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 United Kingdom
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2.3.2.2 Germany
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2.3.2.3 France
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2.3.2.4 Russia
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2.3.2.5 Italy
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2.3.2.6 Spain
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 India
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2.3.3.2 China
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2.3.3.3 Japan
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle-East and Africa
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2.3.5.1 South Africa
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2.3.5.2 Saudi Arabia
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2.3.5.3 Rest of Middle-East and Africa
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Tonic Water Market Size FAQs
How big is the Tonic Water Market?
The Tonic Water Market size is expected to reach USD 1.29 billion in 2024 and grow at a CAGR of 7.45% to reach USD 1.85 billion by 2029.
What is the current Tonic Water Market size?
In 2024, the Tonic Water Market size is expected to reach USD 1.29 billion.
