Market Trends of Tonic Water Industry
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 characters. As a result, there is a growing preference for premium-priced mixers, including tonic water. The cocktail trend resurgence in emerging economies boosted growth for the super-premium tonic water category. Due to the rise in obesity and diabetes problems, consumers want their drinks to be low or zero sugar with good taste.
The young population became more health conscious and avoided having products with high carbohydrate content. In addition, diet tonic water is gaining increasing acceptance among consumers owing to its lesser sugar content than 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, in May 2022, the Famous Gloucestershire arm, Daylesford Organic, launched organic tonic water manufactured in the United Kingdom. The new organic tonic waters come in four flavors - light, cucumber, wild elderflower, and Damascena rose - and are made with dandelion instead of quinine.
Europe Dominates the Market
Europe is famous for its Gin consumption. Gin and tonic are one of the most famous cocktails in Europe. Tonic water is renowned in the region for its flavors and multiple uses in different beverages. The market for tonic water is growing in Europe owing to the new and innovative product launches by market players. It is available in different flavors, prices, and packaging. As consumers are focused on health, different calorie-free and sugar-free tonic waters are also available in the market.
Furthermore, the tonic water availability in supermarkets and retail stores is also a factor in the market's growth. For instance, the on-trade value of Fever Tree Mixers and tonic water was 25.1% in 2021. The demand for tonic water increased due to the number of pubs, bars, and lounges. For instance, in June 2022, Fever Tree opened a new bar and cafe at Edinburgh Airport. The drinks menu includes selected spirits alongside beer, wine, and bubbles.
