The global tonic water products market was valued at USD 6.3 billion in 2022 and is projected to expand at a CAGR of 5.2% from 2023 to 2030. Tonic water is a refreshing beverage that is gaining popularity among consumers due to its unique taste and health benefits. It is made from carbonated water, citric acid, sugar, and quinine. The growing demand for low-calorie food and drinks is one of the major factors driving the growth of the tonic water market.

Moreover, the growing trend of consuming tonic water for mixology is propelling the market growth. The increasing popularity of gin, vodka, and other alcoholic drinks is further driving the demand for tonic water. The growing demand for organic and low sugar tonic water is also expected to fuel the market growth. Nowadays, several brands are launching tonic water with natural ingredients and low sugar content. For instance, in July 2021, Fever-Tree launched a new range of zero sugar tonic water.

The increasing demand for premium and craft tonic water is also expected to drive the market growth. The emerging trend of craft tonic water is helping the market players to differentiate their products from the competitors and to tap into new customer segments. For instance, in January 2021, Q Tonic launched a new range of organic tonic water. The organic products are made from certified organic agave and organic lime juice.

Furthermore, the increasing demand for ready-to-drink tonic water is also aiding the market growth. The ready-to-drink tonic water has a longer shelf life, which makes it convenient for customers to purchase and consume. Moreover, the introduction of new flavors is also driving the market growth. For instance, in October 2021, Fever-Tree launched a new range of flavored tonic water, including cucumber and elderflower, raspberry and rhubarb, and lemon and ginger flavors.

In addition, the increasing number of product launches and strategic collaborations among the key players are also driving the market growth. The strategic collaborations between the market players and the local retailers are helping to expand the presence of the tonic water products in the market. For instance, in May 2021, Fever-Tree partnered with UK-based drinks distributor Matthew Clark to expand its presence in the UK market.

Tonic water products dominated the market and accounted for a share of around 43.2% in 2022. The growth of the market is attributed to the increasing demand for tonic water products across the globe. The demand for tonic water products has increased due to its use in various applications such as mixers and cocktails, along with its refreshing taste and health benefits. Furthermore, the growing demand for tonic water from the foodservice industry due to the rise in the number of international restaurants, bars, and pubs has also contributed to the growth of the market.

The demand for flavored tonic water is also increasing, primarily due to the growing popularity of flavored beverages. The flavored tonic water is available in various flavors such as lemon, lime, orange, and other exotic flavors. Moreover, increasing health consciousness among consumers has forced them to opt for flavored tonic water products, as they contain a fewer number of calories, which is driving the market for flavored tonic water.

The supermarkets and hypermarkets segment captured the major share of over 45.7% in 2022. With the rising popularity of tonic water products, supermarkets and hypermarkets are emerging as the preferred destination for buyers. This is mainly due to the availability of various brands, flavors, and size of tonic water in these stores. Moreover, the presence of discounts, offers, and other promotional activities in these stores are further driving the demand for tonic water.

The online segment is anticipated to expand at the highest CAGR of 11.9% over the forecast period. The increasing penetration of the internet and the rising adoption of digital services have allowed consumers to purchase tonic water products online. Additionally, the surge in the number of e-commerce websites and mobile applications is also fueling the demand for tonic water products on online platforms. Furthermore, the presence of discounts and promotional activities on online platforms further boosts the sales of these products.

The regular segment accounted for the largest revenue share of 81.4% in the year 2022. The rise in the demand for regular tonic water products is driven by the increasing consumption of carbonated drinks and the growing health consciousness among consumers. The availability of tonic water products in various flavors, such as lemon, lime, orange, and grapefruit, from various brands such as Schweppes and Fever-Tree has increased the demand for tonic water. Moreover, manufacturers are focusing on providing low-calorie tonic water products to target health-conscious consumers. For instance, in 2021, Schweppes launched Schweppes Slimline Tonic Water, a no-calorie tonic water product, in the U.K.

The diet segment is anticipated to expand at the highest CAGR of 10.9% over the forecast period. The growing demand for zero-calorie tonic water products is primarily driving the growth of the segment. Increasing health awareness among consumers has increased the demand for diet tonic water as consumers perceive it to be healthier. Furthermore, manufacturers are introducing new flavors in diet products to increase the consumption of tonic water. For instance, in 2020, Fever-Tree launched its Diet Indian Tonic Water in the U.K. with a hint of natural lemon and lime. This product was the first diet tonic water from the company.

Europe dominated the market and accounted for the largest revenue share of over 40.7% in 2022. The presence of a large number of manufacturers in the region is driving the growth of the market. The increasing consumption of alcoholic beverages, such as vodka and gin, is further boosting the demand for tonic water in this region. The new product innovations, such as naturally flavored tonic water, are also contributing to the growth in this region. For instance, in November 2021, Fever-Tree launched a new range of naturally flavored tonic water in the U.K.

Asia Pacific is expected to witness the fastest growth in the coming years. Factors such as rising disposable incomes and growing demand for flavored tonic water are driving the growth of the market in the region. In addition, the increasing popularity of alcoholic beverages in countries such as India, China, and Japan is also supporting the growth of the market. For instance, in March 2021, Schweppes launched a new range of flavored tonic water in India.

In this part of the tonic water products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your tonic water products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a tonic water products business comes from sales of the product. Here you will find a list with a description of other possible sources of profit such as fundraising, the sale of merchandise, and other marketing efforts.

Projecting Expenses

In this section, all the regular expenses related to keeping the tonic water business running will be described. The list of operating expenses includes raw materials, wages, shipping and transport costs, insurance policies, advertising, and others.

Some of the key companies operating in the tonic water market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In June 2022, Schweppes launched a new range of tonic waters with added fruit flavours.

– In August 2022, Fever-Tree launched a new range of tonic waters infused with botanical extracts.

– In October 2022, Q Tonic launched a range of zero-sugar tonic water.

Some of the prominent players in the tonic water market include:

– Schweppes
– Fever-Tree
– Q Tonic
– Thomas Henry
– 1724 Tonic Water
– Fentimans
– Canada Dry
– Fever-Tree Premium Indian Tonic Water
– Coca-Cola
– Dr. Pepper Snapple Group

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global tonic water products market based on product type, distribution channel, and region:

1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)

– Regular Tonic Water
– Diet Tonic Water
– Flavored Tonic Water
– Other

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What Factors are Driving Demand for Tonic Water?
[A]: The demand for tonic water is being driven by the increasing consumption of alcoholic beverages, such as gin and vodka, as well as the growing popularity of mixed drinks, such as gin and tonic. In addition, the rising awareness of health benefits associated with tonic water has been a key factor driving the market. Tonic water is known to contain quinine, which has been linked to the prevention of malaria and other diseases.

[Q]: What are the Key Players in the Tonic Water Market?
[A]: The key players in the tonic water market include Schweppes, Fever-Tree, Canada Dry, Q Mixers, Thomas Henry, Fentimans, and Gosling’s.

[Q]: What are the Major Regions in the Tonic Water Market?
[A]: The major regions in the tonic water market include North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

[Q]: What are the Trends in the Tonic Water Market?
[A]: The growing popularity of craft tonic water is one of the key trends in the market. This type of tonic water is produced by small, independent companies and has unique flavors and ingredients. Additionally, an increasing number of manufacturers are offering organic or natural tonic water, which is expected to further fuel the market growth.

[Q]: What is the Potential of Product Innovation?
[A]: Product innovation is expected to have a positive impact on the tonic water market. Manufacturers are introducing products with unique flavors and ingredients, such as ginger, cucumber, and raspberry, to attract new customers. Additionally, there is a growing focus on new packaging formats, such as cans and PET bottles, to increase the shelf life of the product and enhance convenience.