Strategic Overview of the Global Tonic Water Market till 2025


In order to steal a march over their competitors in the global tonic water market, manufacturers are expending money on research and development to come up with new flavors to cater to the different palates of the consumers. This has served to increase competition in the market.

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., Thomas Henry GmbH & Co. KG, Powell And Mahoney LLC, Fevertree Drinks PLC, Dr. Pepper Snapple Group, Inc., Monster Beverage Corporation, MBG International Premium Brands GmbH, East Imperial Superior Beverages, JACK RUDY COCKTAIL CO., Boylan Bottling Co Inc., Casalbor, S.L., LLANLLYR WATER CO LTD, Shasta Beverages, Inc., Sygama SA, Luscombe Drinks, and Bradley’s Tonic Co.

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A new study by Transparency Market Research predicts the global tonic water market to rise at a 6.1% CAGR from 2017 to 2025 to become worth US$2.45 bn by the end of 2025 from US$1.52 bn.

Tonic water finds application in 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 resulting from the influence of social media, the increase in the number of private and office parties, and the 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.

From a geographical standpoint, Asia Pacific is a key market that is expected to grow at the healthy clip – a CAGR of 5.7% from 2017 and 2025 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.

Rapid Industrialization and Urbanization Stoke Growth

At the forefront of driving growth in the global market for tonic water is the rising disposable incomes of people on account of industrialization and economic growth. Besides, industrialization has also led to urbanization, which in turn, has changed the lifestyle of people. This has resulted in increased consumption of alcohol such as gin, vodka, etc. Tonic water is often added to them to make them into a drink. Apart from that, the mushrooming clubs, lounges, and bars are also boosting sales of tonic water.

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Emergence of Various Flavors Drives Demand

Another factor having a positive impact on the global tonic water market is the emergence of tonic water with different flavors in order to attract consumers. This factor will continue to benefit the market in the upcoming years as well. Increasing number of individuals are focusing on their health and trying to cut down the total calorie intake, owing to which unsweetened variants of tonic water is penetrating the shelves of retail stores. This has led to increasing sale of tonic water and is expected to continue over the forecast period.

“One factor expected to dampen uptake is the focus by manufacturers to portray tonic water as a mixer for alcoholic drinks only, although it can be consumed as a soft drink on its own. As a result tonic water may not find space on shelves as a soft drink due to low awareness among consumers,” explains the lead analyst of the report.


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Ganesh Rajput

As one of the lead news writers on CMFE News, Ganesh’s specialization lies in the science and technology domains. His passion for the latest developments in cloud technology, connected devices, nanotechnology, and virtual reality, among others, shines through in the most recent industry coverage he provides. Ganesh’s take on the impact of digital technologies across the science, technology, and business domains gives his writing a fresh and modern outlook.

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