Tonic Water (or Indian tonic water) is a carbonated soft drink in which quinine is dissolved. Quinine is an alkaloid used for the treatment of malaria. It was started as a bubbly drink carbonated water but is now available with added flavors, fruit extracts, and sugar to boost flavor. Tonic water has the ability to glow under ultraviolet light due to the presence of quinine.
Tonic water is consumed directly or mixed with alcoholic drinks. The revenue is more from alcohol generated tonic drinks on account of increasing alcohol intake worldwide resulting from the influence of social media, and the perception that alcohol drinks relax the mind.
Key players in global tonic water industry are Q Drinks, 1724 Tonic Water, Sodastream, Whole Foods, Watson Group, Fentimans, Nestle, Seagram’s, White Rock, Hansen’s, Fever Tree, Shasta Tonic Water, East Imperial, Thomas Henry, Jack Ruddy Cocktail, Johnstonic, Dr Pepper Snapple Group, and Bermondsey among others.
Global Tonic Water Market has witnessed a CAGR of 6.1% from 2017 to 2025 with the revenue projected to reach USD 2.45 billion by 2025, from USD 1.52 billion. On the other hand, sales of tonic water have also increased to 13% in 2017, from the past year 2016. Tonic water has seen an increase with the increase in sales of Fever Tree. The sales rose by 65% from USD 33.09 million to USD 54.72 million.
North America, Latin America, Asia-Pacific, Europe, and the Middle East and Africa are the key regions where the growth of tonic water has been analyzed to grow at a higher rate. Currently, Europe and North America hold the largest market share in the global tonic water market. It is expected that these two regions will hold the market share of 67% by 2025.
The Asia Pacific is estimated to grow at a highest rate and expected to go up to 5.7% during the period.
Pros And Cons Of Tonic Water
Moreover, tonic water has proved to be beneficial for health as it helps to relax muscles, reduce stress, gain weight, maintains the level of calories in the body, increases productivity, boosts brain power etc. However, tonic water has some side effects associated with serious health problems, such as bleeding problems, kidney damage, abnormal heartbeat, and severe allergic reactions.
Despite enormous health benefits, ingredients used in quinine is bad for human health. Some people are extremely sensitive to quinine drug, which can cost them a headache, rash, ringing in the ears, nausea, dizziness, and blurred vision. Some serious reactions are rare but can be life-threatening such as blood disorders, which can lead to hemorrhaging. Having serious side-effects, FDA America banned doctors to prescribe quinine as a medicinal drug and also limits the quinine content in water tonic to 83 ppm (83 mg per liter if calculated by mass).
Potential Growth Opportunities
Increasing urban population coupled with factors such as increasing disposable income, modernization, and increase in the number of clubs, lounges, and bars are expected to boost the sales of tonic water market over the forecast period. The Launch of different flavors in order to attract customers and to grow curiosity among individuals to try new flavors are key anticipated factors to increase demand for flavored tonic water.
What We Analyzed?
Tonic Water market is a trending industry over the globe and it is expected to grow at a higher CAGR throughout the forecast period. North America is dominating the market and will continue to dominate the tonic water market over the coming years. There’s a huge scope for the tonic water market to grow, the future certainly looks bright for this 2000-year-old drink.
Tonic water Market has a wide scope from alcohol generated tonic drinks. The demand for gin with tonic water is excessively high, particularly from the Europe region where alcohol is highly consumed.