At 8.1% CAGR, Asia Pacific Tonic Water Market is Projected to be Worth US$ 736.22 Million by 2031, says Business Market Insights

According to Business Market Insights’ research, the Asia Pacific tonic water market was valued at US$ 393.73 million in 2023 and is expected to reach US$ 736.22 million by 2031, registering a CAGR of 8.1% from 2023 to 2031. Innovations in flavors and preference for low-sugar tonic water are among the critical factors attributed to drive the Asia Pacific tonic water market growth.

Consumers are increasingly seeking premium and unique experiences in everyday beverages. In response to the evolving consumer expectations, tonic water manufacturers across the world engage in product development and innovation to attract a larger clientele and enhance their market position. Innovative flavors such as elderflower, cucumber, and grapefruit appeal to a wider range of consumers. For instance, in March 2022, The Coca-Cola Company introduced new grapefruit-flavored bottled tonic water to its Schweppes portfolio. The launch aimed to cater to the growing demand for fruity flavored tonic water. With the burgeoning interest in natural and botanical-based products, in line with the growing trend of healthy eating and drinking, consumers seek beverages made with natural, high-quality ingredients. They are also looking for lighter and more floral tonic water varieties.

On the contrary, the availability of substitutes hampers the growth of Asia Pacific tonic water market.

Based on type, the Asia Pacific tonic water market is bifurcated into plain and flavored. The flavored segment held 69.8% market share in 2023, amassing US$ 274.84 million. It is projected to garner US$ 519.08 million by 2031 to register 8.3% CAGR during 2023–2031.

In terms of category, the Asia Pacific tonic water market is bifurcated into low/no sugar and regular. The regular segment held 62.3% share of Asia Pacific tonic water market in 2023, amassing US$ 245.12 million. It is anticipated to garner US$ 451.91 million by 2031 to expand at 7.9% CAGR during 2023–2031.

By end user, the Asia Pacific tonic water market is bifurcated into on-trade and off-trade. The off-trade segment held 60.3% share of Asia Pacific tonic water market in 2023, amassing US$ 237.38 million. It is projected to garner US$ 436.01 million by 2031 to expand at 7.9% CAGR from 2023 to 2031.

Based on country, the Asia Pacific tonic water market is categorized into China, Japan, India, Australia, South Korea, and the Rest of Asia Pacific. Our regional analysis states that the Rest of Asia Pacific captured 31.1% share of Asia Pacific tonic water market in 2023. It was assessed at US$ 122.61 million in 2023 and is likely to hit US$ 206.29 million by 2031, registering a CAGR of 6.7% during 2023–2031.

Key players operating in the Asia Pacific tonic water market are The Coca-Cola Co, Fever-Tree Drinks Plc, Thomas Henry GmbH, East Imperial Beverage Corp, Britvic Plc, and Bickford & Sons Ltd., among others.

• In October 2022, Fever-Tree signed a three-year distribution deal with Asahi in Japan, allowing the company to distribute its products in the country from January. The deal is a significant market opportunity for the company, aiming to capitalize on rising consumer demand for long mixed and premium adult soft drinks.
• In September 2023, Britvic Mixers launched its Indian Tonic Water in a multipack can format for the first time in retail, catering to the growing demand for at-home occasions. The 330ml cans are available in classic and zero-sugar variants.

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