At 7.6% CAGR, North America Tonic Water Market is Projected to be Worth US$ 804.76 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the North America tonic water market was valued at US$ 448.08 million in 2023 and is expected to reach US$ 804.76 million by 2031, registering a CAGR of 7.6% from 2023 to 2031. Preference for low-sugar tonic water and innovations in flavors are among the critical factors attributed to drive the North America tonic water market growth.

As more consumers become health-conscious and seek to reduce their sugar intake, the demand for low-sugar or zero-sugar beverages has surged. Low-sugar tonic water offers consumers a lighter and healthier option without compromising flavor or quality. Key players in the tonic water market engage in adopting strategic initiatives such as product launches and development to cater to the growing demand for low-sugar tonic water. In August 2021, Nexba made the Nexba Sugar-Free Tonic Water available in two flavors: lime, cucumber, and mint; and classic tonic. The launch was aimed at catering to the growing demand for low-sugar tonic water. Moreover, the rise of wellness-focused lifestyle and dietary trends, such as keto, paleo, and low-carb diets, propels the demand for low-sugar tonic water. Low-sugar tonic water provides a guilt-free option for consumers looking to enjoy their favorite cocktails without the excess calories and sugar content typically found in traditional tonic water. Thus, the surging demand for low-sugar tonic water is expected to become a key trend in the tonic water market in the coming years. This trend is particularly pronounced among millennials and Gen Z consumers, who prioritize health and wellness in their purchasing decisions and seek transparency in product ingredients.

On the contrary, the availability of substitutes hampers the growth of North America tonic water market.

Based on type, the North America tonic water market is bifurcated into plain and flavored. The flavored segment held 73.6% market share in 2023, amassing US$ 329.66 million. It is projected to garner US$ 599.22 million by 2031 to register 7.8% CAGR during 2023-2031.

In terms of category, the North America tonic water market is bifurcated into low/no sugar and regular. The regular segment held 64.3% share of North America tonic water market in 2023, amassing US$ 288.10 million. It is anticipated to garner US$ 507.47 million by 2031 to expand at 7.3% CAGR during 2023-2031.

By end user, the North America tonic water market is bifurcated into on-trade and off-trade. The off-trade segment held 56.4% share of North America tonic water market in 2023, amassing US$ 252.70 million. It is projected to garner US$ 444.00 million by 2031 to expand at 7.3% CAGR from 2023 to 2031.

Based on country, the North America tonic water market is categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 77.0% share of North America tonic water market in 2023. It was assessed at US$ 345.20 million in 2023 and is likely to hit US$ 618.62 million by 2031, registering a CAGR of 7.6% during 2023-2031.

Key players operating in the North America tonic water market are The Coca-Cola Co, Fever-Tree Drinks Plc, Thomas Henry GmbH, Q Tonic LLC, East Imperial Beverage Corp, Britvic Plc, and White Rock Beverages Ltd., among others.

• In March 2023, Topo Chico introduced its latest US product, Topo Chico Mixers, inspired by Topo Chico Mineral Water. These nonalcoholic drinks, available in three flavors: Ginger Beer, Tonic Water, and Club Soda, are crafted with filtered sparkling water, premium ingredients, and herbal flavor notes, providing a subtle yet delicious complement to specialty cocktails.
• In September 2024, Fever-Tree announced its strategic acquisition of the US craft cocktail mixer company Powell & Mahoney in its first-half-year earnings. The acquisition, which includes $0.7 million of cash and $5.2 million in additional funding to settle existing debt, aims to expand its North American presence and broaden its bottling capacity.

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