U.S. & Canada Tonic Water Market Leading Players Analysis Report 2028

U.S. & Canada Tonic Water Industry Overview

The U.S. and Canada tonic water market size is expected to reach USD 1.20 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 12.0% from 2021 to 2028. Tonic water has gained wide-scale penetration across the U.S. and Canada owing to the growing demand for gin and vodka among consumers. The increasing popularity of tonic water as a drink mixer among consumers is consistently rising in the on-trade as well as the off-trade segment.

U.S. & Canada tonic water market size, by product, 2018 - 2028 (USD Million) 

U.S. & Canada Tonic Water Market Segmentation

Grand View Research has segmented the U.S. and Canada tonic water market on the basis of flavor, product, type, distribution channel, and country:

Based on the Flavor Insights, the market is segmented into Flavored and Unflavored.

  • The unflavored tonic water segment held the largest share of over 65.0% in 2020 and is expected to maintain its lead over the forecast period. The product mixed with gin is a popular drink among consumers and also works well with other liquors. It pairs very well with citrus juices and berries and is an excellent alternative to sweeter sodas in some cocktail recipes. The versatility it offers is expected to boost the segment growth during the forecast years.
  • The flavored tonic water segment is projected to register the highest CAGR of 12.2% from 2021 to 2028. High investments by manufacturers in research and development are also fueling the segment growth. The manufacturers are focused on attracting more consumers by adding new and exciting flavors to regular tonic water. Some of the leading players offering the product are Fentimans and Fevertree Drinks plc (Fever-Tree).

Based on the Product Insights, the market is segmented into Regular and Light/Low-calorie.

  • The regular tonic water segment held the largest share of over 60.0% in 2020 and is expected to maintain its lead over the forecast period. It is used to enhance the taste of both alcoholic and non-alcoholic beverages and is comparatively less expensive than low-calorie variants, which, in turn, is expected to fuel the segment growth.
  • The light/low-calorie tonic water segment is projected to register the fastest CAGR of 12.3% from 2021 to 2028. Several companies are introducing a variety of flavored variants such as lemongrass and mint in this product segment, keeping in mind consumers’ preferences for low-calorie products. For instance, Q Tonics LLC offers diet tonics with zero or low calories. Such factors are expected to drive the segment.

Based on the Type Insights, the market is segmented into Premium and Non-premium.

  • The non-premium tonic water segment held the largest share of over 55.0% in 2020 and is expected to maintain its position over the forecast period. Due to the commercialization of the product by several brands, the demand for premium tonic water is also witnessing rapid momentum as it is exclusively consumed with gin and tonic, whiskey, and rum.
  • The premium tonic water segment is projected to register the fastest CAGR of 12.3% from 2021 to 2028. Consumers are increasingly mixing this product in their alcoholic beverages and drinks as it has traces of sodium, zinc, and copper, which enhance the water’s nutritional benefits.

Based on the Distribution Channel Insights, the market is segmented into Hypermarket & Supermarket, On-trade, Online, Others.

  • The hypermarket and supermarket segment held the largest share of over 50.0% in 2020. Supermarkets and hypermarkets form the primary segment for shopping of all kinds of beverages, thereby driving the sales through these channels.
  • The online segment is projected to register the fastest growth rate of 12.7% from 2021 to 2028. Several online retail channels are collaborating with local retailers to expand their businesses and target more consumers by providing them with a better online shopping experience. Manufacturers are offering their products across online platforms, such as company-owned portals and e-commerce websites, thereby boosting this segment growth.

U.S. & Canada Tonic Water Country Outlook

  • U.S.
  • Canada

Key Companies Profile & Market Share Insights

The U.S. and Canada market for tonic water is characterized by the presence of well-established players and a few regional players. Several key players in the market are witnessing a high demand for the product, especially among the young generation and working population.

Some of the prominent players operating in the U.S. & Canada tonic water market include,

  • Keurig Dr Pepper Inc.
  • Zevia
  • Q Tonic, LLC
  • Fever-Tree
  • Fentimans
  • Polar Beverages
  • Boylan Bottling Company
  • Fitch & Leedes
  • White Rock Beverage
  • The Great Gentleman
  • East Imperial Beverage Corporation

Order a free sample PDF of the U.S. & Canada Tonic Water Market Intelligence Study, published by Grand View Research.

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