Global Tonic Water Market To Reach Value Of US$2.45 Billion
Wednesday, October 25th, 2017 | 616 Views
The global tonic water market is forecast to rise at a compound annual growth rate (CAGR) of 6.1 percent to reach US$2.45 billion by 2025, according to market intelligence agency Transparency Market Research.
The market is predicted to reach a value of US$1.52 billion by the end of 2017.
Manufacturers are expending money on research and development to come up with new flavours to cater to the different palates of the consumers. This has served to increase competition in the market.
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 percent between the forecast period—from 2017 to 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 percent from 2017 and 2025.
At the forefront of driving growth in the global market for tonic water is the rising disposable incomes of people on account of industrialisation and economic growth. Moreover, industrialisation has also led to urbanisation 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 growing number of clubs, lounges, and bars are also boosting sales of tonic water.
Another factor having a positive impact on the global tonic water market is the emergence of tonic water with different flavours in order to attract consumers. This factor will continue to benefit the market in the upcoming years as well.
An increasing number of individuals are focussing on their health and trying to cut down 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.