U.S. & Canada Tonic Water Market is expected to witness significant growth during the forecast period

Posted on 2022-09-15 by researchinsights in Industrial // 0 Comments

U.S. & Canada Tonic Water Industry Overview

The U.S. and Canada tonic water market size was valued at USD 487.0 million in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 12.0% from 2021 to 2028.

The growing cocktail culture across the globe is the key sales promoter of tonic water. It is primarily used as a drink mixer in cocktails, especially gin and vodka. The combination of the slightly bitter taste of tonic water with lime and vodka is one of the popular cocktail combinations consumed across the U.S. and Canada, which is expected to boost product consumption. The COVID-19 pandemic has had an adverse effect on the market. The shutting down of restaurants, clubs, pubs, and hotels led to a continuous decline in food and beverage sales. The closure of bars, restaurants, and pubs across the world has reduced product demand. However, the household demand for products soared during the lockdown. Due to multiple lockdowns imposition in the U.S. and Canada since March 2020, consumers have been creating their cocktails at homes, which has boosted the overall consumption from e-commerce platforms.

Gather more insights about the market drivers, restrains and growth of the U.S. & Canada Tonic Water Market

The growth of the U.S. and Canada market for tonic water can be attributed to the rising demand for premium spirits, the resurgence of cocktail trends among youngsters, and the working population across the U.S. and Canada. Consumers are increasingly spending on premium blends, cocktails, and other innovative blends, and as a result, the scope for premium tonic water has gained traction.

The gender analysis demonstrates that the adoption of the products is an emerging trend and is more prevalent among females than in males. According to a 2019 Fentimans report, it is estimated that 63.3% of the female population prefer premium soft drinks and mixers such as tonic water and consider it necessary in their cocktails, whereas only 36.7% of the male population are inclined toward tonic water as they prefer hard drinks outside the home.

The product popularity among women is very high as compared to men. This is attributed to the increasing women’s workforce participation across the globe. Additionally, social variables such as income growth, the growing number of working professionals in emerging states of the U.S., and rapid urbanization have a favorable impact on the production and consumption of alcoholic beverages, and subsequently blenders.

Millennials and younger generations are the major consumers of gin and tonic water. Consumers are looking for premium products with innovative flavors, package designs, and brands. Over the past few years, premium tonic water made with natural ingredients has been gaining traction among consumers. Cocktail consumers are shifting to brands with excellent quality and new flavor content, which is expected to drive the product demand.

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