Nitro-Infused Beverages Market - Analysis and Forecast, 2020-2026

Global Nitro-Infused Beverages Market
Nitro-infused beverages were first introduced in the market in the early 2010s. The market is still in the nascent stage, and there is a huge potential for growth in the coming years. The appeal of nitro-infused drinks is three-fold as they have a textural appeal, a taste appeal, and a visual appeal. With increasing research and development activities, there are other beverages that are being experimented with nitro-infusion, such as cocktails and smoothies.

Global Nitro-Infused Beverages Industry Overview
The global nitro-infused beverages market is expected to reach $48.50 million by 2026, with a CAGR of 21.66% during the forecast period 2021-2026. High growth in the market is expected to be driven by the fact that infusion of nitrogen greatly improves the taste and texture of the beverage. Moreover, with the increase in disposable income, there is expected to be a further surge in demand for nitro-infused beverages. Consumption of nitro-infused beverages also helps reduce sugar intake, and it does not require any additional sugar. Infusion of nitrogen adds a tinge of sweetness to the drink, thereby reducing the requirement for additional sugar. A major factor driving the nitro-infused beverages market is the change in consumer preference and the growing demand for newer products in the market. Consumers are willing to spend the extra dime for the premium taste and mouthfeel of the product.

Impact of COVID-19 on Global Nitro-Infused Beverages Market
The supply chain of the majority of the industries across the globe got impacted due to the COVID-19 pandemic, including the nitro-infused beverages market. Economic slowdown, job losses, and a lot of uncertainties related to the next paycheck did affect the sales of nitro-infused beverages. However, the sales of nitro-infused beverages remained stable owing to a surge in online sales. E-commerce played a major role in ensuring the delivery of products to consumers’ doorstep. Moreover, supermarkets/hypermarkets, specialty stores, and convenience stores started offering their products online, ensuring that consumers don’t run out of their day-to-day products.


Market Segmentation

Global Nitro-Infused Beverages Market by Distribution Channel
The global nitro-infused beverages market is dominated by supermarkets/hypermarkets. Supermarkets/hypermarkets carry different products by various brands, all under one roof, making it convenient for the consumers to shop for their daily needs. Existing, as well as newer brands, are looking to increase their shelf presence in the supermarkets/hypermarkets as they garner more footfalls in comparison to specialty and convenience stores.

Global Nitro-Infused Beverages Market by Product
The global nitro-infused beverages market based on product type is dominated by coffee. This dominance is due to the growing consumer preference for coffee over any other beverage. Nitro-infused coffee is usually made from cold brew coffee which is then infused with nitrogen gas. One of the key benefits of nitro-infused coffee is that it contains more than 30% caffeine in comparison to regular drip coffee.

Global Nitro-Infused Beverages Market by Region
North America generated the highest revenue of $10.2 million in 2020 in the market, which is attributed to the technological advancements in the region. The nitro-infused beverages market is expected to grow in the North America region due to the presence of multiple nitro-infused beverages marketers in the region. Marketers are continuously innovating and introducing newer products in the market in order to cater to their regular customers and add newer consumers to their database. The region is expected to witness a high growth rate of 23.81% during the forecast period.

Key Market Players and Competition Synopsis
Alfred, Bona Fide Nitro Coffee and Tea, Califia Farms, Caveman Coffee Co., Dunkin’, East Forged, H&H Products Company, King’s Row Coffee, La Colombe Coffee Roasters, McDonald’s Corporation, Nitro Beverage Co., PepsiCo, RISE Brewing Co., Starbucks, The Coffee Bean & Tea Leaf

The companies that are profiled in the report have been selected based on the selective pool of players, primarily Tier-1 (which hold 50%-60% of the market), mid-segment players (comprising 30%-40% share), and small and emerging companies (hold the balance 10%-20% share), based on various factors such as product portfolio, annual revenues, market penetration, research, and development initiatives, along with a domestic and international presence in the nitro-infused beverages market.

Market Report Coverage - Nitro-Infused Beverages

Market Segmentation

• Distribution Channel: Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, and Online
• Product: Coffee, Tea, Soft Drinks, and Others

Regional Segmentation

• North America: U.S., Canada, and Mexico
• Europe: Germany, Italy, France, and Rest-of-Europe
• U.K.
• Middle East and Africa: South Africa, and Rest-of-Middle East and Africa
• China
• Asia-Pacific: India, Japan, Australia, South Korea, and Rest-of-Asia-Pacific
• South America: Brazil, and Rest-of-South America

Market Growth Drivers

• Enhancement in the Taste and Texture of Beverages
• Growing Preference for R-T-D Beverages Amongst Millennials
• Increasing Disposable Income in Emerging Economies

Market Challenges

• Growing Health Awareness Among Consumers
• High Price Points of Nitro-Infused Beverages

Market Opportunities

• Expansion in Developing Countries
• Marketing and Correct Positioning to Increase Customer Base
• Increasing Demand for Mix of Flavor, Hydration, and Energy

Key Companies Profiled
Alfred, Bona Fide Nitro Coffee and Tea, Califia Farms, Caveman Coffee Co., Dunkin’, East Forged, H&H Products Company, King’s Row Coffee, La Colombe Coffee Roasters, McDonald’s Corporation, Nitro Beverage Co., PepsiCo, RISE Brewing Co., Starbucks, The Coffee Bean & Tea Leaf

How This Report Can Add Value
Product/Innovation Strategy: The product segment helps the reader in understanding the different types of nitro-infused beverages market potential globally. Moreover, the research study provides the reader with a comprehensive understanding of different product types (coffee, tea, soft drinks, and others). Additionally, comprehensive coverage on different distribution channels (supermarkets/hypermarkets, convenience stores, specialty stores, online) required for a successful distribution set-up for nitro-infused beverages has also been added in the study.

Growth/Marketing Strategy: The nitro-infused beverages manufacturers have opted for new product development and partnership strategy as a way of establishing dominance in the nitro-infused beverages market. Marketing strategies will aid the reader in gaining an understanding of the revenue-generating strategies implemented by the players operating in the global nitro-infused beverages market. For instance, in January 2021, La Colombe Coffee Roasters partnered with Whole Foods to offer its products at two locations, Pearl Street Whole Foods in Boulder and Union Station Whole Foods in Denver. With this partnership, La Colombe Coffee Roasters aims at increasing its shelf presence.

Key Questions Answered in the Report:

• What is the estimated global nitro-infused beverages market size in terms of revenue for the forecast period 2021-2026, and what is the expected compound annual growth rate (CAGR) during the forecast period 2021-2026?
• What are the key trends, market drivers, and opportunities in the market pertaining to nitro-infused beverages?
• What are the major restraints inhibiting the growth of the global nitro-infused beverages market?
• What kinds of new strategies are being adopted by the existing market players to expand their market position in the industry?
• What is the competitive strength of the key players in the global nitro-infused beverages market based on an analysis of their recent developments, product offerings, and regional presence?
• What is the competitive benchmarking of the key nitro-infused beverages companies based on the analysis of their market coverage and market potential?
• How much revenue is each segment expected to generate during the forecast period, along with the growth percentage? The segments are as follows:
  • Product (Coffee, Tea, Soft Drinks, and Others).
  • Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online)
  • Region (North America, U.K., Europe, Asia-Pacific, China, Middle East and Africa, and South America)
• What are the types of players and stakeholders operating in the market ecosystem of nitro-infused beverages, and what is their significance in the global market?