U.S. & Canada Tonic Water Market Growth & Trends

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.

The consumption of alcoholic drinks in the countries is gradually rising during social gatherings and tonic water has become a vital ingredient for cocktails, making it fit for all kinds of social occasions-formal and informal, which is boosting its consumption across the U.S. and Canada.

The unflavored flavor segment held the largest share in 2020 and is expected to maintain its lead over the forecast period. Unflavored tonic water and gin is a popular combo among consumers; however, it also works well with other liquors. The versatility offered by tonic water is expected to boost the growth of the unflavored tonic water segment.

The hypermarket and supermarket distribution channel segment captured the largest share in 2020. The wide availability of several versions of tonic water such as premium and flavored at these stores encourages consumers to purchase them through this segment. The U.S. and Canada market for tonic water is consolidated with the presence of a large number of international players and a few regional players.

U.S. & Canada Tonic Water Market Report Highlights

  • The Southeast U.S. emerged as the largest market in 2020. Consumers are mixing tonic water in alcoholic beverages such as gins and vodkas to enhance their taste, which is driving the market in the region
  • The light/low-calorie product segment is projected to register the fastest CAGR of 12.3% from 2021 to 2028. In the U.S., where obesity has become a health crisis, consumers are increasingly opting for low-calorie tonic water
  • The premium tonic water segment is expected to witness significant growth during the forecast period. The demand for premium tonic water is witnessing rapid momentum across the countries as it is exclusively consumed with gin and tonic, whiskey, and rum
  • After the outbreak of COVID-19, consumers have been creating higher-end cocktails at homes due to multiple lockdowns, which has boosted the overall consumption from e-commerce channels as they offer D2C services