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Tuesday 17 October 2017

Global Tonic Water Market: North America and Europe Most Lucrative Regions

Tonic water is not your everyday water, as it contains quinine that is now used as medicine for malaria and helps against nighttime leg cramps. In the recent past, the popularity of tonic water as escalated as consumers are now refraining from much more harmful alcoholic drinks and depending on tonic water. All dynamics put together, a fresh business and commerce study by Transparency Market Research (TMR) has estimated that the demand in the global tonic water will increment at a CAGR of 6.1% during the forecast period of 2017 to 2025. The report projects the opportunities in the global tonic water market to swell up to US$2.45 bn by 2025, considerably up from its evaluated worth of US$1.52 bn in 2017.


Which factors will ensure a healthy future for tonic water market?

Rapid industrialization and urbanization, particularly in the emerging economies in Asia Pacific, is the primary driver of the global tonic water market. In countries such as China, India, and Japan, disposable incomes of citizens has multiplied in the recent past as a result of economic growth. In addition to that, rapid industrialization has aided to urbanization that has changed radically improved the lifestyle of large masses of families. Consequently, clubs, lounges and bars have mushroomed and the consumption of alcohol such as vodka and gin has escalated. Since tonic water is frequently mixed to them to make them into a drink, the demand for the same is expanding. Moreover, product innovation by companies operating in this market has led to tonic water that offer different flavors in order to meet the evolving demands of the consumers.

Incremented number of people who are now focused on their health and want to reduce their daily calorie intake. This has led to increasing sale of tonic water and is expected to continue over the forecast period. On the other hand, the perception of tonic water only as a mixer for alcoholic drinks is obstructing the prosperity of this market, as it can be consumed as a soft drink on its own. Currently, tonic water are not put on shelves of a retail store as a soft drink owing to low awareness among consumers.

Which market segments are more profitable?

Application-wise, the TMR report segments the global tonic water market into alcoholic drinks and direct consumption. Currently, the alcoholic drinks segment is constituting the maximum demand and is expected to remain most profitable throughout the forecast period of 2017 to 2025, during which the demand for the same is expected to expand at a CAGR of 6.6%, significantly more than that of direct consumption, which is expanding at a CAGR of 4.7%. By 2025, the alcoholic tonic water segment is anticipated to be worth US$1.87 bn. On the basis of sales channel, the tonic water gains considerably more demand for direct sales than retail sales. The retail sales segment is expected to register a 5.4% CAGR in the forecast period, whereas the direct sales segment is predicted to expand at a higher CAGR of 7.5% CAGR from 2017 to 2025.

Which region is showing greater promise for future?


Geographically, the TMR report has divided the global tonic water market into Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa. In the present scenario, North America and Europe are the most lucrative regions, projected to collectively serve 67% of the overall demand in the global market. On the other hand, Asia Pacific tonic water market is projected to exhibit a CAGR of 5.7% during the same forecast period.

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