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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