GVR Report cover U.S. & Canada Tonic Water Market Size, Share & Trends Report

U.S. & Canada Tonic Water Market Size, Share & Trends Analysis Report By Flavor (Flavored, Unflavored), By Product (Light/Low-calorie, Regular), By Type, By Distribution Channel, By Country, And Segment Forecasts, 2021 - 2028

  • Report ID: GVR-4-68039-571-1
  • Number of Report Pages: 85
  • Format: PDF, Horizon Databook
  • Historical Range: 2016 - 2019
  • Forecast Period: 2021 - 2028 
  • Industry: Consumer Goods

Report 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.

U.S. & Canada tonic water market size, by product, 2018 - 2028 (USD Million) 

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.

Flavor Insights

The unflavored tonic water segment held the largest share of over 65.0% in 2020 and is expected to maintain its lead over the forecast period. The product mixed with gin is a popular drink among consumers and also works well with other liquors. It pairs very well with citrus juices and berries and is an excellent alternative to sweeter sodas in some cocktail recipes. The versatility it offers is expected to boost the segment growth during the forecast years.

The flavored tonic water segment is projected to register the highest CAGR of 12.2% from 2021 to 2028. High investments by manufacturers in research and development are also fueling the segment growth. The manufacturers are focused on attracting more consumers by adding new and exciting flavors to regular tonic water. Some of the leading players offering the product are Fentimans and Fevertree Drinks plc (Fever-Tree).

Product Insights

The regular tonic water segment held the largest share of over 60.0% in 2020 and is expected to maintain its lead over the forecast period. It is used to enhance the taste of both alcoholic and non-alcoholic beverages and is comparatively less expensive than low-calorie variants, which, in turn, is expected to fuel the segment growth.

The light/low-calorie tonic water segment is projected to register the fastest CAGR of 12.3% from 2021 to 2028. Several companies are introducing a variety of flavored variants such as lemongrass and mint in this product segment, keeping in mind consumers’ preferences for low-calorie products. For instance, Q Tonics LLC offers diet tonics with zero or low calories. Such factors are expected to drive the segment.

Type Insights

The non-premium tonic water segment held the largest share of over 55.0% in 2020 and is expected to maintain its position over the forecast period. Due to the commercialization of the product by several brands, the demand for premium tonic water is also witnessing rapid momentum as it is exclusively consumed with gin and tonic, whiskey, and rum.

The premium tonic water segment is projected to register the fastest CAGR of 12.3% from 2021 to 2028. Consumers are increasingly mixing this product in their alcoholic beverages and drinks as it has traces of sodium, zinc, and copper, which enhance the water’s nutritional benefits.

Distribution Channel Insights

The hypermarket and supermarket segment held the largest share of over 50.0% in 2020. Supermarkets and hypermarkets form the primary segment for shopping of all kinds of beverages, thereby driving the sales through these channels. Some of the popular brick-and-mortar stores selling the product are Walmart; Walgreens; CVS Pharmacy; Target Brands, Inc.; Kroger; and Safeway.

U.S. & Canada tonic water market share, by distribution channel, 2020 (%)

The online segment is projected to register the fastest growth rate of 12.7% from 2021 to 2028. Several online retail channels are collaborating with local retailers to expand their businesses and target more consumers by providing them with a better online shopping experience. Manufacturers are offering their products across online platforms, such as company-owned portals and e-commerce websites, thereby boosting this segment growth.

Country Insights

In the U.S., the southeast region held the largest revenue share of over 25.0% in 2020. An increasing number of consumers are mixing the product in alcoholic beverages such as gins and vodkas to enhance their taste, which is driving the market in the region.

Canada is expected to exhibit a CAGR of 10.3% from 2021 to 2028. The inclination toward the premium range of blenders has gained traction in Canada. Furthermore, socioeconomic factors such as changing lifestyle in Canada and significant urbanization have a positive impact on the development and consumption of alcoholic drinks and consequently on blenders such as tonic water.

Key Companies & Market Share Insights

The U.S. and Canada market for tonic water is characterized by the presence of well-established players and a few regional players. Several key players in the market are witnessing a high demand for the product, especially among the young generation and working population.

With the product gaining traction across the countries, primarily due to the availability of several variants, manufacturers are focusing on new product launches, collaborations, and the expansion of distribution channels. For instance, Drink Better launched its new quinine-free tonic water containing botanicals such as Scottish heather, Scottish silver birch, yellow gentian, and wormwood in 2018. Such innovative product launches are helping manufacturers drive sales and increase their market share. Some prominent players in the U.S. and Canada tonic water market include: -

  • Keurig Dr Pepper Inc.

  • Zevia

  • Q Tonic, LLC

  • Fever-Tree

  • Fentimans

  • Polar Beverages

  • Boylan Bottling Company

  • Fitch & Leedes

  • White Rock Beverages

  • The Great Gentleman


U.S. & Canada Tonic Water Market Report Scope

Report Attribute


Market size value in 2021

USD 581.4 million

Revenue forecast in 2028

USD 1,198.2 million

Growth Rate

CAGR of 11.9% from 2021 to 2028

Base year for estimation


Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Flavor, product, type, distribution channel, country

Country scope

U.S.; Canada

State scope

Northeast; Southwest; West; Southeast; Midwest; Canada

Key companies profiled

Keurig Dr Pepper Inc.; Zevia; Q Tonic, LLC; Fever-Tree; Fentimans; Polar Beverages; Boylan Bottling Company; Fitch & Leedes; White Rock Beverages; The Great Gentleman; East Imperial Beverage Corporation

Customization scope

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Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the U.S. and Canada tonic water market report on the basis of flavor, product, type, distribution channel, and country:

  • Flavor Outlook (Revenue, USD Million, 2016 - 2028)

    • Flavored

    • Unflavored

  • Product Outlook (Revenue, USD Million, 2016 - 2028)

    • Light/Low-calorie

    • Regular

  • Type Outlook (Revenue, USD Million, 2016 - 2028)

    • Premium

    • Non-premium

  • Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

    • Hypermarket & Supermarket

    • On-trade

    • Online

    • Others

  • Country Outlook (Revenue, USD Million, 2016 - 2028)

    • U.S.

      • Northeast U.S.

      • Southwest U.S.

      • West U.S.

      • Southeast U.S.

      • Midwest U.S.

    • Canada

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