2014-2016F saw a notable increase in tonic consumption in Western Europe, with growth of 3%. Strong contributions were noted in France (6%), Belgium (8%) and Spain (5%), with Spain overtaking the UK as the number one tonic water market in Western Europe. Spain’s multipacks and innovative new flavour combinations helped put it ahead of the game, spurred by increased on-premises consumption.

The premiumisation trend in gin is changing the profile of the tonic water market. Fever-Tree (Fever-Tree) has been a key mover and shaker with strong branding and highlighting of its natural quinine content tapping into consumer interest in natural ingredients. In the UK, Schweppes (TCCC) has also now designed a selection of premium mixers with new innovations in flavour to establish unique experiences within the tonic and spirits industry. Ginger-flavoured tonic waters have been one innovation under the Schweppes brand, including ginger and cardamom, promoting its use with whiskey, moving away from the traditional gin and tonic.

"Developments in botanicals have also escalated the growth of tonics as companies have found fresh and interesting twists on the classic gin and tonic."

Developments in botanicals have also escalated the growth of tonics as companies have found fresh and interesting twists on the classic gin and tonic using ingredients such as pink pepper and hibiscus (Schweppes). Fentimans (Fentimans Ltd) and Bloom (Bloom) together have designed a pre-mixed gin and tonic which incorporates a lemongrass infused botanical tonic water with a floral dry gin, bringing an extra flourish to the premium beverage.

Premium pack designs for newly introduced tonic brands have become prominent in the expansion of premium goods. Fever-Tree, for example, teamed up with a variety of gin distribution companies to create the ‘Ultimate Gin and Tonic Tasting Selection’ incorporating smaller bottles of its tonic range, which can be found throughout major shopping outlets.

GlobalData beverage analyst Gregory Dillon predicts that “there will be continued progress for premium tonics and their alcoholic counterparts as consumer interest in craft products continues to grow”.

This information is based on findings from Canadean Quarterly Beverage Tracker November 2016.