Refreshing tonic water, containing diluted quinine, a bitter-tasting alkaloid derived from the bark of the cinchona tree, is a popular mixer in the U.S. for both alcoholic beverages and newer formulations like the coffee tonic.
It doesn’t seem to enjoy the same popularity in Mexico, but it can be found in local beverages that have spread across the globe. What’s happening in the tonic beverage market in the U.S. and Mexico City, and how can you get in on the latest trends?
The Wide World of Tonics
The beauty of tonic water is that it’s so versatile. In recent years, beverage brands like Schweppes, Fever-Tree, and Fentiman’s have not only created low- or no-calorie versions but added a range of botanical flavors like lemon, grapefruit, and elderflower.
Most used in drinks like gin and tonic, vodka tonic, and whiskey tonic, this sparkling water can also be paired with a range of other beverages for surprising and delightful results. Case in point is the coffee tonic.
Rise of the Coffee Tonic
Also referred to as a cold brew tonic, this chilled beverage is a simple blend of tonic water, ice, and cold brew, espresso, or iced coffee. The pairing of tonic and coffee is bright and refreshing, and additions like sugar and vanilla help temper bitter tones.
Originating in Sweden in 2007, this zesty beverage first spread through Scandinavia and then started to make its way across the globe. It wasn’t until recently that it started gaining popularity in the U.S., but coffee tonics are beginning to show up in restaurants like Swedish espresso bar Konditori, with locations in New York City and Philadelphia.
The combination of caffeine, carbonation, and chilled liquid is not only refreshing, but coffee experts predict it could be the next big thing in the cold brew market.
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U.S. Tonic Trends
Traditional tonic remains a popular choice in European and U.S. markets. However, low-calorie options are increasingly in demand, and flavored iterations are taking up more shelf space.
At the Spirit Awards Tonic & Mixer Masters 2024, Franklin & Sons won the Master & Taste Master Medals in the flavored tonic water category for savory Rosemary & Black Olive Tonic Water, while gold medals were awarded for flavors like yuzu, cucumber, elderflower, and rhubarb.
Mexico City Tonic Trends
Water is a bit of a sore subject in Mexico City, with reservoirs drying up and many residents forced to purchase both potable water and somewhat less pure liquid for cleaning purposes. Bottled and canned options abound, and among them is tonic water.
While tonic water isn’t particularly popular, Topo Chico is, and it has gained ground stateside, especially since being purchased by Coca-Cola in 2017. Even so, Mexico City has been the birthplace of at least one tonic-based beverage that took the world by storm — the refreshing Salmoncito.
This complex and bittersweet aperitif is a take on the gin and tonic that adds color from Campari and zesty flavor from grapefruit. Although it strays from the popular local flavor profile of tequila and smoky mezcal, it remains a hit in its native Mexico City and has spread to other cities and countries across the globe.
Consumer Reception and Market Impact
As of 2024, the tonic beverage market is estimated at $1.29 billion, with growth projected to hit $1.85 billion by 2029, a compound annual growth rate (CAGR) of 7.45%.
While Europe dominates this beverage space, perhaps because of the popularity of gin on the other side of the pond, the U.S. market also enjoys high market CAGR when it comes to tonic beverages.
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Those in the beverage industry looking to incorporate tonic water or innovate with this foundational ingredient will want to find inventive ways to add complexity by pairing tonic with unlikely flavor profiles like coffee.
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