In 2021, nitro-infused beverages contribute $69.17 million, and it is projected to generate $366.07 million in revenue in 2030, advancing at a rate of 20.3% from 2021 to 2030. It is attributed to the increasing demand for nitro-infused beverages which includes changing consumer preferences, high demand for newly launched products, and growing disposable income of the population.
In addition, customers are required to pay extra for flavored and textured products. Thus, the rising customer preference for these products drives the demand for nitro-infused drinks.
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North America captures the largest share of the industry. Europe and the regional industry of North America are predicted to experience rapid growth in the near future. It is ascribed to the presence of key industry players and increased investments in the R&D operations of the company. Along with this, the companies are focusing on launching new products to stay on the competitive edge.
In addition, APAC witnesses the fastest growth in the industry. The regional sector is in the initial stage, holding a vast potential for future growth. Companies operating in the nitro-infused drinks industry are focusing on expanding themselves in the region with increased investments. For example, both McDonald’s and Starbucks based in the U.S., have entered the APAC to geographically expand themselves and increase their consumer base.
Sales of Nitro-Infused Coffee Generated Highest Revenue
Under the product type segment, coffee captures a significant share of the industry, and it is projected to rise at a rate of 20.7% in the coming years. The use of nitrogen provides the coffee with a thick and creamy texture, along with creating a thick frothy head similar to beer. Moreover, nitrogen gas also reduces acidity and bitterness in coffee. It makes it more appealing for non-coffee drinkers.
Furthermore, the nitro-based soft drinks demand is projected to grow at a significant rate, of 20.9%, in the coming future. It is led by rising soft drink consumption in both emerging and developed economies. It leads to increasing demand for cold brew, and surging buying power of consumers across the world.
Moreover, the usage of nitrogen is rising in the field of mixology. The infusion of nitrogen in the beverages enhances the aromatics and consistency of the beverages. In addition, nitrogen gas is used as a substitute for carbon dioxide, and it offers soft drinks with fizz and numerous other benefits, more specifically for individuals that are likely to suffer from bloating, IBS, or heartburn.
Supermarkets/Hypermarkets Dominate the Market
The rising demand for the ready-to-drink beverage in all regions, more specifically in Europe and North America, and other emerging economies. For canned beverages, the demand for low alcohol volume, and low-calorie offerings is higher.
Moreover, the natural ingredients and sophisticated flavors, along with social media-friendly brand identities help in customizing the ready-to-drink beverages into health-conscious diets.
The major companies operating in the industry are Caveman Coffee Co., Nitro Beverage Co., Starbucks Corporation, Monster Energy Company, Left Hand Brewing Co., Rise Brewing Co., and Quivr.
Therefore, the increased investments in the research & development operations, along with the shifting rising disposable income of the population boosts the industry growth.
Growing Preference for Ready-to-Drink Beverages Amongst Millennials
Compared to their non-carbonated counterparts, nitro drinks taste creamier and have a velvety texture. The drink’s “nitrogen” bubbles are created by pressurizing the liquor using a nitro tank before it is poured.
The beverage can be given nitrogen to give it a thicker, silkier texture. Carbonated beverages, coffee, beer, or tea are frequently used as the foundation for nitro beverages. The global nitro-infused beverages market will reach $366.07 million by 2030.
Germany Generated the Highest Revenue in Europe
Germany held the largest revenue share, of 33.3%, in the European market in 2021. This is because coffee is the most popular nitro-infused beverage in the country. Changing customer lifestyles and their requirements are also expected to boost the market in Germany. In addition to this, the growing population, the increasing purchasing power, and state-of-the-art infrastructure for high productivity in the country are also driving the demand for nitro-infused beverages.
The main factors driving the need for nitro-infused beverages are shifting customer preferences, rising interest in recently released items, and rising disposable income.
Customers are also willing to pay more for items with exceptional flavors and textures. As a result, the demand for nitro beverages is driven by the expanding customer choice for such goods.