Nitro-Infused Beverages Market Synopsis
The global market for Nitro-Infused Beverages estimated at USD 30.12 Million in 2023 is projected to reach a revised size of USD 72.78 Million by 2030, growing at a CAGR of 22.50% over the period 2023-2030.
Nitro-infused beverages are characterized by the addition of nitrogen gas, which imparts a distinctive texture and flavor to the drink. By introducing nitrogen gas at high pressure, tiny bubbles are created, resulting in a creamy and velvety mouthfeel.
- This process is commonly applied to beverages like coffee, tea, and beer. Nitro coffee, in particular, has gained significant popularity due to its nitrogen infusion, which enhances the natural sweetness of the coffee while reducing its bitterness, resulting in a more harmonious and balanced taste experience.
- Nitrogen Infusion in which Nitrogen gas is added to the beverage under high pressure. Unlike carbon dioxide, which is commonly used for carbonation, nitrogen gas creates smaller bubbles that give the drink a creamy and smooth texture
- Cascading Effect is when the nitro-infused beverage is poured or dispensed, it exhibits a visually appealing cascading effect. This is due to the release of nitrogen gas and the interaction with the liquid, creating a mesmerizing display of tiny bubbles settling from the top to the bottom.
- Overall, the addition of nitrogen gas to beverages creates a visually captivating and indulgent drinking experience, along with a creamy texture and flavor enhancement, making nitro-infused beverages a popular choice for consumers seeking something different and enjoyable.
Top Key Players Involved Are:
"Stumptown Coffee Roasters (US), RISE Brewing Co. (US), Sandows Coffee Limited (UK), Black Medicine Coffee Co (Scotland), JOJO's Chocolate (US), Hopewell Brewing Co. (US), Caveman Coffee Co. (US), Wandering Bear Coffee (US), La Colombe Coffee Roasters (US), Rishi Tea (US), The Alchemist Brewery (US), Bona Fide Brewing Company (US), Madrinas Coffee (US), Chameleon Cold-Brew (US), Lucky Jack Nitro Cold Brew Coffee (US), Rishi Tea & Botanicals (US), Joe's Nitro Coffee (US), Raaka Chocolate (US), Rumble Beverage Company (Canada), Station Cold Brew Coffee Company (Canada) and Other Major Players."
Nitro-Infused Beverages Market Trend Analysis
Increasing Demand for Unique and Innovative Beverages
- The nitro-infused beverages market is experiencing growth and gaining popularity due to the increasing demand for unique and innovative beverages. Here are some key factors driving the market:
- Nitro-infused beverages offer a distinct creamy and velvety texture that sets them apart from traditional carbonated drinks. This unique mouthfeel creates a more indulgent and enjoyable drinking experience, appealing to consumers seeking novel sensory experiences.
- Nitrogen infusion can enhance the flavor profiles of various beverages. In the case of nitro coffee, for example, the nitrogen gas reduces the perception of bitterness and acidity while enhancing the natural sweetness, resulting in a smoother and more balanced taste. This flavor enhancement appeals to consumers looking for a more refined and enjoyable beverage experience.
- Nitro-infused beverages are often associated with a premium and artisanal image. The addition of nitrogen gas and the resulting cascading effect and creamy texture elevate the perception of these beverages, positioning them as higher-end products. This appeals to consumers seeking premium and gourmet options in their beverage choices.
- Overall, the increasing demand for unique and innovative beverages, driven by consumer preferences for enhanced textures, flavors, and experiences, is a key factor propelling the growth of the nitro-infused beverages market.
Rising Expenditure Capacities of Consumers
- The rising expenditure capacities of consumers present a significant opportunity for the nitro-infused beverages market. As consumers' disposable incomes increase, they are more willing to spend on unique, premium beverages that offer an enhanced drinking experience.
- Nitro-infused beverages are often positioned as premium products due to their unique texture, flavor, and visual appeal. As consumers have more discretionary income, they are willing to pay a premium for these specialty beverages, contributing to market growth.
- Consumers with higher spending capacities are more likely to seek out novel and indulgent experiences, making them a target market for nitro-infused beverages.
- Many nitro-infused beverages, such as nitro cold brew coffee or nitro tea, are positioned as healthier alternatives to traditional carbonated drinks or sugary beverages. Consumers with higher expenditure capacities often prioritize health and wellness, making them more receptive to these offerings.
- Hence, the rising expenditure capacities of consumers create an opportunity for the nitro-infused beverages market to cater to their evolving preferences for premium, experiential, and healthier beverage options. By capitalizing on these trends and offering innovative products, the market can attract and retain consumers with higher spending capacities.
Segmentation Analysis of The Nitro-Infused Beverages Market
Nitro-Infused Beverages Market segments cover the Product Type and Distribution Channel. By Product Type, the Soft Drink segment is Anticipated to Dominate the Market Over the Forecast period.
- Soft drinks, including carbonated beverages and non-alcoholic options, have always been popular among consumers. The addition of nitrogen infusion to soft drinks adds a unique twist to the traditional offerings, enhancing their appeal and creating a differentiated product in the market.
- Soft drinks have a strong presence in the global beverage market and are consumed by a wide range of demographics. This existing recognition and familiarity with soft drinks make it easier for nitro-infused soft drinks to gain acceptance and capture a significant market share.
- The non-alcoholic beverage market is experiencing significant growth as consumers, including those who choose not to consume alcohol, seek sophisticated and flavorful alternatives. Nitro-infused soft drinks fit well within this segment, providing an exciting and indulgent option for consumers who want a unique drinking experience without alcohol.
Source – Statista
As the above data, the global consumption of soft drinks in the year of 2020 was 309.7 billion liters, which increased in the year of 2021 to 326.2 billion liters, which shows the strong demand for soft drinks by consumers in the market.
Regional Analysis of The Nitro-Infused Beverages Market
Asia Pacific is Expected to Dominate the Market Over the Forecast Period.
- The Asia Pacific region has a large and rapidly expanding beverage market. Factors such as population growth, urbanization, and increasing disposable incomes are driving the demand for a variety of beverages, including nitro-infused options.
- Consumers in the Asia Pacific region are increasingly looking for innovative and unique beverages to enhance their drinking experiences. Nitro-infused beverages, with their creamy texture, visual appeal, and enhanced flavors, align well with these evolving consumer preferences.
- The café culture, including specialty coffee shops and tea houses, has been flourishing in many countries across the Asia Pacific region. Nitro coffee and nitro tea have become popular in these establishments, attracting consumers seeking premium and indulgent beverage options.
- As awareness about nitro-infused beverages grows, more companies are entering the market and expanding their distribution networks in the Asia Pacific region. This results in increased availability of nitro-infused options across various retail channels, including supermarkets, convenience stores, and online platforms.
Covid-19 Impact Analysis on Nitro-Infused Beverages Market
- The COVID-19 pandemic has had a mixed impact on the nitro-infused beverages market. The pandemic has disrupted global supply chains, affecting the sourcing and availability of raw materials, packaging, and ingredients required for nitro-infused beverages. This has led to potential challenges in production and distribution for market players.
- Ready-to-drink nitro-infused beverages, such as canned nitro coffee and nitro tea, have witnessed increased demand during the pandemic. Consumers seeking convenient and grab-and-go options have turned to these products, further driving their market growth.
- Overall, the COVID-19 pandemic has presented both challenges and opportunities for the nitro-infused beverages market. While the initial impact may have been negative, the market has shown resilience and adaptability, leveraging e-commerce platforms and evolving consumer needs. As the situation stabilizes and consumer confidence returns, the market is expected to recover and continue its growth trajectory.
Top Key Players Covered in The Nitro-Infused Beverages Market
- Stumptown Coffee Roasters (US)
- RISE Brewing Co. (US)
- Sandows Coffee Limited (UK)
- Black Medicine Coffee Co (Scotland)
- JOJO's Chocolate (US)
- Hopewell Brewing Co. (US)
- Caveman Coffee Co. (US)
- Wandering Bear Coffee (US)
- La Colombe Coffee Roasters (US)
- Rishi Tea (US)
- The Alchemist Brewery (US)
- Bona Fide Brewing Company (US)
- Madrinas Coffee (US)
- Chameleon Cold-Brew (US)
- Lucky Jack Nitro Cold Brew Coffee (US)
- Rishi Tea & Botanicals (US)
- Joe's Nitro Coffee (US)
- Raaka Chocolate (US)
- Rumble Beverage Company (Canada)
- Station Cold Brew Coffee Company (Canada) and Other Major Players.
Key Industry Developments in The Nitro-Infused Beverages Market
In April 2023, Logan Square Skate Park Overhaul Got a Boost as Revolution, Hopewell Brew ‘Logan Export’ Lager Raised Cash. Logan Export is a lager created by Hopewell and Revolution breweries. Sales supported a $1.7 million effort to revamp the dilapidated Logan Boulevard skate park.
In March 2022, New York-based coffee brand Wandering Bear announced that it has raised a $5 million funding round backed by existing investors. The new capital arrived as the company seeks to scale its online e-commerce business, which has become its main focus following a post-pandemic pivot.
Global Nitro-Infused Beverages Market
2016 to 2021
Market Size in 2022:
USD 30.12 Mn.
Forecast Period 2022-30 CAGR:
Market Size in 2030:
USD 72.78 Mn.
By Product Type
By Distribution Channel
- Convenience Stores
- Speciality Stores
- Online Stores
- North America (Us, Canada, Mexico)
- Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)
- Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)
- Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New Zealand, Rest Of APAC)
- Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)
- South America (Brazil, Argentina, Rest Of SA)