Nitro-Infused Beverages Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Nitro-Infused Beverages Market Size

Nitro-Infused Beverages Market Trends & Growth Drivers

Usage of Nitrogen over CO2 Is Key Market Trend

• The key trend in the market is the usage of nitrogen in beverages instead of the conventional carbon dioxide.
• N2 leads to less oxidation and foaming, which is crucial for wineries to prevent color change, flavor and aroma loss, and preservation issues.
• Similarly, breweries are increasingly using nitrogen gas to prevent beer spoilage and extend the product’s shelf life.
• In these applications, the gas is used to bind with extra oxygen and remove it from the barrel or bottle.
• The is also used to clean the hoses that transport these beverages between containers and barrels, to decrease the oxygen content.
• For this same reason, nitrogen consumption is rising in craft and microbreweries, which are the new face of the urban nightlife.
• These places produce their own unique beers in limited quantities for immediate consump7tion in the draught form, along with a delectable selection of food, music, and chic ambiance.
• Many such places use 30% CO2 and up to 70% N2 in the brewing and bottling processes. Further, the nitro-infused beer is transported from the barrel/keg to the tap under 100% N2.
• Another discernable effect of this gas on beverages is a smooth, velvety texture, unlike the bite and fizz of CO2.
• As a result, beverage producers are increasingly installing nitrogen generators at their plants to use freshly produced gas.

Growing Preference for Ready-to-Drink Beverages Drives Market

• Ready-to-drink beverages are gaining appeal in all regions, particularly in North America and Europe, and among ever-expanding demographics.
• Low alcohol by volume (ABV) and low-calorie offerings, rise in demand for canned beverages, a greater emphasis on natural ingredients and sophisticated flavors, and social media-friendly brand identities have all helped ready-to-drink beverages fit into customers' increasingly health-conscious diets.
• In addition, the packaging of the drinks is characterized by bright colors, eye-catching pictures, simplistic design, and thin cans.
• These make canned ready-to-drink beverages more accessible while also making them appear more premium than normal coffee or tea items.
• Further, canned and bottled packaging allows purchasers to drink with minimum bother at festivals or at the beach.
• This means that if the producers get the packaging design right, consumers are more likely to picture them in brand-aligned and aspirational circumstances, which increases their brand value.
• Moreover, in order to establish supremacy in the market, companies have chosen strategies such as innovative product launches and collaborations.
• Marketing tactics will help companies comprehend revenue-generating techniques employed by participants in the nitro-infused beverages market.

Nitro-Infused Beverages Market Analysis

Product Type Insights

The coffee category holds the largest market share in 2024, of 55%. Nitrogen gas gives the drink a creamy, thick texture, and it also generates a thick frothy head like a beer. Moreover, nitrogen gas decreases acidity and some bitterness in coffee, making it more appealing to non-coffee drinkers. Thus, these factors drive the market growth in this category.

Soft drinks are predicted to witness the highest growth rate, of 18%, during the forecast period. This can be ascribed to the increasing consumption of soft drinks in both developed and developing nations, the expanding demand for cold brew, and the rising consumer buying power throughout the globe. Furthermore, the growing popularity of nitro-infused beverages among millennials worldwide is expected to drive the development and expansion of the industry. Thus, firms are releasing new nitro soft drinks with distinct flavors and textures to broaden their product line.

Moreover, in the field of mixology, the use of nitrogen is continuously increasing. Nitrogen, when infused in beverages, improves not only the consistency but also the aromatics of the beverage. Nitrogen gas is an alternative to typical carbon dioxide, which gives soft drinks their fizz and offers various advantages, particularly for individuals who suffer from IBS, bloating, or heartburn.

The report offers insights into these product types:

• Coffee (Largest Category)
• Tea
• Soft Drinks (Fastest-Growing Category)
• Alcoholic Drinks
• Others

Distribution Channel Insights

Supermarkets/hypermarkets lead the nitro-infused beverages market, followed by convenience stores. All nitro-infused beverages, including coffee, tea, and soft drinks, are available in canned form at supermarkets. When compared to local marketplaces, supermarkets have made shopping considerably easier and more comfortable. With the rising consumer purchasing power, the number of people shopping in supermarkets is increasing.

In addition, customers prefer convenience stores over specialist retailers. This factor is increasing the purchases of nitro-infused beverages at convenience stores. Also, products manufactured by big companies such as Nitro Beverages Co. and RISE Brewing Co. have their own convenience stores.

The online stores category is expected to grow at the highest CAGR, of 20%, from 2025 to 2032. This will be due to the rising availability and usage of the internet and the widespread use of online channels to purchase nitro-infused drinks. During the lockdown period and even to a large extent presently, key e-commerce sites such as Amazon, Target, and Walmart were the main distributors of the merchandise.

The following distribution channels have been considered:

• Supermarkets/Hypermarkets (Largest Category)
• Convenience Stores
• Specialty Stores
• Online Stores (Fastest-Growing Category)
• Others

Regional Analysis

In 2024, North America has the highest revenue in the market, of USD 50 million, followed by Europe. This is due to the presence of top industry players in the region and companies are investing in R&D operations and launching new products to obtain a competitive advantage over their competitors.

APAC is the fastest-growing market for nitro-infused drinks, with an expected CAGR of 21%. Although the regional sector is still in its initial stage, the region has enormous development potential. Companies operating in the market have started increasing their presence in the region by capitalizing on this potential. For instance, Starbucks and McDonald's Corporation, both located in the U.S., have begun providing nitro-infused beverages in APAC, which is predicted to increase the sales of these products in the region.

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.

Moreover, France contributes a significant revenue share to the European market. The key factors driving demand for nitro-infused beverages in the country include the rising disposable income and changing customer preferences and lifestyles.

Below is the regional breakdown of the market:

• North America (Largest Regional Market)
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • U.K. (Fastest-Growing Country Market)
  • Germany (Largest Country Market)
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Africa (Largest Country Market)
  • Saudi Arabia
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Nitro-Infused Beverages Market Share

• The market is fragmented because of a large number of providers.
• Although there are a few large companies in the market, an increasing number of local coffeehouses, teahouses, and microbreweries are infusing their beverages with nitrogen.
• To attract customers, they are experimenting with new flavors and textures, especially in soft drinks. Because of the relative ease of producing such beverages, the number of startups in this space is rising every year.
• Many providers, especially breweries and wineries, now use onsite nitrogen generators.
• Additionally, online channels have made it easy for newer companies to reach customers and register substantial sales.

Nitro-Infused Beverages Market Company News

• In April 2024, Lion Brewery launched a nitro-infused stout in a can, in a bid to compete with Guinness.
• In February 2024, Funkin Cocktails expanded its line of nitro-infused beverages with a nitro-infused blue raspberry martini, targeted at Gen Z.
• In February 2023, Nitro Beverage Lounge opened at the Avenir apartment buildings at 502 West Washington Avenue in Madison, Wisconsin. This coffee shop-cum-cocktail bar spans 2,100 square feet and offers seating for up to 90 people.