Nitro-Infused Beverages Market Analysis

Nitro-Infused Beverages Industry Insights

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