Nitro-Infused Beverages Market Size, Share, Analysis, Trends, Growth, 2032

Nitro-Infused Beverages Industry Prospective:

The global nitro-infused beverages market size was worth around USD 104.23 million in 2023 and is predicted to grow to around USD 537.8 million by 2032 with a compound annual growth rate (CAGR) of roughly 20.00% between 2024 and 2032.

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Nitro-Infused Beverages Market: Overview

Nitro-infused beverages are drinks in which nitrogen gas is added through the process of nitro infusion. The process helps in generating small bubbles in the liquid and helps improve its overall texture. Nitro-infused beverages are different from carbonated drinks since the bubbles formed in the former type are significantly smaller as compared to the latter type. Additionally, the solubility of nitrogen is comparatively less than carbon dioxide and hence it does not easily dissolve in liquid. Another advantage of nitro infusion instead of carbon dioxide infusion is the less acidic nature of nitrogen. This allows the drink to achieve a more velvety texture and less carbonated.

The process of nitro-infusion deals with forcing the gas into a liquid using a high-pressure system. Although nitro-infused beverages have gained more popularity in recent times, the use of nitrogen gas in liquid can be traced to the early 1900s. The primary use of nitrogen in gas is the overall improvement in the texture of the drink thus making the process more appealing for drinks such as tea and coffee. The popularity of nitro-infused beverages is growing rapidly as more beverage producers are actively working toward developing the overall technology around nitro infusion. During the forecast period, the positive market trends are expected to deliver high revenue.

Key Insights:

• As per the analysis shared by our research analyst, the global nitro-infused beverages market is estimated to grow annually at a CAGR of around 20.00% over the forecast period (2024-2032)
• In terms of revenue, the global nitro-infused beverages market size was valued at around USD 104.23 million in 2023 and is projected to reach USD 537.8 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising number of consumers in the food & beverages (F&B) sector
• Based on distribution channel segmentation, offline was predicted to show maximum market share in the year 2023
• Based on product segmentation, nitro coffee was the leading segment in 2023
• On the basis of region, North America was the leading revenue generator in 2023

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Nitro-Infused Beverages Market: Growth Drivers

Rising number of consumers in the food & beverages (F&B) sector will drive the market growth rate

The global nitro-infused beverages market is expected to grow due to the rising number of consumers in the food & beverages (F&B) industry. The rapidly increasing population rate, steady rise in spending capabilities, growing job opportunities, and the changing way of living are driving the demand for more variants of food and beverages. In addition to this, customer expectations from food companies are regularly evolving. They are always seeking different products thus encouraging food & beverage makers to consistently invest in researching & developing new product categories, flavors, and textures. Additionally, regional governments are focusing on new areas of investment to boost food & beverage production with the aim to meet the rising food demand.

In March 2024, the Western Australian Government announced an investment of USD 470,700 in the beverage voucher and agrifood sector. As per official records, the total investments in the European food industry in 2021 was €24.5 billion. Such high investment rates can be witnessed across the globe thus helping the makers of the nitro-infused beverages industry grow further in the coming years. Moreover, infusing beverages with nitrogen helps in improving the overall shelf life of the product. It is one of the key parameters for the growing adoption of nitro infusion technology since products are taking longer to reach the customers driven by factors such as disruptions in the supply chain and changing international trade relationships.

Increasing launch of new beverages infused with nitrogen gas will also impact the market growth rate

The changing consumer preferences and the need to constantly innovate product offerings from the end of beverage makers have led to an increase in the number of new product variants launched across the globe. In February 2022, a leading player in the food & beverages sector Pepsi, announced the launch of Nitro Pepsi. The company has invested heavily in nitrogen technology to improve the taste and look of the drink thus enhancing customer drinking experience. In January 2022, Nexba, a leading beverage maker in the Australian market, announced the launch of nitro-infused iced teas thus driving the global nitro-infused beverages market.

Nitro-Infused Beverages Market: Restraints

Limited customer awareness about nitro infusion technology will restrict the market growth rate

The global industry for nitro-infused beverages may fail to generate significantly higher revenue due to limited customer awareness about the availability of products made using nitro-infusion technology. Additionally, customers are more comfortable with consuming traditionally popular carbonated drinks and they may take time to adapt to the new drink variants thus slumping the overall product adoption rate. Moreover, the cost of nitro-infused beverages is higher as compared to traditional drinks thus further restricting the market growth rate.

Nitro-Infused Beverages Market: Opportunities

Expansion in new territories and emerging economies may generate high growth opportunities

The global nitro-infused beverages market can tap into more growth opportunities by expanding into new territories, especially emerging economies that are registering a change in consumer buying patterns. The rising access to Internet technology and social media platforms should be leveraged by food businesses to generate higher consumer awareness in new territories. Revenue streams can be further expanded by customizing beverages as per local preferences. Another key aspect that can make nitro-infused beverages more lucrative is packaging. Offering products across sizes including large volumes and on-the-go alternatives could be beneficial in the long run.

Growing sales of food & beverages through online portals has a higher growth scope

The food & beverages industry is evolving rapidly with the introduction of new technologies. For instance, the e-commerce sector has helped the industry overcome geographical growth limitations. The growing sale of food products and beverages through online channels will directly impact the demand in the global industry for nitro-fused beverages. In 2022, the global food e-commerce sector was valued at over USD 240 million. The rising number of new online sales platforms offering comprehensive services such as doorstep delivery, availability of an exhaustive range of products, and excellent customer service is driving more people toward the online food segment leading to higher demand in the global nitro-infused beverages market.

Nitro-Infused Beverages Market: Challenges

Complexities related to the production of nitro-infused beverages will challenge the market expansion rate

The global industry is expected to be challenged by the complexities associated with the production of nitro-infused beverages. Unlike traditional counterparts, the nitro infusion process requires the use of modern and specialized equipment. Additionally, the lack of skilled personnel to efficiently handle the production of nitro-infused beverages could further impact the market growth trajectory.

Nitro-Infused Beverages Market: Segmentation

The global nitro-infused beverages market is segmented based on distribution channel, product, and region.

Based on distribution channels, the global market segments are offline and online. In 2023, the highest demand was witnessed in the offline segment. The growth rate was attributed to the growing sale of nitro-infused beverages through supermarkets and hypermarkets. These facilities contributed to over 45.05% of the overall revenue generated through the segment. The growing footfall in large-scale shopping units as well as the several lucrative discounts and offers presented by supermarket companies are driving the segmental demand.

Based on product, the global market divisions are nitro soft drinks, nitro coffee, and others. In 2023, the highest demand was registered in the nitro coffee segment. It led to nearly 55.07% of the total share. The growing number of on-the-go coffee customers, the rising number of local and international brands of coffee houses, and the surging rate of brunch culture are likely to affect the demand for nitro-infused beverages in the coming years. Soft drink manufacturers across the globe are focusing on deploying nitro infusion technology for the expansion of product range and offerings thus helping the segment grow.

Nitro-Infused Beverages Market Report Scope

Nitro-Infused Beverages Market: Regional Analysis

North America will continue to hold its dominant position during the projection period

The global nitro-infused beverages market will be led by North America during the projection period. In 2023, the region dominated nearly 44.05% of the total market share. The essential regional growth propeller is the presence of pioneering companies in introducing nitro infusion technology in the food industry. In addition to this, higher consumer awareness further helps the region flourish. Carbonated drinks are highly popular in North American countries. There is a growing demand for novel beverages with improved texture and overall taste.

In 2018, US-based beverage manufacturer Imbibe announced a partnership with Ball, a metal packaging supplier. This allowed the former company to use the latter’s Widget Inside can technology for the development and packaging of nitro-infused beverages. Europe is anticipated to grow at a significant rate. The reason for the higher growth rate is the large-scale existence of dining-out food habits. The growing popularity of regional cafes on the international platform will be responsible for driving the market demand. Asia-Pacific is projected to become one of the fastest-growing regions. The rising demand in the regional food & beverages industry will fuel the regional market growth trends.

Nitro-Infused Beverages Market: Competitive Analysis

The global nitro-infused beverages market is led by players like:

• Stumptown Coffee Roasters
• Caribou Coffee Company
• Starbucks Corporation
• La Colombe Coffee Roasters
• Dunkin' Brands Group
• Lucky Jack. Peet's Coffee
• Sandows London
• RISE Brewing Co.
• High Brew Coffee
• Bombora Coffee & Water Co.
• Califia Farms
• Cuvee Coffee
• RISE Brewing Co.

The global nitro-infused beverages market is segmented as follows:

By Distribution Channel

• Offline
• Online

By Product

• Nitro Soft Drinks
• Nitro Coffee

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa