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As per this latest study by Fact.MR, a provider of market research and competitive intelligence, the global nitro cocktails market is expected to garner USD 102.7 million by 2033, expanding at a high-value CAGR of 16.7 % from 2023 to 2033.

Nitrogen gas is added to beverages to give them a distinctive texture and flavour. Under high pressure, nitrogen gas is added to a beverage during this procedure, resulting in small bubbles that give the beverage a silky and creamy texture.

Market expansion is being driven by the fast-rising demand for beverages that are ready to drink. In addition, the demand for healthy and low-sugar beverages is growing as a result of consumers’ growing health awareness. Additionally, adoption of convenience-oriented lifestyles has been encouraged by rapid urbanisation, rising middle-class population, and growing number of youths in developing economies, which has increased the demand for ready-to-drink beverages with nitro infusions.

As the demand for unique and visually appealing cocktails continues to grow, the market for nitro cocktails is expected to continue expanding rapidly. However, it is worth noting that the use of nitrogen gas can be potentially dangerous if not handled properly; so it is important for bartenders and establishments to take proper safety precautions when preparing and serving nitro cocktails.

Key takeaways from market study:

  • The global nitro cocktails market is valued at USD 21.9 million in 2023.
  • Worldwide demand for nitro cocktails is projected to increase at a CAGR of 16.7 % from 2023 to 2033.
  • The global market is estimated to touch USD 102.7 million by the end of 2033.
  • The market in China is projected to surge ahead at a CAGR of 21.6 % during the forecasted time frame (2023 to 2033).
  • The market in the United Kingdom is forecasted to expand at 14.9 % CAGR through 2033.

“Consumer demand for new products is rising, along with continuously changing drinking habits and consumer behaviour, which is fueling the consumption of nitro cocktails,” says a Fact.MR analyst.

Market competition

The market for nitro cocktails is still relatively small but is growing rapidly. More and more bars and restaurants across the world are adding nitro cocktails to their menus, and some companies are even producing pre-made nitro cocktails that can be purchased in stores. In addition, there are now specialised nitro cocktail machines that bars and restaurants can use to create their own unique nitro cocktail creations.

  • Cruise Beverages announced the debut of a new range of Nitro-infused CBD Craft drinks in February 2021. These really useful drinks provide a substitute for alcoholic beverages. They are designed to improve focus and aid individuals in managing stress and anxiety without causing a spike in sugar levels or hangover-like symptoms.

As the conversion wave from synthetic to natural colors continues to rise in the US market, Chr. Hansen gears up for the future

Global bioscience company Chr. Hansen has purchased the Banker Wire manufacturing facility in Mukwonago, Wisconsin, adding significantly to its presence in North America, in convenient proximity to its Milwaukee-base. Taking this step is in response to an ever growing interest from US consumers in products made from natural, recognizable and safe ingredients, putting pressure on food and beverage producers to convert to natural colors.

The acquired facility will be renovated to become the new North American headquarters for the company’s Natural Colors Division, housing everything from production, to research and development, application and quality assurance labs, a pilot plant, a dedicated warehouse, as well as sales and marketing and other business support functions.
“This is the largest single investment for Natural Colors in recent years and demonstrates our commitment to the important North American market,” says Jacob Vishof Paulsen, acting Executive Vice President of Natural Colors Division. “Having the whole chain gathered in one place will allow for a fast and agile response to customer needs, supporting Chr. Hansen’s current and future business demands for the next decade – with room to grow.”

High quality products, faster

The expansion will strengthen Chr. Hansen’s position as an industry leader with full supply chain capabilities to deliver natural color solutions to current and future customers. The new state-of-the-art site will create better speed to market, based on more flexibility in production and supply chain and resulting in high quality products, faster.
Chr. Hansen, who has been present on the North American market since 1878, will take over the building next year and initially employ 70-80 people. Meanwhile we will continue to serve our many customers from our base in Milwaukee, Wisconsin.