Tequila Global Market Report 2024

The tequila market size has grown rapidly in recent years. It will grow from $12.73 billion in 2023 to $14.32 billion in 2024 at a compound annual growth rate (CAGR) of 12.4%. The growth in the historic period of the tequila market can be attributed to several factors. Cultural and lifestyle trends played a significant role as consumer preferences and behaviors evolved over time. Additionally, the rising popularity of cocktails contributed to increased demand for tequila, as it is a key ingredient in various mixed drinks. The market also experienced growth due to premiumization and craft trends, with consumers showing an increasing interest in high-quality and artisanal tequila products. The globalization of tequila consumption expanded its reach to international markets, further fueling market growth. Marketing and branding strategies employed by tequila producers played a crucial role in creating awareness and driving consumer interest in the product.

The tequila market size is expected to see rapid growth in the next few years. It will grow to $21.79 billion in 2028 at a compound annual growth rate (CAGR) of 11.1%. The anticipated growth in the forecast period for the spirits industry can be attributed to several key factors. The rising influence of millennial and Gen Z consumers, an expanding cocktail culture, premiumization, and brand diversification are expected to contribute significantly to the industry's development. Additionally, the increasing global affinity for Mexican spirits, known for their unique and high-quality offerings, is poised to drive growth. Moreover, the adoption of sustainable and ethical practices within the industry is becoming increasingly important, aligning with the values of modern consumers.

The tequila market is expected to experience growth due to the growing consumer inclination towards agave-based spirits. Agave alcohol, brewed from the fermented maguey (agave) plant's sap, has been a traditional drink in central Mexico for centuries. The popularity of agave spirits is on the rise in the United States, with increasing imports from Mexico. Retailers are also making adjustments to accommodate the growing sales of tequila, with a reported increase of 30.1% year on year to USD 5.2 billion in agave-based spirits sales in February 2022, according to CNBC. This trend indicates a significant consumer preference for agave-based spirits, contributing to the growth of the tequila market.

The increasing focus on health consciousness is expected to drive the growth of the tequila market. Health-conscious consumers are mindful of their well-being, and tequila, known for containing compounds such as agavins, is perceived to have potential cardiovascular benefits, promote digestive health, positively impact blood sugar levels and weight management, provide antioxidants for neutralizing free radicals, enhance bone health, and cater to individuals with gluten sensitivities. The increasing adoption of healthier lifestyles is evident in survey results from the UK, where 80% of participants above the age of 18 expressed a commitment to lifestyle changes in 2021, according to gov.UK. This health-conscious mindset is contributing to the growth of the tequila market.

Product innovation is a prominent trend gaining traction in the tequila market, with major companies strategically focusing on developing new and innovative products to enhance their market positions. For instance, in April 2022, Diageo, a UK-based multinational alcoholic beverage company, introduced Astral Tequila in the US, a premium tequila crafted from 100% blue Weber agave. Diageo has not only re-introduced the product but also revamped its packaging, refined the recipe with a new distillery, resulting in a fresh liquid, and initiated new marketing efforts.

Collaborations and partnerships are also prevalent among major companies in the tequila market, aiming to foster innovation, leverage complementary expertise, and expedite the development and commercialization of advanced products. An example of this is the partnership between Identiv Inc., a US-based provider of physical security and secure identification solutions, and OTACA Tequila, a US-based ultra-premium agave spirits brand. This collaboration, established in October 2021, focuses on enhancing smart packaging innovations with near field communication (NFC)-enabled authentication, product provenance, transparency, customer loyalty, and brand recognition. The integration of Identiv's tap-and-go NFC technology, powered by effective NTAG 210u NFC tags, digitized over 5,000 OTACA Tequila bottles, providing consumers with enhanced brand exposure, loyalty programs, transparency, and authentication.

In October 2022, Pernod Ricard, a French company renowned for its anise-flavored pastis aperitifs, announced its acquisition of a majority stake in Código 1530 Tequila. This strategic move expands Pernod's agave portfolio, following its recent investment in the sotol market and aligns with the company's efforts to strengthen its presence in the US and Mexico. Código 1530 Tequila is a US-based beverage company that has become part of Pernod Ricard's diversified portfolio in the alcoholic beverage sector.

Major companies operating in the tequila market report are Pernod Ricard SA, Christian Dior SE, Suntory Holdings Limited, Asahi Group Holdings Ltd., Diageo PLC, Kirin Holdings Co. Ltd., El Grado Tequila LLC, Jose Cuervo S.A. de C.V., Dos Lunas Spirits LLC, The Molson Coors Brewing Company, Constellation Brands Inc., Thai Beverage Public Company Limited, Casamigos Spirits Co., Bacardi Limited, Brown-Forman Corporation, Clase Azul Tequila S.A. de C.V., Ambhar Global spirits LLC, Patron Spirits International LLC, Proximo Spirits LLC, Milagro Tequila LLC, Tres Agaves Productos LLC, Tequila Don Julio S.A. de C.V., Tequila Avion LLC, Sauza Tequila S.A. de C.V., Tequila Fortaleza S.A. de C.V., Cazadores Tequila S.A. de C.V., Grupo Industrial Herradura S.A. de C.V., Familia Camarena Tequila S.A. de C.V., Espolon Tequila S.A. de C.V.

North America was the dominated region in the tequila market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global tequila market during the forecast period. The regions covered in the tequila market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tequila market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

In the tequila market, the primary types of tequila are Blanco, Reposado, Anejo, and others. Blanco, also known as silver tequila, is the purest form and is occasionally aged for a short period. Tequila is categorized based on purities such as premium, value, super-premium, and ultra-premium tequila. It is distributed through on-trade and off-trade channels.

The tequila market research report is one of a series of new reports that provides tequila market statistics, including tequila industry global market size, regional shares, competitors with a tequila market share, detailed tequila market segments, market trends, and opportunities, and any further data you may need to thrive in the tequila industry. This tequila market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The tequila market consists of sales whiskey, vodka and rum and other spirits. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.