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Mezcal Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

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  • 170 Pages
  • August 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4622781
UP TO OFF until Mar 31st 2024
The Mezcal Market size is expected to grow from 10.56 million liters in 2023 to 18.10 million Liters by 2028, at a CAGR of 11.38% during the forecast period (2023-2028).

Key Highlights

  • The demand for mezcal, a tropical agave plant-based liquor, increased significantly over the past few years and is expected to increase further over the forecast period. The increased demand for alcoholic beverages, especially among millennials, as well as the rising global consumer desire for premium/super-premium goods, are the main drivers of the mezcal market.
  • Similarly, its popularity has risen astronomically, partly due to its increased incorporation into cocktails, which is often how American imbibers first encounter the spirit; it's used frequently as a substitute for other spirits in drinks like a smoky margarita or a mezcal mule.
  • Moreover, consumers worldwide prefer mezcal over other tequila products due to the availability of various flavors. Mezcal is made from 50 different varieties of agave, but only one type of agave plant (blue agave) makes tequila. Mezcal's signature smoky flavor comes from cooking the agave in pits in the ground, bringing a depth and smokiness not found in tequila. These features of mezcal are attracting more alcohol consumers who have sophisticated tastes and the desire to try out innovative flavors.
  • Moreover, owing to the premiumization trend, consumers have been inclined toward quality over quantity in recent years. As consumers shift toward sophistication, it triggers the demand for premium beverages like mezcal. This has led manufacturers to launch more mezcal products to address the rising demand and thus gain a larger market share.
  • For instance, in November 2021, the United Kingdom's drinks brand Dangerous Don launched its mezcal range, Dangerous Don Espadà­n, in 50 M&S stores nationwide. Furthermore, the increase in the working younger population that consumes a variety of flavors has been a major supporting factor behind the growth of the mezcal market.

Mezcal Market Trends

Increasing Demand for Premium Distilled Agave-Based Beverages

  • As lifestyle is changing, consumers are more focused on premium and organic products because of health consciousness. Therefore, many alcohol users prefer mezcal drinks as a substitute for other alcoholic products. The mezcal drink is made up of succulent agave plants. As agave has a lower glycemic index (GI) of 10%-15% depending upon the product, many consumers prefer agave-based mezcal due to its less sugary effects, which have raised the demand for agave-based products over the years.
  • Additionally, the taste and availability of various flavors in mezcal are attracting more new consumers, which is driving its sales. The taste of mezcal differs from the tequila as pinas (agave heart) are smoked for 3-4 days in large pits for manufacturing mezcal which eventually provides premium quality and a different taste to consumers, thereby providing a premium quality with better taste from the organic product.
  • Moreover, owing to the higher incomes, the popularity of high-end drinks among the millennial population is growing, and the growing popularity of the cocktail culture in developing nations, such as China and India, is expected to promote the off-trade sales of premium spirits like mezcal. With this surge in demand for mezcal in different nations, manufacturers focus on expanding their businesses, productions, and product portfolios to gain major market shares.
  • Furthermore, there is a rising trend amongst wealthier consumers, especially those in developed economies such as the United States and Canada, to seek out interesting and novel premium products and trade up to drinks of a niche variety with high production value. As a result, the demand for and volume of premium spirits has increased greatly over the past few years, especially compared to standard spirits. According to Mezcal Regulatory Council, in 2020, exports of mezcal from Mexico increased to 4.8 million liters from 3.42 million liters in 2018.

North America is the Largest Market

  • Mexico is the origin of mezcal, making the North American region the largest producer in the mezcal market. This is due to the presence of the countries such as Mexico and the United States, as they play a significant role in the production of mezcal. Similarly, owing to the consumer's interest in different agave-based drinks like mezcal and their inclination towards traditional and luxury drinks, the consumption of mezcal has been accounting for a significant share in the premium alcohol market of the region.
  • For instance, according to Distilled Spirits Council of the United States (DISCUS), in 2022, tequila/mezcal accounted for the 4th largest consumption share among distilled spirits in the United States, with almost 9.79%.
  • Moreover, the rise of the cocktail culture in the region, majorly in the United States, coupled with the measures taken by manufacturers to modernize the marketplace by providing spirits to consumers with greater access and more choices, is expected to support and drive the market’s growth in the region. Furthermore, due to the emerging demands, the key players in the segment are accounting for significant increases in their revenues by offering various innovative flavors to consumers to meet their changing preferences.
  • For instance, Pernod Ricard’s Del Maguey, one of the top players in the region that offers various mezcal products and the largest selling brand’s net sales in 2021 saw a growth of 4.45% in sales to EUR 8.8 billion (USD 10.492 billion). Similarly, its sales grew substantially in 2022 to EUR 10.7 billion (USD 12.733 billion). With this growth, manufacturers are expected to expand their businesses and mezcal product offerings, thus boosting the market’s growth in the region and throughout the globe during the forecast period.

Mezcal Industry Overview

The global mezcal market is highly competitive, with the presence of various international and domestic players. Some of the key players in the market are Pernod Ricard, Ilegal Mezcal, Diageo PLC, Rey Campero, and El Silencio Holdings INC.

Key players have been investing in acquiring small players in the mezcal market, especially to leverage the luxury spirits segment and to develop the product portfolio. They are focusing on product development and innovation to meet the consumer's needs by offering a variety in taste and product quality to maintain premiumization. Also, some major players use mergers and acquisitions as their key strategy. The leading manufacturers in the mezcal market have also been focused on leveraging opportunities posed by emerging markets in regions such as Asia-Pacific to expand their business operations.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.1.1 Increasing Trend of Consuming Cocktails
4.1.2 Rising Demand for Premium Spirits
4.2 Market Restraints
4.2.1 Affordability of the Product is Restraining the Market’s Growth
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Product Type
5.1.1 Mezcal Joven
5.1.2 Mezcal Reposado
5.1.3 Mezcal Anejo
5.1.4 Other Product Types
5.2 Distribution Channel
5.2.1 Offline Retail stores
5.2.2 Online Retail stores
5.3 Geography
5.3.1 North America United States Canada Mexico Rest of North America
5.3.2 Europe United Kingdom Germany Spain France Italy Rest of Europe
5.3.3 Rest of the World
6.1 Strategies Adopted by Leading Players
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Pernod Ricard SA
6.3.2 Ilegal Mezcal SA
6.3.3 William Grant & Sons Ltd.
6.3.4 Rey Campero
6.3.5 Diageo PLC
6.3.6 El Silencio Holdings INC
6.3.7 Mezcal Vago
6.3.8 Lagrimas de Dolores
6.3.9 Fidencio Mezcal
6.3.10 IZO Spirits
6.3.11 Compañia Tequilera de Arandas S.A. de C.V. (Lobos)

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Pernod Ricard SA
  • Ilegal Mezcal SA
  • William Grant & Sons Ltd.
  • Rey Campero
  • Diageo PLC
  • El Silencio Holdings INC
  • Mezcal Vago
  • Lagrimas de Dolores
  • Fidencio Mezcal
  • IZO Spirits
  • Compañia Tequilera de Arandas S.A. de C.V. (Lobos)