Tequila Market: Global Industry Analysis and Forecast (2024-2030)

  • The Tequila Market size was valued at USD 14.31 Bn. in 2023 and the total Global Tequila revenue is expected to grow at a CAGR of 6.15 % from 2024 to 2030, reaching nearly USD 22.05 Bn. by 2030.

  • Format : PDF | Report ID : SMR_2010

Tequila Market Overview

Tequila is a distilled alcoholic beverage made primarily from the fermented sap of the blue agave plant. Tequila is a drink originating from Mexico. Jalisco is known as the birthplace of tequila. The Tequila Market has experienced significant growth because of various factors, including the increasing demand for premium and handcrafted spirits, the popularity of Mexican cuisine and cocktails, and the increasing disposable income of consumers in key markets like North America and Europe. The global popularity of tequila has been greatly influenced by the rich cultural traditions of Mexico.

 

This report offers a detailed overview of the global Tequila Market, covering essential industry trends, market dynamics, and competitive analysis. It contains historical data, current market trends, product consumption, environmental factors, technological innovation forecasts, upcoming technologies, and technical progress in the related industry. It categorizes the global data by manufacturer and region. Additionally, the report analyzes market status, market share, growth rate, future trends, drivers, opportunities, challenges, risks, entry barriers, sales channels, and distributors.

 

The report delves into the potential of the Tequila market, offering a comprehensive blend of quantitative and qualitative analysis. It offers a thorough understanding of the Tequila market, encompassing key aspects from an overarching view to detailed segment analysis based on type, grade, distribution channel, and region. It utilizes tools like Porter's Five Forces, Industry Value Chain, and PESTEL Analysis. Key sections such as Patent Analysis, Regulatory Framework, Price Trends, and Investment Analysis provide insights into market evolution and future directions.

 

  • The majority of the world's tequila exports from France, the United Kingdom, and Mexico.
  • The top 3 importers of the Tequila market are India with 51 shipments followed by the United States with 7 and Mexico at the 3rd spot with 2 shipments.

 

Tequila Market

 

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Tequila Market Dynamics

Increasing Consumer Demand for Premium Spirits to Boost Market Growth.

Premiumization has become a trend in recent years as consumers are inclining toward quality over quantity. As consumers turn towards sophistication and premium quality beverages, it triggers the demand for such products. There is a growing demand for premium and super-premium tequila brands as consumers are willing to pay more for higher-quality, 100% agave tequilas. This has been a major driver of revenue growth for the industry. Tequila brands have been actively expanding into new international markets, particularly in Europe and Asia, driving global demand. Leading companies, such as Diageo Plc and Pernod Ricard, focus on capturing evolving consumer trends to develop novel products and seize new market opportunities. These players also focus on merger and acquisition activities to strengthen their presence in the growing agave category. Some celebrities have launched or endorsed their tequila brands, raising the profile and desirability of the spirit.

 

For instance, In October 2022, Pernod Ricard, a global liqueur company, acquired the majority share in Código 1530 Tequila, a premium and ultra-premium tequila-producing company. According to International Wine and Spirit Research (IWSR), In 2022, premium-and-above spirits are expected to grow exponentially worldwide, with a volume market share of 13% by 2024, owing to the consumer's demand for high-end sipping spirits and cocktails.

 

The premiumization trend is widely growing popular in European countries owing to the consumers shifting focus towards craft distilleries and locally produced drinks. These small craft distilleries offer new propositions and flavors to the spirits, such as tequila driving the craft spirits market in Europe. Increasing urbanization and the disposable income of middle-class consumers have influenced their changing preferences. Thus, the new consumption habits continue to drive the premium spirits category and boost market growth.

Tequila Market1

Limited Supply, Regulatory Hurdles, and Shifting Consumer Preferences hamper tequila market growth

The tequila market faces several restraints and challenges that hamper its growth and development. The limited supply of blue agave, the primary ingredient in tequila production. The agave cultivation takes several years, and environmental factors such as droughts and pests can significantly impact the yield, leading to supply shortages and price fluctuations. The tequila industry is subject to strict regulations regarding production, labelling, and geographical indications. Navigating these regulations can be challenging for businesses. The strict regulations and quality standards imposed by the Tequila Regulatory Council (Consejo Regulador del Tequila) in Mexico create barriers for new entrants and limit innovation in the market.

 

The market is also heavily dependent on the economic conditions and consumer spending patterns in key importing countries, such as the United States and Canada, where economic downturns or shifts in consumer preferences significantly impact demand. So, the tequila market faces intense competition from other spirits, such as whiskey, vodka, and gin, as well as the growing popularity of craft cocktails and alternative alcoholic beverages, which can potentially divert consumer attention and spending. Changing Consumer Preferences, and trends in the tequila market can change rapidly, making it challenging for businesses to keep up with shifting demands, which hamper the Tequila market.         

 

Tequila Market Segment Analysis

Based on type, the Tequila segment held the largest market share in the Tequila Market in 2023. According to the SMR analysis, the segment is expected to grow during the forecast period and maintain its dominance till 2030. The global Tequila market segmentation, based on type, includes Blanco, reposado, anejo, and others. The Blanco segment dominated the market with its semi-sweet, distinctive agave flavor. Blanco has a smoother taste and vast availability resulting in its wide consumption. Blanco tequilas have become increasingly popular for use in cocktails like margaritas, palomas, and tequila sodas. Their unaged flavor profile allows the agave taste to shine through in mixed drinks. The huge utilization of blanco variants in various cocktails such as margarita and Paloma contributes to holding the market’s largest share. Blanco tequilas are often seen as more approachable for new tequila drinkers than aged expressions like reposados and añejos, helping attract new consumers.

 

  • The top 3 importers of Blanco tequila are the United States with 27,018 shipments followed by India with 8,071 and Mexico at the 3rd spot with 933 shipments.

Tequila Market2

Tequila Market Regional Analysis

North America dominated the Tequila Market, with a leading market share of 57.88% in 2023. The region is expected to continue growing and maintain its dominance by 2030. North America region is dominating because of high disposable income levels and the purchasing power of consumers in the United States and Canada has made the North American market an attractive destination for premium tequila brands, contributing to the region's dominance in the tequila market. The transformation of tequila from a party drink to a refined spirit has been a major factor in this growth.

 

High-priced tequilas have successfully rebranded themselves as sipping liquors, appealing to a discerning clientele who seek quality and complexity in their spirits. This trend has driven an explosion of product introductions and innovations in the tequila industry. The North American market has been the focus of significant marketing and branding efforts by major tequila brands. These strategic investments have successfully increased consumer awareness, fostered brand loyalty, and positioned tequila as a sought-after and high-quality spirit among consumers.

 

  • In 2021 Tequila outsold whiskey in retail sales, securing its place as the second best-selling spirit after vodka. This trend continued into 2022, indicating that tequila's popularity is permanent.

Tequila Market3

Europe represents a mature market for the Cassava Bags industry, holding a market share of XX% and experiencing significant growth during its forecast period. The European Tequila market has significant growth due to artisanal spirits' increasing popularity in Germany, Spain, and the U.K. Tequila, with its exceptional craftsmanship, rich heritage, and esteemed protected status, is poised to capitalize on the growing trend of craft spirits in the area. As more discerning consumers seek to elevate their drinking experience, they are increasingly gravitating towards premium brands, making tequila an ideal choice.

 

  • In March 2019, the spirit obtained its geographical indication (GI), recognizing it as an EU spirit and enhancing its market value as a protected EU product. This is anticipated to enhance its performance in the region. Moreover, the rise of cocktail culture and the introduction of tequila by renowned celebrities are driving interest and demand for tequila in the U.K. market.

 

In the Asia Pacific, the spirit has gained recognition among consumers, especially the millennials in countries like China and Australia. The increasing imports and consumers seeking quality over quantity and preferring spirits made in small batches have supported the market growth.

 

Tequila Market Competitive Landscape

The Tequila Market report provides an overview of industry players based on market share, concentration ratio, and other factors. It offers detailed information on the top companies, allowing readers to gain insights into their competitors and a comprehensive understanding of the competitive landscape. The report covers mergers & acquisitions, emerging market trends, and regional conflicts.

 

In the Tequila Market, the Report delivers an in-depth analysis of leading and emerging players in the market. Tequila manufacturers are increasing their product lines by producing value with new offerings such as Fiesta Reserve, Azul Horizon, Agave Essence, and Blanco Brilliance. These creative offers address changing customer needs for convenience, diversity, and capabilities.

 

  1. In February 2022, Avión, the brand owned by Pernod Ricard introduced avian Reserva Cristalino Tequila under its reserve line-up. Newly launched tequila is the blend of 12-month-old Añejo with a touch of three-year-old Extra Añejo Reserva.
  2. In February 2022, Suntory Holdings Limited's brand Tres Generaciones tequila introduced aejo Cristalino, its new ultra-premium offering. The crystal-clear liquid was created by Tres Generaciones master distiller distillers at La Preserancia distillery in Jalisco.
  3. In April 2021, Bacardi introduced a premix RTD to the portfolio of its tequila brand Cazadores in the United States. The RTD which has an abv of 5.9%, is made with 100% blue gave and comes in a spicy margarita, and Paloma flavors.

 

Tequila Market Scope

Tequila Market

Market Size in 2023

USD 14.31 Bn.

Market Size in 2030

USD 22.05   Bn.

CAGR (2024-2030)

6.15 %

Historic Data

2018-2022

Base Year

2023

Forecast Period

2024-2030

Segments

By Type

Blanco

Reposado

Anejo

Others

By Grade

Value

Premium

High-end Premium

Super Premium

By Distribution Channel

Off-trade

On-trade

Regional Scope

North America(United States), Canada, and Mexico

Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe

Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC

Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa

South America – Brazil, Argentina, Rest of South America

 

Key Player in the Tequila Market

  1. Bacardi Limited (Bermuda)
  2. Jose Cuervo Tequila (New Jersey)
  3. Sauza Tequila (Mexico)
  4. Pernod Ricard S.A. (France)
  5. Diageo Plc (London)
  6. Suntory Holdings Limited (Japan)
  7. Heaven Hill Distilleries, Inc. (U.S.)
  8. Campari Group (Italy)
  9. Sazerac Company Inc. (U.S.)
  10. Brown-Forman Corporation (U.S.)
  11. Casa Aceves (Mexico)
  12. Constellation Brands, Inc. (U.S.)
  13. Sazerac Company Inc..
  14. Brown-Forman Corporation
  15. 1800 Tequila (Jalisco)
  16. Dano's Tequila (U.S.)
  17. Milagro (Mexico)
  18. Tequila Ocho (Mexico)
  19. Clase Azul (Jalisco, Mexico)
  20. Gruppo Company (Rimini, Italy)
  21. Suntory global spirit (Newyork)
  22. Corralejo (Guanajuato)
  23. Maestro Dobel (Mexico)
  24. Gran Centenario (Jalisco)
  25. TAS Agave LLC (Mexico)
  26. XX.Inc.


Frequently Asked Questions

The Tequila Market is expected to grow at a CAGR of 6.15 % during the forecast period of 2023 to 2030.

1.    Tequila Market: Research Methodology 
2.    Tequila Market: Executive Summary
3.    Tequila Market: Competitive Landscape
4.    Potential Areas for Investment

4.1. Stellar Competition Matrix
4.2. Competitive Landscape
4.3. Key Players Benchmarking
4.4. Market Structure
4.4.1.    Market Leaders 
4.4.2.    Market Followers
4.4.3.    Emerging Players

4.5. Consolidation of the Market
4.6. Global Import-Export Analysis
5.    Tequila Market: Dynamics
5.1. Market Driver 
5.1.1.    Increased Focus on Sterility 
5.1.2.    Technological Advancements in single-use filters
5.1.3.    Regulatory Requirements on Product Quality & Safety

5.2. Market Trends by Region
5.2.1.    North America
5.2.2.    Europe
5.2.3.    Asia Pacific
5.2.4.    Middle East and Africa
5.2.5.    South America

5.3. Market Drivers 
5.4. Market Restraints
5.5. Market Opportunities
5.6. Market Challenges
5.7. PORTER’s Five Forces Analysis
5.8. PESTLE Analysis
5.9. Strategies for New Entrants to Penetrate the Market
5.10. Regulatory Landscape by Region
5.10.1.    North America
5.10.2.    Europe
5.10.3.    Asia Pacific
5.10.4.    Middle East and Africa
5.10.5.    South America

6.    Tequila Market Size and Forecast by Segments (by Value in USD Billion)
6.1. Tequila Market Size and Forecast, by Type  (2023-2030)
6.1.1.    Blanco
6.1.2.    Reposado
6.1.3.    Anejo
6.1.4.    Others
 
6.2. Tequila Market Size and Forecast, by Grade (2023-2030)
6.2.1.    Value
6.2.2.    Premium
6.2.3.    High-end Premium
6.2.4.    Super Premium

6.3. Tequila Market Size and Forecast, by Distribution Channel (2023-2030)
6.3.1.    Off-trade
6.3.2.    On-trade 

6.4. Tequila Market Size and Forecast, by Region (2023-2030)
6.4.1.    North America
6.4.2.    Europe
6.4.3.    Asia Pacific
6.4.4.    Middle East and Africa
6.4.5.    South America

7.    North America Tequila Market Size and Forecast (by Value in USD Billion)
7.1. North America Tequila Market Size and Forecast, by Type  (2023-2030)
7.1.1.    Blanco
7.1.2.    Reposado
7.1.3.    Anejo
7.1.4.    Others 

7.2. North America Tequila Market Size and Forecast, by Grade (2023-2030)
7.2.1.    Value
7.2.2.    Premium
7.2.3.    High-end Premium
7.2.4.    Super Premium 

7.3. Tequila Market Size and Forecast, by Distribution channel (2023-2030)
7.3.1.    Off-trade
7.3.2.    On-trade 

7.4. North America Tequila Market Size and Forecast, by Country (2023-2030)
7.4.1.    United States
7.4.2.    Canada
7.4.3.    Mexico

8.    Europe Tequila Market Size and Forecast (by Value in USD Billion)
8.1. Europe Tequila Market Size and Forecast, by Type  (2023-2030)
8.1.1.    Blanco
8.1.2.    Reposado
8.1.3.    Anejo
8.1.4.    Others 

8.2. Europe Tequila Market Size and Forecast, by Grade (2023-2030)
8.2.1.    Value
8.2.2.    Premium
8.2.3.    High-end Premium
8.2.4.    Super Premium 

8.3. Tequila Market Size and Forecast, by Distribution Channel (2023-2030)
8.3.1.    Off-trade
8.3.2.    On-trade 

8.4. Europe Tequila Market Size and Forecast, by Country (2023-2030)
8.4.1.    UK
8.4.2.    France
8.4.3.    Germany
8.4.4.    Italy
8.4.5.    Spain
8.4.6.    Sweden
8.4.7.    Austria
8.4.8.    Rest of Europe

9.    Asia Pacific Tequila Market Size and Forecast (by Value in USD Billion)
9.1. Asia Pacific Tequila Market Size and Forecast, by Type  (2023-2030)
9.1.1.    Blanco
9.1.2.    Reposado
9.1.3.    Anejo
9.1.4.    Others 

9.2. Asia Pacific Tequila Market Size and Forecast, by Grade (2023-2030)
9.2.1.    Value
9.2.2.    Premium
9.2.3.    High-end Premium
9.2.4.    Super Premium 

9.3. Tequila Market Size and Forecast, by Distribution Channel (2023-2030)
9.3.1.    Off-trade
9.3.2.    On-trade 

9.4. Asia Pacific Tequila Market Size and Forecast, by Country (2023-2030)
9.4.1.    China
9.4.2.    S Korea
9.4.3.    Japan
9.4.4.    India
9.4.5.    Australia
9.4.6.    Indonesia 
9.4.7.    Malaysia
9.4.8.    Vietnam
9.4.9.    Taiwan
9.4.10.    Bangladesh 
9.4.11.    Pakistan
9.4.12.    Rest of Asia Pacific

10.    Middle East and Africa Tequila Market Size and Forecast (by Value in USD Billion)
10.1. Middle East and Africa Tequila Market Size and Forecast, by Type  (2023-2030)
10.1.1.    Blanco
10.1.2.    Reposado
10.1.3.    Anejo
10.1.4.    Others 

10.2. Middle East and Africa Tequila Market Size and Forecast, by Grade (2023-2030)
10.2.1.    Value
10.2.2.    Premium
10.2.3.    High-end Premium
10.2.4.    Super Premium 

10.3. Tequila Market Size and Forecast, by Distribution Channel (2023-2030)
10.3.1.    Off-trade
10.3.2.    On-trade 

10.4. Middle East and Africa Tequila Market Size and Forecast, by Country (2023-2030)
10.4.1.    South Africa
10.4.2.    GCC
10.4.3.    Egypt
10.4.4.    Nigeria
10.4.5.    Rest of ME&A

11.    South America Tequila Market Size and Forecast (by Value in USD Billion)
11.1. South America Tequila Market Size and Forecast, by Type  (2023-2030)
11.1.1.    Blanco
11.1.2.    Reposado
11.1.3.    Anejo
11.1.4.    Others 

11.2. South America Tequila Market Size and Forecast, by Grade (2023-2030)
11.2.1.    Value
11.2.2.    Premium
11.2.3.    High-end Premium
11.2.4.    Super Premium 

11.3. Tequila Market Size and Forecast, by Distribution Channel (2023-2030)
11.3.1.    Off-trade
11.3.2.    On-trade 

11.4. South America Tequila Market Size and Forecast, by Country (2023-2030)
11.4.1.    Brazil
11.4.2.    Argentina
11.4.3.    Rest of South America

12.    Company Profile: Key players
12.1. Delta Bacardi Limited (Bermuda)
12.1.1.    Company Overview
12.1.2.    Financial Overview
12.1.3.    Business Portfolio
12.1.4.    SWOT Analysis
12.1.5.    Business Strategy 
12.1.6.    Recent Developments

12.2. Jose Cuervo Tequila (New Jersey)
12.3. Sauza Tequila (Mexico)
12.4. Pernod Ricard S.A. (France)
12.5. Diageo Plc (London)
12.6. Suntory Holdings Limited (Japan)
12.7. Heaven Hill Distilleries, Inc. (U.S.)
12.8. Campari Group (Italy)
12.9. Sazerac Company Inc. (U.S.)
12.10. Brown-Forman Corporation (U.S.)
12.11. Casa Aceves (Mexico)
12.12. Constellation Brands, Inc. (U.S.)
12.13. Sazerac Company Inc.
12.14. Brown-Forman Corporation
12.15. 1800 Tequila (Jalisco)
12.16. Dano's Tequila (U.S.)
12.17. Milagro (Mexico)
12.18. Tequila Ocho (Mexico)
12.19. Clase Azul (Jalisco, Mexico)
12.20. Gruppo Company (Rimini, Italy)
12.21. Suntory global spirit (Newyork)
12.22. Corralejo (Guanajuato)
12.23. Maestro Dobel (Mexico)
12.24. Gran Centenario (Jalisco)
12.25. TAS Agave LLC (Mexico)
12.26. XX.Inc.
13.    Key Findings
14.    Industry Recommendations 

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