Tequila Global Market Report 2024

Tequila is a distilled alcoholic beverage crafted from the Agave Tequilana plant. During its production, the plant is fermented along with other sugars such as fructose and glucose, along with synthetic flavorings. Tequila serves as a popular base ingredient in various cocktails and enjoys widespread popularity, particularly among younger individuals globally.

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 from The Business Research Company 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 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 Codigo 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. Codigo 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.

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.

Tequila Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on tequila market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for tequila ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The tequila market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Blanco; Reposado; Anejo; Other Types
• 2) By Purity: Premium Tequila; Value Tequila; Premium and Super-Premium Tequila; Ultra-Premium Tequila
• 3) By Distribution Channel: On-Trade; Off-Trade
• Companies Mentioned: Pernod Ricard SA; Christian Dior SE; Suntory Holdings Limited; Asahi Group Holdings Ltd.; Diageo plc
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.