The APAC tequila and single malt market is predicted to grow at a CAGR of 4.71% during the forecast period. (2025-2030)
The APAC alcoholic spirits market is growing rapidly, driving the premium tequila and single malt market as well, particularly by younger consumers, urban professionals, and the affluent middle class. The rising disposable income and growing urbanization in the APAC regions, along with the demand for premium categories of spirits, are the driving forces behind the market. The APAC region is witnessing a significant cultural shift toward premium and international alcoholic beverages, which is also due to the growing influence of Western lifestyles. There is high growth in tequila as well as single malt categories in countries like China, India, and Australia, driven by new product innovation, market expansion into this region for its lucrativeness, and the entry of new niche startups. In the upcoming years, the market will maintain a strong growth trajectory, supported by increasing consumer awareness, rising social acceptance of spirits, growing nightlife culture, and expanding e-commerce alcohol sales.
Tequila is a distilled beverage made from the blue agave plant, primarily grown in the area surrounding the city of Tequila, northwest of Guadalajara, and in the Jaliscan Highlands of the central western Mexican state of Jalisco. It generally contains 45% to 50% of alcohol. As tequila has a protected designation of origin, by Mexican law, only spirits made in specific regions of Mexico from blue agave can legally be called "tequila". Thus, in the APAC region, there is no official production of tequila due to geographical origin rules, making the Tequila import-driven in APAC.
Single malt production in the Asia-Pacific region is experiencing significant growth, driven by rising disposable income and expanding middle and upper classes in countries like China, India, Japan, and South Korea, which are shifting consumption toward premium spirits such as single malt whisky.
Major countries in the Asia-Pacific region are increasingly investing in the growth of premium whisky brands to capture the rapidly expanding market demand. With rising consumer interest in single malt whiskies and premium spirits, markets such as China, Japan, South Korea, India, and Singapore are driving significant investment in marketing, distribution, and localized campaigns to strengthen their position in this high-potential segment. For instance, India is growing rapidly in single malt production. It includes key players such as John Distillery, Amrut Distilleries, Radico Khaitan, and Piccadily Agro. With an annual production capacity of over 15 million litres, supported by 4+ distilleries and more than 200,000 barrels in maturation, India is exporting our single malt to over 50 countries worldwide.
The tequila and single malt markets in APAC are witnessing a surge in product launches, new startups, and strategic market expansions by global leaders aiming to capitalize on the region's high growth potential. Some of the key players include Diageo plc, Pernod Ricard SA, Bacardi Limited, Jose Cuervo (Becle, S.A.B. de C.V.), Suntory Holdings Limited, Amrut Distilleries Pvt. Ltd., William Grant & Sons Ltd., Paul John Whisky (John Distillery Pvt. Ltd.), King Car Group (Kavalan Distillery), and Radico Khaitan. There is a rising local as well as regional brands, offering key opportunities for the local and regional players.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
The APAC Tequila and Single Malt Market is segmented by:
The market for tequila and single malt whisky is expanding in the Asia-Pacific (APAC) region largely due to shifting customer preferences. Customers are increasingly choosing more high-end, genuine, and internationally known items over traditional and mass-produced spirits, especially younger populations and urban professionals. Customers are looking for distinctive flavor profiles, craftsmanship, and cultural backstories in the spirits they drink, indicating a noticeable trend toward experiential drinking. Similar to 2023, Asia-Pacific remained as Scotch Whisky’s largest regional market by value in 2024, supported by value increase in India (13.8%) and Japan (7.1%) compared to 2023 figures, according to The Scotch Whisky Association.
Once restricted to Western markets, tequila is becoming more popular in APAC because of its many cocktail applications and connection to contemporary, social, and fashionable lifestyles. Similar to this, consumers who are prepared to pay for exclusivity and quality are drawn to single malt whisky due to its unique flavor, handcrafted value, and premium positioning. These changing tastes have also been significantly influenced by the growth of social media, foreign travel, and growing exposure to different dining customs.
Furthermore, tequila and other spirits are becoming increasingly popular among health-conscious consumers, who view them as "cleaner" alcoholic options with less sugar than other beverages. Significant demand for premium tequila and single malt products is being driven by this collective shift in consumer attitudes in major APAC regions, including China, Japan, India, and Southeast Asia.
Traditional, regionally dominated spirits are paving the way to premium, imported, and craft beverages as consumers throughout Asia-Pacific grow more globally connected and have more sophisticated preferences. The increasing impact of Western lifestyles, social media exposure, and a growing desire for unusual, immersive drinking experiences are the main causes of this change.
In terms of regional demand, the Asia-Pacific region is expected to be a key driver of growth in the premium single malt whisky market, as consumers in countries such as China, Japan, and India increasingly develop a taste for high-end whisky. Specifically, India’s tequila and single malt markets are growing rapidly. This growth is driven by changing consumer preferences, a shift toward premium products, and unique production advantages. In the tequila segment, a new generation of urban drinkers is increasing the demand for refined spirits. The rise of cocktail culture in big cities has shifted tequila's image from a party drink to a classy choice for sipping and mixing. Consumers are attracted to its versatility, cleaner profile, and global appeal.
At the same time, the single malt category in India is seeing strong growth due to more consumers seeking premium products. As disposable incomes increase and lifestyles change, many people want high-quality, locally made spirits that showcase craftsmanship and cultural identity. Indian single malts, known for their rich flavors, have begun to take market share from imported Scotch. This trend is supported by national pride in local brands and a growing interest in exclusive and collectible whiskies.
Moreover, India anticipated pressure from the UK and the EU to reduce alcohol-related tariffs under upcoming free trade agreements (FTAs) by reducing import duties on alcoholic beverages in the budget while also enacting an equal-measure Agriculture Infrastructure and Development Cess (AIDC). The FY22 Budget imposed a 100% AIDC while maintaining the same overall tax rate and reducing the customs duty on alcoholic beverages from 150% to 50%.
Moreover, as reported by Pernod Ricard in its annual report in 2024, the sales of Indian whiskies by the company accounted for a 50% share.
Indian single malts are also distinguished because of the country’s climate, which accelerates the aging process and helps distillers create complex flavors more quickly. Along with increasing international recognition and award-winning quality, this has made Indian brands major players at the global level. Following this, in December 2024, DIAGEO India launched India Rare Spirits, a unique cask program that uses individualized craftsmanship to redefine luxury whisky ownership. Connoisseurs have the exceptional chance to own a custom-made expression of rare, aged malts that are painstakingly crafted to reflect personal preferences and narratives, owing to this initiative. A major turning point in the nation's changing spirits scene, India Rare Spirits skilfully combines tradition and innovation against the backdrop of India's rich whisky-making heritage.
Moreover, in February 2025, Amrut Distilleries and Monika Alcobev Limited announced that Amrut Kadhambam Whisky would be available at GMR Hyderabad Duty Free. Travellers therefore have a rare chance to enjoy one of Amrut's best creations, marking a significant milestone in the world of premium Indian whisky.
Together, these factors are shaping a vibrant and fast-growing premium spirits market in India, with tequila and single malts at the forefront.
APAC Tequila and Single Malt Market Segmentations:
By Product Type
By Distribution Channel