Tequila Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Blanco, Reposado, Anejo, Others), By Grade (Value, Premium, High End Premium, Super Premium), By Distribution Channel (On-Trade, Off-Trade) And By Geography - Forecasts From 2023 To 2028

Tequila, is a type of distilled liquor prepared from the agave plant, and can only be made in certain areas of Mexico. Distillers have to follow and abide by certain rules when making tequila, which comes in a variety of types and flavours. Tequila is consumed in various countries all over the world. It is also one of the key components in various cocktails recipes. Tequila often has a distinct, earthy taste with 30 to 35 per cent of alcoholic content. Each tequila varies a little bit depending on the style and the region in which the agave was cultivated.

Tequila is used in a long list of cocktails. Customers who recreate their favourite drinks at home frequently use tequila, such as margarita which has been around for a while and is simple to make at home. The premium and high-end type of tequilas such as anejo has experienced significant growth and development. Several recent premium launches particularly celebrity tequila brand launches have been taking place in the market. Other factors including favourable consumer feedback regarding the taste of tequila, a shift towards 100 per cent agave products, increased cocktail consumption, and expanding interest in Mexican cuisine and beverages are also expected to drive the growth of the global tequila market during the projection period.

Looking forward, innovation in terms of taste, distillation process and flavour that continues to attract customer attention will influence the future of demand for tequila. Tequila's success has led to an increase in other agave-based beverages produced outside of Mexico. Agave is being produced by distilleries more often in countries like the US and South Africa. These agave-based spirits have comparable characteristics and distillation methods to tequila and also have a local and handcrafted appeal to customers which is expected to create massive opportunities for players. The unstable price and high pressure on the supply of raw materials along with stringent rules and regulations associated with the production of tequila will obstruct the growth of the global market during the forecast period.

Explosive demand from consumers and penetration of celebrity-owned brands will support the growth of the global market of tequila during the anticipation period

People are abandoning vodka, whisky, beer etc. in favour of tequila, which is a significant upheaval in the world of spirits. The demand for tequila by consumers has been on the rise. Only premixed cocktails grew faster than tequila in the category of spirits in 2021 in the United States. Sales of distilled spirits made from agave increased by 30.1 per cent to $5.2 billion from the previous year, according to the Distilled Spirits Council of the U.S. The data from Wine and Spirit Trade Association’s latest report has shown that sales of tequila totalled £33 million in 2022, a 94 per cent increase from the previous year. Additionally, during this time 3.4 million bottles of tequila were sold in the UK's on- and off-trade combined.

The rise in demand for tequila and tequila-based cocktails has also been on the rise in bars across the world. Vodka and tequila are the most sold spirits at the hospitality behemoth MGM Resorts International, according to the renowned bartender and executive director of beverage and corporate mixologist Julian Cox at MGM resorts.

The proliferation of celebrity-owned companies has also contributed to the growth of tequila. The spirit's recognition increased as mega-celebrities like The Rock and Kendall Jenner became involved. Tequila has reached new heights as a result of the cult of celebrity's widespread exposure, which has effectively brought the spirit to millions of new customers around the world. In 2019, the Stoli Group introduced its Villa One brand of tequila in collaboration with American singer Nick Jonas, becoming one of the global beverage brand owners to join the celebrity trend. The predominance of celebrity-owned companies has contributed to the segment's increased global awareness.

North America is anticipated to hold a significant amount of the global tequila market share during the forecast period

North American region is anticipated to hold a significant amount of market share in tequila. In recent years, tequila has become more well-liked in North American countries. Tequila's popularity in the United States and Canada has grown thanks to margaritas, but customers are increasingly spreading out to discover other usage situations, such as super-premium sipping Tequilas.  Mexico is the birthplace of tequila and is also the motherland of agave plants which is the main ingredient used in the production of distilled spirit. Tequila has been consumed in large quantities in countries like the United States. For instance, Sales of distilled spirits made from agave increased by 30.1 per cent to $5.2 billion from the previous year, according to the Distilled Spirits Council of the U.S. DISCUS data also shows that Tequila volumes have increased by 180 per cent since 2002, or 6.2 per cent annually on average. 20.1 million 9-litre cases in total were sold in 2019. The influence of Mexican culture is also driving growth in this region. Tequila's ability to capitalise on wider alcohol premiumization trends in the US has also contributed to its growth in this region. While Value and Premium brands serve as the foundation of the American market, High End and Super Premium brands have had the quickest growth. Volume for High-End Brands has increased by 531% since 2002. Super Premium Tequila volumes have increased by 1042% since 2002 and presently total 4.1 million 9-litre cases. The prime market in North America includes Canada, the United States and Mexico.

Market Key Developments

• In February 2022, Avión, a Pernod Ricard-owned brand, debuted Avian Reserva Cristalino Tequila as part of its Reserva lineup. Aejo which is one year old and a little Extra Aejo Reserva which is three years old make up the recently released tequila.
• In January 2023, the largest tequila company in the world, Jose Cuervo, released a new tequila. This is the newest, 100 per cent agave Reserva de la Familia Extra Aejo, which is undoubtedly the peak quality. It comes in packaging that was specially created by two Mexican artisans.

Tequila Market Scope:

Segmentation:

• By Type
  • Blanco
  • Reposado
  • Anejo
  • Others
• By Grade
  • Value
  • Premium
  • High End Premium
  • Super Premium
• By Distribution Channel
  • On-Trade
  • Off-Trade
• By Geography
  • North America
    • USA
    • Canada
    • Others
  • South America
    • Brazil
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Others
  • Middle East and Africa
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Taiwan
    • Thailand
    • Indonesia
    • Others