Global Tequila Market Report and Forecast 2024-2032

Global Tequila Market Outlook

The global tequila market size attained approximately USD 11.87 billion in 2023. The market is estimated to grow at a CAGR of 6.00% in the forecast period of 2024-2032, reaching a value of around USD 20.07 billion by 2032.

Tequila, originating from Mexico, is a distilled beverage made primarily from the juices of the blue agave plant. It is an alcoholic beverage that can be enjoyed neat or used as a base for cocktails.

Tequila is most often made at a 38–40% alcohol content, but it can be produced between 31–55% alcohol content as well. The ageing process imparts different flavours and characteristics to the tequila. The spirit has a protected designation of origin (PDO), meaning that it can only be produced in certain regions of Mexico.

This is similar to how champagne must be from the Champagne region of France. Tequila is commonly served neat in Mexico and, as a shot, with salt and lime across the rest of the world. It is also a popular ingredient in cocktails like the margarita and the tequila sunrise.

Key Trends in the Market

The rising popularity of mixology

The growing popularity of mixing various spirits to formulate a cocktail drink is one of the prominent tequila market trends. Mixologists are experimenting with a variety of tequilas to cater to the burgeoning consumer interest in unique flavoured cocktails.

There has been a resurgence in cocktail culture globally, with mixologists and bartenders experimenting with a variety of spirits, including tequila, to create innovative and unique drinks. This has led to a broader acceptance and appreciation of tequila-based cocktails beyond the classic margarita, such as the Paloma, Tequila Sunrise, and various craft cocktails.

Consumers, particularly in the younger demographics, are increasingly adventurous and open to trying new and diverse flavours. Tequila offers a distinct taste profile that pairs well with a wide range of ingredients, making it a popular choice for new and experimental cocktail recipes.

The emerging trend of premiumisation

Increased trend of premiumisation in spirits due to evolving consumer drinking habits, rise in disposable income, and rapid urbanisation is expected to boost the demand for high-end and sophisticated tequila-based drinks, favouring the tequila market demand.

Consumers, especially millennials and Gen Z, are increasingly seeking quality over quantity in their alcohol consumption. This shift is characterized by a preference for unique, artisanal, and premium spirits, reflecting a broader desire for authenticity and craftsmanship. With rising disposable incomes, especially in urban areas, consumers are more willing to spend on luxury items, including high-end spirits. This financial ability allows for experimentation with more expensive, premium tequilas.

Urban settings often foster a culture of socialising in bars, clubs, and restaurants, where the demand for premium spirits is typically higher. Urban consumers are exposed to a broader array of cocktail trends and have greater access to upscale hospitality venues.

Growing efforts by market players to introduce new products

Efforts by market players to expand their product line by introducing new flavours such as floral, turmeric, pumpkin, and grapefruit, among others, are also expected to fuel the tequila market growth.

By offering a diverse range of flavoured tequilas, brands can differentiate themselves in a competitive market. This innovation not only attracts new customers but also provides existing customers with new options, potentially increasing brand loyalty and market share.

Flavoured tequilas can appeal to a broader audience, including those who might not typically enjoy traditional tequila. For example, someone who enjoys fruit-flavoured beverages might be more inclined to try a grapefruit-flavoured tequila. The popularity of cocktails has also led to a demand for versatile spirits that can be used as a base for a wide range of mixed drinks. Flavoured tequilas naturally lend themselves to this trend, offering mixologists and consumers new avenues for creative cocktail creation.

Incorporation of sustainable methods in the tequila production process

Several tequila brands are implementing sustainable methods such as the utilisation of rainwater for agave irrigation and the conversion of leftover agave into compost to reduce the environmental impact of agave plant production and meet the evolving demands of environmentally conscious customers.

Rainwater harvesting is a sustainable water management practice that can significantly reduce the water footprint of agave cultivation. After the tequila production process, the leftover agave fibres (bagasse) can be a substantial waste product. Converting this agave waste into compost is an eco-friendly way of managing this byproduct. The compost can be used to enrich the soil, reducing the need for synthetic fertilisers and promoting healthier agave growth.

There is a growing segment of consumers who are environmentally conscious and prefer to support brands that demonstrate a commitment to sustainability. By implementing eco-friendly practices, tequila brands can appeal to these consumers and strengthen their market position.

Tequila Market Segmentation

Based on product type, the market is classified into blanco, joven, mixto gold, reposado, and anejo. The market segmentation, on the basis of price range, includes standard, premium, and super-premium and ultra-premium.

Based on the distribution channel, the market is bifurcated into B2B and B2C. The B2C segment is further categorised based on type into supermarkets and hypermarkets, speciality stores, and online, among others. The major regional markets for tequila are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the tequila market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• Bacardi Limited  

• Diageo Plc  

• Constellation Brands, Inc.  

• Pernod Ricard S.A.  

• Beam Suntory Inc.  

• Ambhar Global Spirits, LLC 

• Brown-Forman Corporation  

• Davide Campari-Milano N.V  

• Casa Aceves  

• Proximo Spirits, Inc.  

• Others

Market Share by Product Type

Blanco occupies a substantial portion of the global tequila market share due to its earthy and distinct flavour. Furthermore, its easy availability and high concentration of alcohol also contribute to its high demand among consumers. It makes an excellent base for cocktails due to its clean and bold flavour and its ability to be mixed in a variety of drinks, ranging from classic margaritas to exotic cocktails. Additionally, it is a preferred drink of choice among health-conscious consumers due to the presence of fewer additives and sugar compared to other traditional spirits.

Compared to aged tequilas like Reposado, Añejo, or Extra Añejo, Blanco tequila is generally more affordable. This makes it an accessible option for a broad range of consumers, including those who are new to tequila or who are looking for a high-quality spirit at a more moderate price point. The influence of Mexican culture and the global trend towards embracing diverse and ethnic spirits have also played a role in the popularity of Blanco tequila. Additionally, the trend of clean drinking and preference for spirits with fewer additives or ageing-related alterations supports the demand for Blanco tequila.

Market Share by Region

As per the tequila market analysis, North America accounts for a sizeable share of the global market due to the high demand for agave-based spirits. The demand for premium quality spirits is also on the rise, which prompts manufacturers to produce tequila with natural flavours. Moreover, increased implementation of tequila in crafting different cocktail drinks also provides market growth opportunities.

The cocktail culture in North America, especially in the United States, has significantly influenced the market. Classic tequila-based cocktails like Margaritas and Tequila Sunrises are perennial favourites, and there is an ongoing innovation in cocktail recipes involving tequila. This trend has helped maintain high demand for tequila.

The North American market is characterised by a diverse consumer base. While there is a strong traditional consumption among the Hispanic community, tequila has gained widespread popularity across various demographics, partly due to its versatility and the influence of Mexican culture.

Meanwhile, Latin America is witnessing significant growth as Mexico has several regulatory laws that monitor the quality of soil and water at tequila distilleries to boost the production of agave plants in the country.

Competitive Landscape

Bacardi Limited, established in 1862, is a privately held spirits company with its headquarters in Hamilton, Bermuda. Some of its popular products include rum, vodka, tequila, wine, and beer, among others.

Diageo Plc, a multinational alcoholic beverages company, was incorporated in 1997 and based in London, the United Kingdom. Its product portfolio includes tequila, scotch, whisky, gin, and non-alcoholic products.

Constellation Brands, Inc. is one of the leading manufacturers of alcoholic beverages and was founded in 1945. The company, based in New York, the United States, produces its products under the brand names Corona Light, Corona Premier, Casa Noble, and Mi CAMPO, among others.

Other tequila market players include Pernod Ricard S.A., Beam Suntory Inc., Ambhar Global Spirits, LLC, Brown-Forman Corporation, Davide Campari-Milano N.V, Casa Aceves, and Proximo Spirits, Inc., among others.

Key Highlights of the Report

Tequila Market Report Snapshots

Tequila Market Size

Tequila Market Share

Tequila Market Regional Analysis

Tequila Companies