Canada Tequila Market Overview, 2028

Canada Tequila Market Overview, 2028

Tequila which includes specific requirements for the types of agave plants used, the production process, and the geographical origin. Tequila has experienced a surge in popularity in Canada over the past decade. Consumers have shown increased interest in premium and artisanal tequilas, leading to a wider variety of tequila brands being available in the market. Canada relies heavily on imports to meet its tequila demand since the country does not produce tequila domestically. The majority of tequila consumed in Canada is imported from Mexico, the birthplace of tequila. The Canadian Food and Drug Regulations mandate that tequila must meet specific requirements to be labeled as such. Tequila imports must meet the standards set by the Tequila Regulatory Council (CRT) in Mexico. This ensures that tequila sold in Canada is authentic and adheres to the quality standards defined by the CRT. Tequila-based cocktails have gained popularity in Canada, with classics like Margaritas and Palomas being widely consumed. The growing interest in mixology and craft cocktails has also contributed to the demand for tequila. With the rise in interest for tequila, there has been an increase in educational events and tasting experiences across Canada. These events provide opportunities for consumers to learn about tequila production processes, tasting notes, and food pairings. They aim to enhance consumer knowledge and appreciation for tequila as a premium spirit.

According to the research report Canada Tequila Market Overview, 2028, published by Bonafide Research, The Canada Tequila market is expected to grow at above 6.68% CAGR from 2023 to 2028. The Canadian government does play a role in regulating the importation, sale, and labeling of tequila, ensuring compliance with the Canadian Food and Drug Regulations and the standards set by the Tequila Regulatory Council (CRT) in Mexico. Some ways in which the government engages with the alcohol industry, including the tequila market, in Canada such as Regulatory Framework, Importation and Customs, Liquor Control Boards or Commissions, Licensing and Permits, Alcohol Advertising and Marketing. The Canadian tequila market can be segmented into various categories, including Blanco (silver), reposado (aged up to 1 year), añejo (aged 1-3 years), and extra añejo (aged more than 3 years). In the Canadian tequila market, Blanco and Reposado tequilas are often the leading types in terms of popularity and sales. Some of the reasons behind their prominence such as Blanco tequila is typically a popular choice due to its versatility and use in various cocktails, particularly the iconic margarita. Blanco tequila offers a vibrant and agave-forward flavor profile, making it appealing to both tequila enthusiasts and casual drinkers. Its clear color and crisp taste make it an excellent base for mixed drinks, allowing the flavors of other ingredients to shine through. Reposado tequila, with its brief aging period in oak barrels (two months to a year), offers a balance between the raw agave flavors of Blanco and the more complex, mellow characteristics of Añejo. This type of tequila appeals to a broad range of consumers who appreciate the added depth and smoothness that aging imparts. Reposado tequila is often enjoyed neat or on the rocks, allowing drinkers to savor its nuanced flavors. Some brand names associated with each type of tequila in Canada are Blanco are Patrón Silver, Don Julio Blanco, Jose Cuervo, Tradicional Silver, El Jimador Blanco, Cazadores Blanco. Brand Reposado are Don Julio Reposado, 1800 Reposado, Casamigos Reposado, Milagro Reposado, Herradura Reposado. Añejo includes, Don Julio Añejo, Herradura Añejo, Casamigos Añejo, Patrón Añejo, El Tesoro Añejo.

In the Canadian tequila market, tequilas are often categorized into different grades based on their quality, production methods, and pricing. There are the general classifications of tequila grades in Canada includes Value-grade tequilas are typically more affordable and accessible options. They are often mass-produced and may have simpler flavor profiles. These tequilas are suitable for mixing in cocktails or for those looking for an entry-level tequila experience. Premium-grade tequilas are a step above value-grade tequilas in terms of quality and craftsmanship. They are usually made from higher-quality agave and undergo more refined production processes. High-end premium tequilas represent a higher tier of quality and craftsmanship. These tequilas offer more sophisticated flavors, smoothness, and complexity. Super premium tequilas are considered the pinnacle of tequila quality. They are produced in limited quantities and are known for their exceptional craftsmanship, premium ingredients, and extensive aging processes. In the Canadian tequila market, tequilas are typically distributed through two primary channels: off-trade and on-trade. The off-trade distribution channel refers to the retail sector where tequila is sold for off-premise consumption. This includes liquor stores, supermarkets, specialty beverage retailers, and online platforms. Consumers can purchase tequila bottles to enjoy at home or for gifting purposes. The off-trade channel allows individuals to explore a wide range of tequila brands and types, offering convenience and variety. Simultaneously, the on-trade distribution channel refers to the hospitality sector, including bars, restaurants, clubs, and other establishments where tequila is consumed on-premise. In the on-trade channel, customers can order tequila-based cocktails, shots, or enjoy tequila as part of their dining experience. This channel provides an opportunity for consumers to experience different tequila brands and variations through professional mixology and curated menus. The Canadian tequila market was experiencing several key trends and presenting opportunities for tequila brands. Rising Popularity and Consumption, Premiumization and Craft Movement, Education and Tasting Experiences, Agave Spirits and Mezcal, Online Retail and E-Commerce, Sustainability and Social Responsibility.

Considered in this report
• Geography: Canada
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Canada Tequila market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Blanco
• Reposado
• Anejo
• Others

By Grade

• Value
• Premium
• High - End Premium
• Super Premium

By Distribution Channel

• Off-Trade
• On-Trade

By off-trade Distribution Channel

• Supermarkets and Hypermarkets
• Discount Stores
• Online Stores
• Others

By On-trade Distribution Channel

• Restaurants and Bars
• Liquor Stores
• Others

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us. we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Tequila industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.