Global Tequila Market Overview, 2023-28

Global Tequila Market Overview, 2023-28

Over time, there has been a consistent rise in tequila demand worldwide. As customers' understanding of the distinctive flavor profiles, adaptability, and cultural importance of tequila has grown, it has become more and more well-known around the world. Margaritas, Palomas, and Tequila Sunrises are just a few of the tequila-based drinks that are becoming more and more well-liked on a global scale. Customers who like experimenting with mixology and artisan cocktails are attracted to tequila's adaptability as a foundation alcohol in a variety of drinks. Increased disposable incomes have encouraged customers to try more expensive drinks like tequila in several nations. Consumers are increasingly inclined to spend money on premium and ultra-premium tequilas as the economy gets better. Tequila's link with Mexican culture and festivals such as Cinco de Mayo has contributed to its global appeal. Furthermore, the globalization of food and beverage trends has exposed consumers throughout the world to a variety of cuisines and traditional beverages, resulting in increased demand for tequila. The agave plant, which is utilized in the creation of tequila, has presented hurdles to the tequila business. Agave plants need several years to grow before being harvested, resulting in supply constraints and price volatility. This problem has motivated several tequila makers to look for sustainable farming practices and alternate agave supplies. While Mexico retains the global leader in tequila, there are chances for worldwide growth. To attract worldwide customers, tequila producers should concentrate on increasing their distribution networks, entering new countries, and showcasing the legacy and craftsmanship connected with tequila. Consumers are becoming more aware of the environmental and social consequences of their purchases. To satisfy customer expectations, tequila producers are embracing ecological practices such as organic cultivation, water conservation, and fair-trade programs.

According to the research report, Global Tequila Market Overview, 2023-28 published by Bonafide Research, the market is anticipated to cross USD 20.40 Billion market size by 2028, increasing from USD 14.40 Billion in 2022. The market is projected to grow with 6.10% CAGR by 2023-28. Tequila has gained popularity beyond its traditional markets, driven by increased consumer awareness, changing taste preferences, and improved availability. The demand for tequila is rising in regions such as North America, Europe, and Asia-Pacific. Governments, notably the Mexican government, have an importance in controlling tequila production, labelling, and export. The Tequila Regulatory Council (CRT) in Mexico is in charge of ensuring that the severe rules and regulations regulating tequila manufacture are followed. This involves ensuring that real agave is used, checking quality, and safeguarding the tequila designation of origin. Tequila producers participate in international trade shows and expos to showcase their products and connect with buyers and distributors from around the world. Events like Vinexpo, ProWein, and Bar Convent are platforms where tequila brands can network, explore new markets, and build business relationships. To commemorate and promote tequila, several tequila festivals and tasting events are held across the world. These events provide tequila manufacturers a chance to display their goods, educate consumers about tequila production and culture, and offer sampling experiences. Tequila and Mezcal Fest in London, Tequila & Agave Experience in Mexico, and Tequila Fest in the United States are a few examples. Tequila firms are broadening their reach through strong marketing campaigns and strategic alliances with distributors and retailers. Tequila's global development has been aided by efforts to educate customers about its history, production processes, and different flavors characteristics.

North America, primarily Mexico, is the global leader in the tequila sector. Mexico is the origin of tequila and has a long heritage and competence in the manufacturing of tequila. Outside of Mexico, the United States is the greatest importer and consumer of tequila. Tequila demand has been continuously expanding, with a special emphasis on premium and artisanal brands. Germany is one of Europe's major tequila users. With a rising interest in high-quality tequilas and premium brands, the industry has been developing. Tequila consumption has increased in the United Kingdom, with a particular emphasis on premium and super-premium tequilas. While Spain has historically preferred other spirits, tequila usage has increased in recent years. The popularity of cocktails and the emergence of premium tequila brands are driving the industry. Tequila consumption in China is increasing, mainly to increased interest in Western spirits and the popularity of cocktails. The popularity of Mexican food in Japan has increased the availability of tequila in bars and restaurants, which has helped to the market's rise. Brazil's tequila industry is expanding, with rising demand for high-quality tequilas. The popularity of tequila-based drinks, as well as the launch of premium brands, are driving the industry. In comparison to other locations, the Middle East has a minor tequila market. However, there is a growing consumer interest in tequila, notably in nations such as the United Arab Emirates and Saudi Arabia. Tequila usage in Africa is modest in comparison to other areas. However, as tequila and cocktails gain popularity across the world, there is potential for rising demand in particular African countries.

Tequilas are often classified into numerous classes in the worldwide tequila business based on variables like as quality, manufacturing practices, and price ranges. Tequila is divided into four categories: value, premium, high-end premium, and super premium. Value range tequila are majorly consumed, because of their lower price point, value-priced tequilas are frequently more accessible to a larger consumer base. Because of this, they are appealing to price-conscious consumers who are searching for a budget-friendly solution or want to try tequila without making a large financial investment. Value-priced tequilas can be an entrance point for customers who are new to tequila or are trying it for the first time. The four fundamental types of tequila are blanco (silver), reposado, anejo, and extra anejo. Blanco tequila is distinguished by its purity and youth. It is often regarded as the most authentic tequila because it allows the inherent flavors of the agave plant to come through without the effect of oak ageing. Blanco tequila's adaptability appeals to both bartenders and customers, leading to its popularity. Blanco tequila is perfect for blending in cocktails because to its vivid agave flavours and silky finish. Blanco tequila has grown in popularity due to the growth of artisan tequila makers. Based on distribution channels, the global tequila market is divided into two major categories, off-trade and on-trade. The selling of tequila through retail establishments for consumption off-premises is referred to as the off-trade distribution channel. Liquor stores, supermarkets, hypermarkets, convenience stores, internet platforms, and duty-free shops are among the retail types mentioned. Tequila sales at on-premises establishments such as bars, restaurants, hotels, clubs, and lounges are included in the on-trade distribution channel.

Major Companies present in the market:

Considered in this report

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Regions & Countries covered in the report:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Aspects covered in this report

• Global Tequila market with its value and forecast along with its segments
• Region-wise Tequila market analysis
• 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.

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