Global Tequila Market - 2023-2030

Global Tequila Market - 2023-2030

The Global Tequila Market reached US$ 10.5 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 16.1 billion by 2030. The market is growing at a CAGR of 5.5% during the forecast period 2023-2030.

The trend of premiumization is driving the growth of the tequila market. Consumers are increasingly willing to spend more on high-quality tequilas, seeking out premium and ultra-premium expressions. This trend is fueled by the perception of premium tequilas as offering superior quality, craftsmanship, and unique flavor profiles. Craft tequilas, produced in smaller batches using traditional methods and high-quality ingredients, are gaining popularity. Consumers are seeking unique and artisanal tequilas that offer distinct flavor profiles and a connection to the traditional production process.

The exploration of agave-based spirits beyond tequila is becoming a prominent trend. Consumers are showing interest in other agave spirits like mezcal, raicilla, and bacanora, appreciating their distinct flavor profiles and cultural heritage. This diversification within the agave-based spirits category is driving market growth and providing consumers with more options to explore.

Market Dynamics
Rising Cocktail Trends for Artisanal Craft Spirits are Driving the Tequila Market Growth

The popularity of artisanal craft spirits, including tequila, has been fueled by growing consumer demand for high-quality, handcrafted products. This shift towards premiumization has led to an increased interest in tequila as a sophisticated and refined spirit. For instance, DISCUS President and CEO Chris Swonger reported that sales of spirits suppliers in the US increased by 5.1 percent in 2022 to a record $37.6 billion, while volumes increased by 4.8 percent to 305 million 9-liter cases.

Artisanal craft spirits, including tequila, offer a diverse range of flavor profiles that appeal to consumers seeking new taste experiences. Craft tequila producers often experiment with aging techniques, barrel types, and unique flavor infusions, providing consumers with a broader range of options to explore. This flavor exploration trend has attracted consumers looking to try different tequilas and incorporate them into their cocktails.

Rising Consumption of Agave-Based Spirits is Driving the Tequila Market Growth

Agave-based spirits offer a wide range of flavor profiles that appeal to consumers seeking unique taste experiences. This diversity allows consumers to explore and appreciate the nuances of different agave spirits, driving the trend's growth. For instance, according to IWSR. Volumes for agave-based spirits increased globally by 18% in 2021.

Tequila, as an agave-based spirit, offers a distinctive flavor profile that sets it apart from other spirits which drives the market growth. According to IWSR, tequila had a volume share of 2.5% of the global spirits market in 2021. The blue agave plant, from which tequila is derived, imparts its unique characteristics, including earthy, herbal, and sometimes sweet notes. This flavor profile appeals to consumers seeking a different taste experience compared to traditional spirits like vodka, rum, or whiskey. The unique flavors of tequila have contributed to its growing popularity and consumer preference.

Growing Understanding of the Negative Health Impacts of Alcoholic Beverages is Restraining the Market Growth of Tequila Market

According to the WHO, alcohol use results in 58.3 million Disability-Adjusted Life Years (DALYs) and 1.8 million deaths globally (3.2% of all deaths). Hence, consumers are becoming increasingly health-conscious and mindful of their alcohol consumption. They are more aware of the potential adverse effects of excessive alcohol consumption on overall health and well-being. This heightened awareness can lead to a decrease in alcohol consumption or a shift towards healthier alternatives, impacting the market growth of tequila and other alcoholic beverages.

Research has shown that excessive and regular alcohol consumption can contribute to various health issues, including liver damage, cardiovascular problems, addiction, and certain types of cancer. As the understanding of these risks becomes more widespread, some consumers may choose to reduce their overall alcohol consumption or abstain from alcoholic beverages altogether, affecting the demand for tequila.

COVID-19 Impact Analysis
The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario, and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it to pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

AI Impact
The impact of AI on the tequila market is still emerging, but it has the potential to revolutionize various aspects of tequila production, agave cultivation, harvesting, cooking methods, fermentation, and distillation techniques. AI can be used to optimize the tequila production process by analyzing data collected during various stages of production. Machine learning algorithms can analyze production data, such as temperature, fermentation time, and aging conditions, to identify patterns and optimize parameters for consistent product quality and efficiency.

AI can also assist in agave cultivation by monitoring and analyzing factors such as soil moisture, temperature, and sunlight exposure. Sensors and AI algorithms can provide real-time insights, helping farmers optimize watering schedules, fertilizer usage, and overall agave plant health. AI can also aid in predicting optimal harvesting times based on agave maturity indicators, ensuring the agave plants are harvested at the ideal stage for tequila production.

Segment Analysis
The global tequila market is segmented based on product type, grade, distribution channel, and region.

Availability of Premium Tequila
In 2022. the premium segment has indeed captured the highest share in the tequila market based on grade. The premium segment is associated with higher-quality tequilas. Premium tequilas are made from 100% blue agave, while cheaper varieties, known as ""mixtos,"" often have 51% agave and the rest of their ingredients are sugars like molasses, corn syrup, or other sweeteners.

Premium tequilas are often associated with craft and artisanal production. They are made in smaller batches, with meticulous attention to detail, and may involve traditional production techniques such as slow-roasting the agave, using traditional stone mills, and employing copper pot stills. The craftsmanship and artisanal approach lend an air of exclusivity and authenticity to premium tequilas, attracting consumers looking for unique and handcrafted spirits.

Geographical Analysis
Changing Consumer Preferences in Asia-Pacific Region
The Asia Pacific region has seen a shift in consumer preferences towards Western spirits and a growing interest in premium and high-quality alcoholic beverages. As consumers in the region become more exposed to global trends and diverse drinking cultures, their interest in tequila has increased, driving the market growth. For instance, according to Statista, in 2020, the size of the tequila market in Asia-Pacific was 512.78 million dollars.

The rise of cocktail culture and mixology in the Asia Pacific region has significantly contributed to the growth of the tequila market. Bartenders and mixologists in cities like Tokyo, Seoul, Shanghai, and Singapore have embraced tequila as a versatile and trendy ingredient for creating innovative and unique cocktails. This has created a demand for high-quality tequilas, driving market expansion.

Competitive Landscape
The major global players include Diageo Plc., Tequila Ocho, Bacardi & Company Ltd., Vault Fine Spirits Pvt. Ltd., Charbay Distillery, Tequila Fortaleza, Proximo Spirits, Inc., Brown-Forman Corporation, Pernod Ricard S.A., Casa Aceves Spirits

Why Purchase the Report?
• To visualize the global tequila market segmentation based on product type, grade, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of tequila market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.
The Global Tequila Market Report Would Provide Approximately 61 Tables, 59 Figures and 102 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies