North America Mezcal Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

North America Mezcal Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The North America Mezcal Market size is expected to grow from 17.23 million liters in 2023 to 33.90 million Liters by 2028, at a CAGR of 14.50% during the forecast period (2023-2028).

Key Highlights

• The demand for mezcal, a tropical agave plant-based liquor, increased significantly over the past few years and is expected to increase the demand for mezcal in the region over the forecast period. There is a rising trend amongst wealthier consumers in established spirit markets to seek out interesting and new premium products and to trade up to drinks of a niche variety with high production value. Hence, players are launching new premium products to address the rising demand in the market.
• For instance, in September 2021, Rogue One, Inc. announced today that it had relaunched its premium mezcal brand, Fervor, in select United States markets. In the recent Human Brands International, Inc. acquisition, the company acquired Fervor, a 100% premium mezcal exclusively imported in the United States by the company import division CapCity Beverages.
• Additionally, Reposado is one of the most expensive drinks, which is majorly preferred by the young generation. The beverage can be aged six months to two years in a charred American oak barrel, which gives it an exquisite flavor and tastes compared to Joven and other drinks. The oak aging process brings out a smoky richness with caramel, creme brulee, and dusty cocoa flavors, which adds more value to the product.
• However, Joven is the most preferred drink, followed by Reposado due to its similar flavor to tequila. It is cheaper than other types as it comes unaged or aged for less than two months. The product is available in various flavors, including green apple, citrus, and white pepper. Moreover, the pandemic provided a massive opportunity for the online channel. Post-pandemic, online providers are seeing a significant increase in sales as consumers owing to the convenience and fast delivery.

North America Mezcal Market Trends

Rising Popularity of Agave-based Beverages

• America's region depicts significant potential for the agave-based beverages market compared to any other region. Agave-based beverages include Tequila, Mezcal, Raicilla, Bacanora, and Sotol. The key reason is the popularity of the mezcal drink for ages and suitable climatic conditions for the growth of agave fruit which is processed to produce mezcal. In response to the rising demand for agave-based beverages, the major players in the market are expanding their reach to reach a wider demographic.
• For instance, in September 2021, Elenita, an agave-based ready-to-drink cocktail startup, expanded its territorial reach by partnering with DSDs in response to rising demand. The California-based brand has announced the addition of Arizona to its footprint with the partnership with Hensley Beverage Company.
• Agaves or magueys are found mainly in many parts of Mexico and south to the equator, though most mezcal is made in Oaxaca. Thus, Oaxaca is the key hub for mezcal production in North America. Owing to this, Mexico has also been exporting mezcal to its neighboring countries and other parts of the world. As a result of the rising popularity of agave beverages, Mexican exports of agave spirits i.e., mezcal and tequila, have increased in recent years. According to the Distilled Spirits Council of the United States, Americans imported 26.7 million nine-liter cases of tequila and mezcal in 2021, compared with 11.9 million in 2011.

Growing Demand For Mezcal In Mexico

• Mexico possesses a high demand for mezcal as it has been consumed traditionally, and it's also the national spirit of Mexico. Mezcal is derived from agave salmiana, a native plant harvested in Central Mexico's highlands. Thus, American's growing taste in mezcal is expected to bode well for small producers across Mexico, resulting in higher export from Mexico.
• Mezcal can be produced anywhere in Mexico, although it's typically produced in the Oaxaca region (as estimated 90% right now). In the last decade or so, mezcal, especially from Oaxaca, has been exported on a large scale. The exportation has increased, and government agencies have been helping smaller-scale producers obtain the equipment and techniques needed to produce higher quantities and qualities for export. This is one of the leading causes of the rise in mezcal production in the country.
• Additionally, due to its versatility in consumption, it has gained a great deal of popularity. In addition to its ability to fill in just about anywhere tequila can, mezcal also can be incorporated into drinks that involve scotch or other whiskey-based beverages. There is also evidence that the rising popularity of mezcal in the country results from the growing number of consumers that prefer mezcal over other tequila brands due to the broad spectrum of flavor possibilities offered by mezcal.

North America Mezcal Industry Overview

The North American mezcal market is competitive, with several players manufacturing mezcal. Some of the major players in the market are Pernod Ricard, Ilegal Mezcal, Rey Campero, El Silencio Holdings Inc., William Grant & Sons Ltd, and others. The prominent players are focusing on innovation, development of different varieties of mezcal with improved tastes, along with qualities to attract new consumers and widen the consumer base in the region, new product launches, and investing in acquiring small players to gain the market share in the North American mezcal Market. The price point and style of the mezcal products sets this market apart from other alcoholic beverages. Hence, each player is working towards differentiating their product from their competitors in the best possible manner to provide value to their consumers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support