Tequila Market Size, Share, Competitive Analysis & Forecast, 2032

Market Overview -The global tequila market size was valued at USD 11.04 billion in 2023 and is projected to grow from USD 11.69 billion in 2024 to USD 18.58 billion by 2032, exhibiting a CAGR of 5.97% during the forecast period. North America dominated the tequila market with a market share of 62.14% in 2023. Tequila is a Mexican distilled spirit made from the juices of the Weber blue agave plant. According to the International Wine and Spirit Research (IWSR), the blue agave plant distilled beverage is the second-fastest-growing spirit in its category in recent years. The growing trend of artisanal spirits has nudged international liquor companies to exploit the beverage’s barrel-aged variants and introduce innovative flavors.

List of Key Market Players:

• Pernod Ricard S.A. (France)

• Diageo Plc (U.K.)

• Bacardi Limited (Bermuda)

• Suntory Holdings Limited (Japan)

• Heaven Hill Distilleries, Inc. (U.S.)

• Campari Group (Italy)

• Sazerac Company Inc. (U.S.)

• Brown-Forman Corporation (U.S.)

• Casa Aceves (Mexico)

• Constellation Brands, Inc. (U.S.)

Segmentation-By Type, Blanco to Account for Major Market ShareOn the basis of type, the market is divided into blanco, reposado, anejo, and others. The blanco variants account for a significant market share owing to their earthy, semi-sweet, distinctive agave flavor. Its smoother taste and vast availability result in its wide consumption. The broad use of blanco variants in various cocktails such as margaritas and Palomas contributes to the segment's market dominance.

By Grade, Premium Variant to be Leading SegmentThe premium variant is anticipated to lead the tequila market share as consumers demand high-quality craft spirits. The premium-grade spirit combines desirable attributes that consumers cherish, including sensory appeal, mouthfeel, and texture. The demand for such luxury spirit variants is primarily driven by youngsters and millennials.

By Distribution Channel, On-Trade Sales to be the Major Distribution ChannelThe on-trade sales channel is one of the most prominent alcohol sales channels and is anticipated to dominate the market share. Consumers in developed economies prefer quick servings, entertainment, and ambiance, which drives on-trade sales. However, the off-trade channel is witnessing strong growth as purchasing alcohol from supermarkets and brick-and-mortar stores is much more economical.

Source: https://www.fortunebusinessinsights.com/tequila-market-104172

Report Coverage-The market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible segments. Various key insights presented in the tequila market report are an overview of related markets, recent industry developments such as mergers and acquisitions, the regulatory scenario in critical countries, and key industry trends.

Drivers & Restraints-Market Growth is driven by Consumers' interest in New Flavors and Exotic TastesOne of the prominent factors driving demand for blue agave plant-based distilled spirits is the rising popularity of various artisanal spirits among consumers across the globe. Consumers worldwide demand fresh and delicious exotic drinks for a unique taste, thereby propelling market growth. Key manufacturers are introducing new flavors to attract consumers and explore new taste profiles. However, in developed countries, there is a growing inclination of consumers towards low and non-alcoholic beverages due to rising awareness about the ill effects of consuming alcohol. This factor may impede the tequila market growth.

Regional Insights-North America Held the Dominant Position in the MarketNorth America dominated the market, valued at USD 6.86 billion in 2023. This is due to the growing consumer inclination towards agave-based spirits in the U.S. and Mexico. According to the Distilled Spirits Council of the U.S., tequila was the second-fastest-growing spirits category in 2021. Consumers are becoming more aware of higher-quality spirits, choosing to trade up and understand the various aging processes and production regions.

The European market is likely to exhibit significant growth due to the increasing popularity of artisanal spirits in Germany, Spain, and the U.K. With its craftsmanship, heritage, and protected status (GI), tequila is well-positioned to benefit from the popularity of craft spirits in the region, where more drinkers are looking to 'drink better' and turning to premium brands.

In the Asia Pacific, the spirit has gained recognition among consumers, especially millennials in countries like China and Australia. The increasing imports and consumers seeking quality over quantity and preferring spirits made in small batches have supported market growth.

Latin American countries such as Brazil and Argentina are witnessing an upsurge in alcohol consumption, which is likely to contribute to the overall regional performance. The Middle East and Africa are observing premiumization and innovation trends in white spirits, which supports tequila market growth.

Competitive Landscape-To Remain Competitive, Companies Need to Introduce New VariantsThe market is moderately consolidated due to the product's extensive production in Mexico and the U.S. and the presence of prominent key players innovating and launching their products worldwide. Companies such as Bacardi & Company Ltd., Diageo Plc, and Pernod Ricard S.A. are focusing on new product developments and increasing their exports to diversify their product portfolio and maintain a competitive advantage.

Notable Industry Development-January 2024: Don Julio, a Diageo-owned tequila brand, launched Alma Miel, a blend of both añejo and blanco Tequilas with oven-roasted agave nectar.