Tequila Market

Market Synopsis:

The Global Tequila Market was valued at USD 9.50 Billion in 2022 and is expected to reach a value of USD 14.69 Billion by 2030. The Global Market is anticipated to grow to exhibit a Compound Annual Growth Rate (CAGR) of 5.60% over the forecast period.

The Weber blue agave plant's juices are fermented to create the Mexican distilled drink known as tequila. The second-fastest growing spirit in recent years, according to the International Wine and Spirit Research (IWSR), is a distilled beverage made from blue agave plants. Instead of being drunk in shot form with a wedge of lemon, it has evolved into a spirit to be sipped and enjoyed. One of the key factors boosting demand for distilled spirits made from blue agave plants is the increasing acclaim that various artisanal spirits are receiving from consumers all over the world. Tequila Market expansion is fueled by consumers' need for excellent exotic beverages with a fresh taste across the globe. Also, premiumization has become a trend in recent years as consumers are inclining toward quality over quantity.

Consumers' preference for sophisticated and high-end beverages consequently increases demand for these goods. The industrialized countries are anticipating a shift in consumer preference toward low- and non-alcoholic beverages as spirits use have increased recently, particularly in developing regions. Their growing awareness of the negative effects of alcohol consumption has caused people to resort to low- or no-alcohol drinks because they taste exactly like alcoholic beverages without the negative consequences.

Market Segmentation:

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The Tequila Market is segmented on the premise of Type, Grade, Distribution Channel, and Region. Based on Type, the market is further segmented as Blanco, Reposado, Anejo, and Other Types. Furthermore, based on the Grade segment, the market is further segmented into Value, Premium, High-End Premium, and Super Premium. Likewise, based on the Distribution Channels, the market is further segmented into On-Trade and Off-Trade.

Based on Type:

The Blanco variants account for the significant Tequila Market share owing to their earthy, semi-sweet, distinctive agave flavor. Because of its greater availability and nicer taste, it is widely consumed. Holding the largest proportion of the market is a result of the widespread use of Blanco variations in numerous cocktails, including margaritas and Palomas. Variants of reposado and Anejo have been very popular recently as customers have become more aware of the spirit and open to trying new kinds. Reposado and Anejo, in contrast to Blanco, are finished with distinctive honey and smokey flavor by being matured in oak barrels for a month to a year.

Based on By Grade:

The Premium variant is anticipated to hold the largest share as consumers demand high-quality craft spirits in the forecast period. The Premium Grade spirit combines all coveted qualities, including texture, mouthfeel, and sensory appeal, which are highly regarded by consumers. The market is primarily being driven by young people and millennials who prefer these high-end spirit varieties. High-End Premium and Super Premium products are among the fastest growing categories due to consumers changing attitudes and willingness to spend more on drinks. Also, the Super Premium and Super Premium spirits grew by 6-7% per year by volume.

North America had a Major Share and is Projected to Continue its Dominance over the Forecast Period

In 2021, the market in North America was valued at USD 6.09 billion. This is a result of American and Mexican customers' rising preference for agave-based alcohol. Only premixed cocktails grew faster than Tequila as a category of alcohol. Tequila consumption has increased by 40% over the past five years, making it one of the alcoholic beverages with the greatest growth in the United States. The category has changed to accommodate various tastes and preferences, which has helped the spirit's popularity increase dramatically in recent years.

Along with this, customers are upgrading their spirits as they become more aware of higher-quality options. They are aware of the various maturing techniques, terroir, and the locations where Tequila is made. To take the experience to a new level, the producers in the area produce blanco with a clear, smooth quality and entirely natural flavours. Tequila sales in the area are also anticipated to benefit from the increased celebrity interest in the drink.

Competitive Landscape:

The key players in the Global Tequila Market include- 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 (México), Constellation Brands Inc. (U.S.) and others.

Segmentation of the Global Tequila Market: