1 Global Tequila Market Insight Analysis
The global Tequila market is valued at USD 10,935.71 million in 2024, with a CAGR of 11.78% from 2024 to 2033.
Tequila is an alcoholic drink made from the heart of the agave plant, which belongs to the category of distilled spirits. The young tequila has prominent acidity with notes of citrus and coffee. The aged agave has a rounder and softer taste, developing woody, vanilla, and caramel flavors similar to aged whiskey. Tequila is often used as a base wine to make various cocktails, and it can compete with whiskey and vodka. It is the national drink of Mexico.
Figure Global Tequila Market Size (M USD) and CAGR (2024-2033)
2 Tequila Market Growth Drivers and Restraints
In terms of driving factors, the growth of consumer demand for premium spirits has significantly promoted market development. In recent years, consumers have become more and more focused on quality, and premiumization has become a trend. They are willing to pay higher prices for high-quality tequila. According to data from the International Wine and Spirits Research Institute (IWSR), consumer demand for premium spirits and cocktails has led to the spread of premiumization trends in European countries.
Consumers have turned their attention to craft breweries and locally produced beverages. Small craft breweries have brought new flavors and products to tequila, attracting more consumers and driving market growth. At the same time, the accelerated urbanization of middle-class consumers, increased disposable income, and changes in consumption habits have further stimulated the demand for premium tequila.
The rising interest of consumers in new and exotic flavors is also promoting market growth. Global consumers have a strong demand for fresh, delicious exotic beverages, which has driven the development of the spirits market based on blue agave. Major manufacturers such as Patron Spirits International have launched a variety of special flavors, such as floral, black pepper, turmeric and pumpkin, to attract consumers to explore new flavors.
For example, in 2021, Rock N Roll of the Casa Aceves brand launched strawberry-flavored tequila, which was welcomed by the market as the first premium strawberry-flavored tequila in the United States. In addition, the rise of cocktail culture has greatly increased consumers’ interest in tequila-based cocktails, such as Paloma and El Diablo. Many beverage manufacturers have followed the trend and launched cocktail kits and virtual bartending courses to meet consumers’ needs for making cocktails at home, further promoting the sales of tequila.
However, the growth of the tequila market also faces many limiting factors. Fluctuations in the supply of raw materials are a major challenge. As the main raw material, tequila has a shortage and surplus in the market, and its price fluctuates greatly. The growth cycle of tequila is as long as 7-10 years. When the supply is insufficient and the price rises, farmers will increase planting, but the newly planted tequila will be put on the market after maturity, which will lead to oversupply and price drops, which will affect farmers’ enthusiasm for planting and reduce the planting volume.
This fluctuation affects the production and price of tequila, bringing uncertainty to the production operations and profits of enterprises. Small brands are more affected and may use immature agave or produce mixed liquor, which will affect product quality and accelerate the shortage of raw materials in the future.
The problem of counterfeit products also seriously restricts the development of the market. Counterfeit tequila is flooding the market, reducing consumers’ tasting experience and endangering their health. In areas with low tequila penetration, bars and KTVs are the hardest hit by counterfeit and inferior products. The complex taste and diverse mixing methods of cocktails increase the difficulty for consumers to distinguish the authenticity.
Despite the continuous governance of regulatory authorities and the improvement of consumers’ ability to distinguish, counterfeit products are repeatedly banned under the temptation of high profits, which has a negative impact on the future development of the industry. In addition, the rise of low-alcohol beverages has also impacted the tequila market. As consumers’ health awareness increases and the demand for low-alcohol and non-alcoholic beverages increases, such products are gradually regarded as a lifestyle and social norm, and their market share continues to expand. Manufacturers have laid out in this field and launched a variety of low-alcohol and non-alcoholic beverages, which may inhibit the sales growth of tequila.
3 Technological Innovations in the Tequila Market
In the field of technological innovation, technological improvements in the tequila production process run through multiple links. In the planting stage, although the growth cycle of tequila is long and is restricted by natural conditions, some companies and research institutions have begun to explore and optimize planting techniques to improve the yield and quality of tequila. For example, studying more suitable planting environments and cultivating excellent varieties are expected to shorten the growth cycle, enhance the resistance of plants to diseases and pests, and ensure a stable supply of raw materials.
In the brewing stage, technological innovation is mainly focused on improving production efficiency and optimizing product taste. Some companies have introduced advanced fermentation and distillation technologies to accurately control parameters such as fermentation temperature and time, making the flavor of tequila more unique and the quality more stable.
Advanced filtering and aging technologies also help to improve the purity and taste of the wine and meet consumers’ demand for high-quality products. In addition, with the development of digital technology, tequila companies have begun to use big data and Internet of Things technologies to optimize production processes and manage supply chains. By real-time monitoring of the operating status of production equipment, the inventory of raw materials, and changes in market demand, companies can organize production more efficiently, reduce costs, and increase market response speed.
Mergers and acquisitions are also an important development trend in the tequila market, which has a profound impact on the market competition. Many well-known companies continue to expand their business territory and enhance their market competitiveness through mergers and acquisitions. In 2021, Diageo announced the acquisition of Mezcal Unión, which was achieved through the acquisition of Casa UM.
Since its establishment in 2011, Mezcal Unión has expanded its sales network in Mexico, the United States and other countries. Diageo’s acquisition aims to further expand its share in the tequila and related spirits market with the help of its brand influence and market channels. At the same time, the founder of Mezcal Unión will continue to participate in the business to help the future development of the brand and the construction of local communities. In the same year, Bacardi completed the acquisition of 51% of Conor McGregor’s Proper No. Twelve Irish Whiskey brand for US$244 million.
This acquisition not only enriched Bacardi’s product portfolio, but also increased its brand awareness and market influence with the help of Conor McGregor’s star effect. Boston Beer Company and Beam Suntory have established a “long-term strategic partnership” and have established a joint venture to jointly expand their brands. Boston Beer Company’s Truly Hard Seltzer will expand into the bottled spirits field, and Beam Suntory’s Sauza Tequila brand will launch ready-to-drink cocktail products. Through this cooperation, the two parties have achieved resource sharing, complementary advantages, and enhanced their competitiveness in the spirits market.
4 Global Tequila Market Size by Type
100% Agave Tequila is the premium segment of the tequila market, known for its superior quality and authentic flavor profile. This type of tequila is made exclusively from blue agave, ensuring a pure and rich taste. In 2024, the sales of 100% Agave Tequila are expected to reach 51,632 thousand nine-liter cases, representing 66.23% of the total global tequila market. This segment is characterized by higher prices and a focus on quality, making it popular among consumers who prefer premium spirits.
The growth of 100% Agave Tequila is driven by several factors. Firstly, consumers are increasingly seeking out high-quality spirits, driven by a trend towards premiumization. This trend is particularly evident in developed markets such as North America and Europe, where consumers are willing to pay a premium for authentic and high-quality products. Additionally, the rise of cocktail culture has led to a greater demand for 100% Agave Tequila, as it is often used as a base for sophisticated cocktails.
Mixto Tequila, on the other hand, is a blend of at least 51% blue agave sugars and other sugars. This type of tequila is generally more affordable and accessible, making it popular among a broader consumer base. In 2024, Mixto Tequila sales are projected to reach 26,331 thousand nine-liter cases, accounting for 33.77% of the total global tequila market.
The market for Mixto Tequila is driven by its affordability and versatility. It is often used in a variety of cocktails and mixed drinks, making it a popular choice for bars and restaurants. Additionally, the growing interest in tequila-based cocktails has also boosted the demand for Mixto Tequila, as it provides a cost-effective alternative to 100% Agave Tequila while still delivering a high-quality drinking experience.
Table Global Tequila Market Size and Share by Type in 2024
Type | Sales (K Nine-liter Cases) 2024 | Market Share 2024 |
|---|---|---|
100% Tequila | 51632 | 66.23% |
Mixto Tequila | 26331 | 33.77% |
5 Global Tequila Market Size by Application
Entertainment Parties and Bars are the largest segment of the tequila market, driven by the rising popularity of tequila-based cocktails and the vibrant nightlife industry. In 2024, this segment is projected to account for 47,303 thousand nine-liter cases, representing 60.67% of the total global tequila market. The growth in this segment is attributed to the increasing demand for premium spirits in bars and clubs, as well as the trend of consumers experimenting with new and exotic cocktails. Tequila’s versatility as a base spirit makes it a popular choice for bartenders and mixologists, further driving its consumption in this application.
Family Drinking is another significant application of tequila, particularly in regions where tequila is a cultural staple. In 2024, this segment is expected to reach 23,614 thousand nine-liter cases, accounting for 30.29% of the total market. The growth in this segment is driven by the increasing popularity of tequila as a household spirit, particularly in North America and Europe. Consumers are increasingly choosing tequila for its unique flavor profile and versatility, making it a popular choice for family gatherings and casual drinking.
Corporate Hospitality is a smaller but growing segment of the tequila market. In 2024, this application is projected to account for 2,705 thousand nine-liter cases, representing 3.47% of the total market. The growth in this segment is driven by the increasing use of tequila in corporate events and hospitality settings. Companies are recognizing the premium status of tequila and are incorporating it into their event planning and hospitality offerings, further driving its consumption in this application.
Table Global Tequila Market Size and Share by Application in 2024
Application | Sales (K Nine-liter Cases) 2024 | Market Share 2024 |
|---|---|---|
Entertainment Parties and Bars | 47303 | 60.67% |
Family Drinking | 23614 | 30.29% |
Corporate Hospitality | 2705 | 3.47% |
Others | 4340 | 5.57% |
6 Global Tequila Market Size by Region
North America is the largest regional market for tequila, driven by strong consumer demand and a vibrant nightlife industry. In 2024, North America is projected to account for 47,002 thousand nine-liter cases, representing 60.29% of the total global tequila market. The United States is the primary driver of this market, with significant consumption in bars, restaurants, and family settings. The growth in this region is driven by the increasing popularity of tequila-based cocktails and the premiumization trend, where consumers are willing to pay more for high-quality spirits.
Europe is the second-largest regional market for tequila, driven by its rich cultural heritage and growing interest in premium spirits. In 2024, Europe is expected to account for 7,970 thousand nine-liter cases, representing 10.22% of the total global tequila market. The growth in this region is driven by the rising popularity of tequila in countries such as the UK, Germany, and France, where consumers are increasingly experimenting with new and exotic flavors. The cocktail culture in Europe is also driving the demand for tequila, as bartenders and mixologists incorporate it into their creations.
The Asia-Pacific region is a rapidly growing market for tequila, driven by increasing urbanization and rising disposable incomes. In 2024, the Asia-Pacific region is projected to account for 7,438 thousand nine-liter cases, representing 9.54% of the total global tequila market. Key markets in this region include China, Japan, and Australia, where tequila is gaining popularity among younger consumers. The growth in this region is also driven by the increasing number of bars and restaurants offering tequila-based cocktails, as well as the rising interest in premium spirits.
Latin America is a significant market for tequila, driven by its cultural heritage and strong consumer demand. In 2024, Latin America is expected to account for 12,544 thousand nine-liter cases, representing 16.09% of the total global tequila market. Mexico is the primary driver of this market, with significant consumption in both bars and family settings. The growth in this region is also driven by the increasing popularity of tequila in countries such as Brazil and Argentina, where consumers are increasingly experimenting with new and exotic flavors.
The Middle East & Africa region is a smaller but growing market for tequila, driven by increasing urbanization and rising disposable incomes. In 2024, this region is projected to account for 3,009 thousand nine-liter cases, representing 3.86% of the total global tequila market. Key markets in this region include the UAE, Saudi Arabia, and South Africa, where tequila is gaining popularity among younger consumers. The growth in this region is also driven by the increasing number of bars and restaurants offering tequila-based cocktails, as well as the rising interest in premium spirits.
Figure Global Tequila Sales (K Nine-liter Cases) by Region in 2024
7 Global Tequila Market Analysis by Major Players
7.1 Diageo (Casamigos)
Company Introduction and Business Overview:
Diageo Plc is a leading multinational alcoholic beverages company headquartered in London, UK. Established in 1997, Diageo has a diverse portfolio of spirits, beers, and wines, including iconic brands such as Johnnie Walker, Smirnoff, and Guinness. Diageo’s tequila brand, Casamigos, has gained significant popularity for its high-quality products and authentic Mexican heritage.
Diageo’s business strategy focuses on innovation, sustainability, and responsible drinking. The company operates through owned and leased manufacturing facilities, distilleries, and packaging plants. Diageo distributes its products globally through a network of independent wholesalers, retailers, and subsidiary companies. The company’s commitment to sustainability and social responsibility is evident in its initiatives to reduce environmental impact and promote responsible drinking.
Products:
Diageo’s tequila portfolio includes Casamigos, a premium tequila brand known for its smooth and authentic taste. Casamigos offers a range of products, including Blanco, Reposado, and Añejo, each crafted from 100% blue agave and aged to perfection. The brand’s commitment to quality and authenticity has made it a favorite among tequila connoisseurs.
Market Performance in 2022:
In 2022, Diageo’s tequila business generated a revenue of $2,337.40 million USD, with a gross margin of $1,273.44 million USD.
7.2 Becle
Company Introduction and Business Overview:
Becle, S.A.B. de C.V., is a prominent Mexican spirits company with a rich history dating back to 1758. Known for its flagship brand, Jose Cuervo, Becle is one of the largest producers of tequila in the world. The company’s commitment to quality and tradition has made its products popular globally.
Becle’s business strategy emphasizes the production and distribution of high-quality spirits, with a focus on tequila. The company operates through a network of distilleries and bottling plants in Mexico, ensuring the authenticity and quality of its products. Becle’s global distribution network allows it to reach consumers in over 100 countries, making it a dominant player in the tequila market.
Products:
Becle’s product portfolio includes a range of tequila products, such as Jose Cuervo, which is known for its smooth and rich flavor profile. The brand offers various types of tequila, including Blanco, Reposado, and Añejo, each crafted to meet the diverse tastes of consumers. Becle’s commitment to tradition and quality has made its products a favorite among tequila enthusiasts.
Market Performance in 2022:
In 2022, Becle’s tequila business generated a revenue of $1,326.60 million USD, with a gross margin of $772.91 million USD.
7.3 Bacardi (Cazadores)
Company Introduction and Business Overview:
Bacardi Limited is a leading multinational spirits company headquartered in Hamilton, Bermuda. Established in 1862, Bacardi has a diverse portfolio of spirits, including rum, vodka, and tequila. The company’s tequila brand, Cazadores, is known for its high-quality products and authentic Mexican heritage.
Bacardi’s business strategy focuses on innovation, sustainability, and responsible drinking. The company operates through a network of distilleries and bottling plants, ensuring the quality and authenticity of its products. Bacardi’s global distribution network allows it to reach consumers in over 170 countries, making it a dominant player in the spirits market.
Products:
Bacardi’s tequila portfolio includes Cazadores, a premium tequila brand known for its smooth and authentic taste. Cazadores offers a range of products, including Blanco, Reposado, and Añejo, each crafted from 100% blue agave and aged to perfection. The brand’s commitment to quality and authenticity has made it a favorite among tequila connoisseurs.
Market Performance in 2022:
In 2022, Bacardi’s tequila business generated a revenue of $1,084.63 million USD, with a gross margin of $605.19 million USD.