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The Tequila Market size was valued at USD 10.45 billion in 2023. It is projected to reach USD 17.21 billion by 2032 and grow at a CAGR of 6.50% over the forecast period of 2024-2032.
Tequila is a distilled liquor that is largely produced in the region around Tequila, 65 km to the northwest of Guadalajara, and in the Jaliscan Highlands of the state of Jalisco in central-western Mexico.
The market is segmented as Reposado, Blanco, Anejo, and Others based on Type. Due to its characteristics, the Blanco sector had the biggest revenue share in the tequila market in 2022. The Blanco varieties generate the majority of the segment's revenue. For instance, Tequila Blanco production in Mexico increased from 11.91 million liters in May 2021 to over 13.9 million liters in July 2022, according to Statista. In just thirteen months, this suggests an increase of more than 2 million liters.
Blanco has the largest market share since its varieties are frequently utilized in numerous beverages, including palomas and margaritas. consumers are becoming more open-minded and eager to try new flavors, anejo and reposado varieties have been very popular in the recent past.
KEY DRIVERS
The growing interest of consumers in new and Exotic Flavours
Tequila is originally manufactured from the blue agave plant, but flavored tequilas have become popular in recent years. These tequilas have been infused with fruits, spices, or herbs, giving them a distinct and delectable flavor character. According to the Distilled Spirits Council of the US, the vendor's value of spirits will increase by 4.9% in 2022 to a record $38 billion, accounting for 43% of the beverage alcohol market compared to 42% for beer. Customers seek flavor sensations that are different from the ordinary.
RESTRAIN
Increasing trend for low or non-alcoholic beverages
Low- and no-alcohol beverages are becoming increasingly popular as customers become more health-conscious. This could lead to a drop in demand for alcoholic beverages, especially tequila. This trend may lead to a decrease in demand for conventional alcoholic beverages such as tequila.
OPPORTUNITY
Expanding market in emerging economies
Rising demand for a premium spirit
Tequila, a distilled alcoholic beverage created from the blue agave plant, has grown in popularity around the world, particularly in the luxury market. Consumers are becoming pickier in their spirits selection, preferring high-quality and premium goods. According to ISWR, premium-and-above spirits, which include cocktails and pricey sipping spirits, will have a 14% worldwide volume market share by 2024 as consumers continue to favor quality over quantity. People are more inclined to discover and appreciate the unique flavors and features given by premium tequila brands as their understanding of tequila grows.
CHALLENGES
Government regulations
Presence of counterfeit tequila
Counterfeit tequila is produced illegally or without the required authority. It is frequently manufactured with subpar ingredients and may be unsafe to consume. The reputation of authentic tequila brands can also be harmed by counterfeit tequila. This is becoming more common, and if consumers are aware of this, they may be less likely to purchase tequila. Counterfeit tequila is frequently manufactured using subpar components, such as methanol, which is toxic to the body. Consumers who consume fake tequila may suffer from health issues such as blindness, seizures, or even death.
IMPACT OF RUSSIA UKRAINE WAR
Russia Ukraine war has impacted the tequila market. Russia is a large tequila market, as well as a consumer and supplier of tequila. The war has reduced demand for tequila in Russia. The economic sanctions imposed on Russia have made purchasing tequila more difficult and expensive for Russian customers. Tequila shipments to Russia declined by 26% in the first quarter of 2022, according to the Tequila Regulatory Council (CRT). This has resulted in a rise in tequila prices, which has indirectly resulted in a decline in tequila sales.
IMPACT OF ONGOING RECESSION
During the recession, prices of tequila rose due to disruption in the supply chain. A recession might reduce demand for tequila because customers have less discretionary income to spend on luxury things. This is especially true for premium tequilas; which consumers are more likely to purchase during periods of economic boom. According to the IWSR Drinks Market Analysis, the worldwide tequila market is predicted to increase by 3.5% in 2023, but this growth will drop to 2.5% in 2024.
By Type
Blanco
Reposado
Anejo
Others
By Grade
Value
Premium
High-end Premium
Super Premium
By Distribution Channel
Off-Trade
On-Trade
REGIONAL ANALYSIS
North America has the largest share of the tequila market around 45.32% in 2023. In recent years, tequila has become increasingly well-liked in the United States. More than 29 million 9-liter bottles of tequila were sold in the American market in 2022, an 11.5% rise over the year before. According to the International Wine and Spirits Research (IWSR), tequila is the beverage category that is expanding the quickest in the area. This growth may also be attributable to trends toward premiumization and the region's expanding Hispanic population.
Europe has a growth at a CAGR of 4.43% market for tequila in the forecasting period. This is due to the rising popularity of artisanal spirits in countries like The United Kingdom, Germany, Spain, and France are the leading markets for tequila in Europe. The growth of the tequila market in Europe is being driven by the increasing popularity of Mexican cuisine and culture, and the growing awareness of tequila among consumers.
In the Asia Pacific spirits have gained recognition among consumers, especially in China, India, and Japan are the leading markets for tequila in Asia Pacific. The growth of the tequila market in Asia Pacific is being driven by the increasing disposable income of consumers and the growing popularity of tequila cocktails among young people.
REGIONAL COVERAGE
North America
US
Canada
Mexico
Europe
Eastern Europe
Poland
Romania
Hungary
Turkey
Rest of Eastern Europe
Western Europe
Germany
France
UK
Italy
Spain
Netherlands
Switzerland
Austria
Rest of Western Europe
Asia Pacific
China
India
Japan
South Korea
Vietnam
Singapore
Australia
Rest of Asia Pacific
Middle East & Africa
Middle East
UAE
Egypt
Saudi Arabia
Qatar
Rest of Middle East
Africa
Nigeria
South Africa
Rest of Africa
Latin America
Brazil
Argentina
Colombia
Rest of Latin America
KEY PLAYERS
Bacardi and Company Ltd, Diageo PLC, Pernod Ricard, Constellation Brands, Inc, Suntory Holdings Limited, Brown-Forman Corporation, Proximo, Ambhar Global Spirits, LLC, Eastside Distilling, California Tequila Inc, Becel, and other key players are mentioned in the final report.
In 2023, Pernod Ricard is expanding its wine portfolio due to rising demand and bringing its international tequila brands to India
In 2023, La Caza Tequila announced that, just three months after its initial introduction, it has moved into its third market and is now available throughout the state of Ohio. La Caza Tequila is pleased to announce the opening of a new office in Cleveland as part of this development.
In 2022, Tres Generaciones, a brand of tequila owned by Suntory Holdings Limited, debuted aejo Cristalino, a new ultra-premium product.
| Report Attributes | Details |
| Market Size in 2023 | US$ 10.45 Billion |
| Market Size by 2032 | US$ 17.21 Billion |
| CAGR | CAGR of 6.50% From 2024 to 2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2020-2022 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Type (Blanco, Reposado, Anejo, and Others) • By Grade (Value, Premium, High-end Premium, and Super Premium) • By Distribution Channel (Off-Trade and On-Trade) |
| Regional Analysis/Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America) |
| Company Profiles | Bacardi and Company Ltd, Diageo PLC, Pernod Ricard, Constellation Brands, Inc, Suntory Holdings Limited, Brown-Forman Corporation, Proximo, Ambhar Global Spirits, LLC, Eastside Distilling, California Tequila Inc, Becel |
| Key Drivers | • The growing interest of consumers in new and Exotic Flavours |
| Market Opportunity | • Expanding market in emerging economies • Rising demand for a premium spirit |
Ans: Tequila Market is anticipated to expand by 6.50 % from 2024 to 2032.
Ans: USD 17.21 billion is expected to grow by 2032.
Ans: Opportunities are expanding the market in emerging economies and rising demand for a premium spirit
Ans: Challenges are Government regulations and the presence of counterfeit tequila
Ans: Tequila Market size was valued at USD 10.45 billion in 2023.
Table of Contents
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Research Methodology
3. Market Dynamics
3.1 Drivers
3.2 Restraints
3.3 Opportunities
3.4 Challenges
4. Impact Analysis
4.1 Impact of the Ukraine- Russia war
4.2 Impact of ongoing Recession
4.2.1 Introduction
4.2.2 Impact on major economies
4.2.2.1 US
4.2.2.2 Canada
4.2.2.3 Germany
4.2.2.4 France
4.2.2.5 United Kingdom
4.2.2.6 China
4.2.2.7 Japan
4.2.2.8 South Korea
4.2.2.9 Rest of the World
5. Value Chain Analysis
6. Porter’s 5 forces model
7. PEST Analysis
8. Tequila Market Segmentation, By Type
8.1 Blanco
8.2 Reposado
8.3 Anejo
8.4 Others
9. Tequila Market Segmentation, By Grade
9.1 Value
9.2 Premium
9.3 High-end Premium
9.4 Super Premium
10. Tequila Market Segmentation, By Distribution Channel
10.1 Off-Trade
10.2 On-Trade
11. Regional Analysis
11.1 Introduction
11.2 North America
11.2.1 North America Tequila Market by Country
11.2.2 North America Tequila Market by Type
11.2.3 North America Tequila Market by Grade
11.2.4 North America Tequila Market by Distribution Channel
11.2.5 USA
11.2.5.1 USA Tequila Market by Type
11.2.5.2 USA Tequila Market by Grade
11.2.5.3 USA Tequila Market by Distribution Channel
11.2.6 Canada
11.2.6.1 Canada Tequila Market by Type
11.2.6.2 Canada Tequila Market by Grade
11.2.6.3 Canada Tequila Market by Distribution Channel
11.2.7 Mexico
11.2.7.1 Mexico Tequila Market by Type
11.2.7.2 Mexico Tequila Market by Grade
11.2.7.3 Mexico Tequila Market by Distribution Channel
11.3 Europe
11.3.1 Eastern Europe
11.3.1.1 Eastern Europe Tequila Market by Country
11.3.1.2 Eastern Europe Tequila Market by Type
11.3.1.3 Eastern Europe Tequila Market by Grade
11.3.1.4 Eastern Europe Tequila Market by Distribution Channel
11.3.1.5 Poland
11.3.1.5.1 Poland Tequila Market by Type
11.3.1.5.2 Poland Tequila Market by Grade
11.3.1.5.3 Poland Tequila Market by Distribution Channel
11.3.1.6 Romania
11.3.1.6.1 Romania Tequila Market by Type
11.3.1.6.2 Romania Tequila Market by Grade
11.3.1.6.4 Romania Tequila Market by Distribution Channel
11.3.1.7 Turkey
11.3.1.7.1 Turkey Tequila Market by Type
11.3.1.7.2 Turkey Tequila Market by Grade
11.3.1.7.3 Turkey Tequila Market by Distribution Channel
11.3.1.8 Rest of Eastern Europe
11.3.1.8.1 Rest of Eastern Europe Tequila Market by Type
11.3.1.8.2 Rest of Eastern Europe Tequila Market by Grade
11.3.1.8.3 Rest of Eastern Europe Tequila Market by Distribution Channel
11.3.2 Western Europe
11.3.2.1 Western Europe Tequila Market by Type
11.3.2.2 Western Europe Tequila Market by Grade
11.3.2.3 Western Europe Tequila Market by Distribution Channel
11.3.2.4 Germany
11.3.2.4.1 Germany Tequila Market by Type
11.3.2.4.2 Germany Tequila Market by Grade
11.3.2.4.3 Germany Tequila Market by Distribution Channel
11.3.2.5 France
11.3.2.5.1 France Tequila Market by Type
11.3.2.5.2 France Tequila Market by Grade
11.3.2.5.3 France Tequila Market by Distribution Channel
11.3.2.6 UK
11.3.2.6.1 UK Tequila Market by Type
11.3.2.6.2 UK Tequila Market by Grade
11.3.2.6.3 UK Tequila Market by Distribution Channel
11.3.2.7 Italy
11.3.2.7.1 Italy Tequila Market by Type
11.3.2.7.2 Italy Tequila Market by Grade
11.3.2.7.3 Italy Tequila Market by Distribution Channel
11.3.2.8 Spain
11.3.2.8.1 Spain Tequila Market by Type
11.3.2.8.2 Spain Tequila Market by Grade
11.3.2.8.3 Spain Tequila Market by Distribution Channel
11.3.2.9 Netherlands
11.3.2.9.1 Netherlands Tequila Market by Type
11.3.2.9.2 Netherlands Tequila Market by Grade
11.3.2.9.3 Netherlands Tequila Market by Distribution Channel
11.3.2.10 Switzerland
11.3.2.10.1 Switzerland Tequila Market by Type
11.3.2.10.2 Switzerland Tequila Market by Grade
11.3.2.10.3 Switzerland Tequila Market by Distribution Channel
11.3.2.11.1 Austria
11.3.2.11.2 Austria Tequila Market by Type
11.3.2.11.3 Austria Tequila Market by Grade
11.3.2.11.4 Austria Tequila Market by Distribution Channel
11.3.2.12 Rest of Western Europe
11.3.2.12.1 Rest of Western Europe Tequila Market by Type
11.3.2.12.2 Rest of Western Europe Tequila Market by Grade
11.3.2.12.3 Rest of Western Europe Tequila Market by Distribution Channel
11.4 Asia-Pacific
11.4.1 Asia-Pacific Tequila Market by Country
11.4.2 Asia-Pacific Tequila Market by Type
11.4.3 Asia-Pacific Tequila Market by Grade
11.4.4 Asia-Pacific Tequila Market by Distribution Channel
11.4.5 China
11.4.5.1 China Tequila Market by Type
11.4.5.2 China Tequila Market by Distribution Channel
11.4.5.3 China Tequila Market by Grade
11.4.6 India
11.4.6.1 India Tequila Market by Type
11.4.6.2 India Tequila Market by Grade
11.4.6.3 India Tequila Market by Distribution Channel
11.4.7 Japan
11.4.7.1 Japan Tequila Market by Type
11.4.7.2 Japan Tequila Market by Grade
11.4.7.3 Japan Tequila Market by Distribution Channel
11.4.8 South Korea
11.4.8.1 South Korea Tequila Market by Type
11.4.8.2 South Korea Tequila Market by Grade
11.4.8.3 South Korea Tequila Market by Distribution Channel
11.4.9 Vietnam
11.4.9.1 Vietnam Tequila Market by Type
11.4.9.2 Vietnam Tequila Market by Grade
11.4.9.3 Vietnam Tequila Market by Distribution Channel
11.4.10 Singapore
11.4.10.1 Singapore Tequila Market by Type
11.4.10.2 Singapore Tequila Market by Grade
11.4.10.3 Singapore Tequila Market by Distribution Channel
11.4.11 Australia
11.4.11.1 Australia Tequila Market by Type
11.4.11.2 Australia Tequila Market by Grade
11.4.11.3 Australia Tequila Market by Distribution Channel
11.4.12 Rest of Asia-Pacific
11.4.12.1 Rest of Asia-Pacific Tequila Market by Type
11.4.12.2 Rest of Asia-Pacific Tequila Market by Grade
11.4.12.3 Rest of Asia-Pacific Tequila Market by Distribution Channel
11.5 Middle East & Africa
11.5.1 Middle East
11.5.1.1 Middle East Tequila Market by Country
11.5.1.2 Middle East Tequila Market by Type
11.5.1.3 Middle East Tequila Market by Grade
11.5.1.4 Middle East Tequila Market by Distribution Channel
11.5.1.5 UAE
11.5.1.5.1 UAE Tequila Market by Type
11.5.1.5.2 UAE Tequila Market by Grade
11.5.1.5.3 UAE Tequila Market by Distribution Channel
11.5.1.6 Egypt
11.5.1.6.1 Egypt Tequila Market by Type
11.5.1.6.2 Egypt Tequila Market by Grade
11.5.1.6.3 Egypt Tequila Market by Distribution Channel
11.5.1.7 Saudi Arabia
11.5.1.7.1 Saudi Arabia Tequila Market by Type
11.5.1.7.2 Saudi Arabia Tequila Market by Grade
11.5.1.7.3 Saudi Arabia Tequila Market by Distribution Channel
11.5.1.8 Qatar
11.5.1.8.1 Qatar Tequila Market by Type
11.5.1.8.2 Qatar Tequila Market by Grade
11.5.1.8.3 Qatar Tequila Market by Distribution Channel
11.5.1.9 Rest of Middle East
11.5.1.9.1 Rest of Middle East Tequila Market by Type
11.5.1.9.2 Rest of Middle East Tequila Market by Grade
11.5.1.9.3 Rest of Middle East Tequila Market by Distribution Channel
11.5.2 Africa
11.5.2.1 Africa Tequila Market by Country
11.5.2.2 Africa Tequila Market by Type
11.5.2.3 Africa Tequila Market by Grade
11.5.2.4 Africa Tequila Market by Distribution Channel
11.5.2.5 Nigeria
11.5.2.5.1 Nigeria Tequila Market by Type
11.5.2.5.2 Nigeria Tequila Market by Grade
11.5.2.5.3 Nigeria Tequila Market by Distribution Channel
11.5.2.6 South Africa
11.5.2.6.1 South Africa Tequila Market by Type
11.5.2.6.2 South Africa Tequila Market by Grade
11.5.2.6.3 South Africa Tequila Market by Distribution Channel
11.5.2.7 Rest of Africa
11.5.2.7.1 Rest of Africa Tequila Market by Type
11.5.2.7.2 Rest of Africa Tequila Market by Grade
11.5.2.7.3 Rest of Africa Tequila Market by Distribution Channel
11.6 Latin America
11.6.1 Latin America Tequila Market by Country
11.6.2 Latin America Tequila Market by Type
11.6.3 Latin America Tequila Market by Grade
11.6.4 Latin America Tequila Market by Distribution Channel
11.6.5 Brazil
11.6.5.1 Brazil Tequila Market by Type
11.6.5.2 Brazil Tequila Market by Grade
11.6.5.3 Brazil Tequila Market by Distribution Channel
11.6.6 Argentina
11.6.6.1 Argentina Tequila Market by Type
11.6.6.2 Argentina Tequila Market by Grade
11.6.6.3 Argentina Tequila Market by Distribution Channel
11.6.7 Colombia
11.6.7.1 Colombia Tequila Market by Type
11.6.7.2 Colombia Tequila Market by Grade
11.6.7.3 Colombia Tequila Market by Distribution Channel
11.6.8 Rest of Latin America
11.6.8.1 Rest of Latin America Tequila Market by Type
11.6.8.2 Rest of Latin America Tequila Market by Grade
11.6.8.3 Rest of Latin America Tequila Market by Distribution Channel
12.Company profile
12.1 Bacardi and Company Ltd
12.1.1 Company Overview
12.1.2 Financial
12.1.3 Products/ Services Offered
12.1.4 SWOT Analysis
12.1.5 The SNS View
12.2 Pernod Ricard
12.2.1 Company Overview
12.2.2 Financials
12.2.3 Product/Services Offered
12.2.4 SWOT Analysis
12.2.5 The SNS View
12.3 Diageo PLC
12.3.1 Company Overview
12.3.2 Financials
12.3.3 Product/Services Offered
12.3.4 SWOT Analysis
12.3.5 The SNS View
12.4 Constellation Brands Inc.
12.4.1 Company Overview
12.4.2 Financials
12.4.3 Product/Services Offered
12.4.4 SWOT Analysis
12.4.5 The SNS View
12.5 Brown-Forman Corporation
12.5.1 Company Overview
12.5.2 Financials
12.5.3 Product/Services Offered
12.5.4 SWOT Analysis
12.5.5 The SNS View
12.6 Suntory Holdings Limited
12.6.1 Company Overview
12.6.2 Financials
12.6.3 Product/Services Offered
12.6.4 SWOT Analysis
12.6.5 The SNS View
12.7 Ambhar Global Spirits, LLC
12.7.1 Company Overview
12.7.2 Financials
12.7.3 Product/Services Offered
12.7.4 SWOT Analysis
12.7.5 The SNS View
12.8 California Tequila Inc
12.8.1 Company Overview
12.8.2 Financials
12.8.3 Product/Services Offered
12.8.4 SWOT Analysis
12.8.5 The SNS View
12.9 Proximo
12.9.1 Company Overview
12.9.2 Financials
12.9.3 Product/Services Offered
12.9.4 SWOT Analysis
12.9.5 The SNS View
12.10 Eastside Distilling
12.10.1 Company Overview
12.10.2 Financials
12.10.3 Product/Services Offered
12.10.4 SWOT Analysis
12.10.5 The SNS View
12.11 Becel
12.11.1 Company Overview
12.11.2 Financials
12.11.3 Product/Services Offered
12.11.4 SWOT Analysis
12.11.5 The SNS View
13. Competitive Landscape
13.1 Competitive Benchmarking
13.2 Market Share Analysis
13.3 Recent Developments
13.3.1 Industry News
13.3.2 Company News
13.3.3 Mergers & Acquisitions
14. Use Case and Best Practices
15. Conclusion
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