Tequila & Mezcal Market - Forecast(2024 - 2030)

Report Code: FBR 0326 Report Format: PDF + Excel

Tequila & Mezcal Market Overview

Tequila & Mezcal Market size is projected to reach $12.1 billion by 2026, growing at a CAGR of 6.7% over 2021-2026. Tequila & Mezcal is a type of alcohol that is both obtained by a common plant, known as Agave. The plant has several varieties, each having its characteristic with different saturations of methanol, aldehydes and esters. An interesting fact is that all tequila is mezcal, while not all mezcal is tequila. It is owed to the fact that blue weber agave gives rise to Tequila, while any preparation from the agave plant is Mezcal. Tequila & Mezcal are both obtained by a rigorous process of fermentation, distillation, and aging.

Tequila & Mezcal contains a variety of ingredients which if taken in controlled amounts can help in improving digestion and increasing the probiotic levels. It is also advantageous in increasing the absorption of calcium and magnesium, which supports intestinal function.

Tequila & Mezcal market outlook looks optimistic owing to rising levels of disposable income amongst the youth, and owing to the addition of mezcal as an active ingredient in beverages and other popular cocktails and drinks on the lines of premium and super-premium drinks.

Report Coverage

The report: “Tequila & Mezcal Market (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Tequila & Mezcal Market.

By Product Type- Tequila- Blanco, Joven, Mixto Gold, Reposado, Anejo, Extra Anejo and Mezcal- Mezcal Joven, mezcal Anejo, Mezcal Reposado.
By Production Technique- Mezcal- Traditional, Artisanal and Ancestral Methods. Tequila- Industrial Method.
By Distribution Channel- Off Trade- Supermarkets and Hypermarkets, Discount Stores, Online Stores and Others. On-Trade- Restaurant and Bars, Liquor Stores and Others.
By Purity- 100% Pure Agave and Blends.
By Geography- North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, and Rest of South America), and Rest of the World (Middle East, and Africa).

Key Takeaways

  • North America dominated the tequila & mezcal market in the year 2020, owing to a surge in demand in the beverages industry. The adoption is due to new distilleries coming, providing a whole range of mezcals to chose from.
  • Increasing preference of the millennial generation for fair trade products will drive the tequila & mezcal market forward.
  • Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be Tequila & Mezcal market.
  • Companies operating in the tequila & mezcal industry will have to face stiff competition from different companies within region and across the globe as well.

Tequila & Mezcal Market Revenue- By Geography

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Tequila & Mezcal Market Analysis- By Product Type

By product type, Tequila & Mezcal market share is distributed into two subcategories, where Tequila is bifurcated into- Blanco, Joven, Mixto Gold, Reposado, Anejo, Extra Anejo and Mezcal is bifurcated into- Mezcal Joven, mezcal Anejo, Mezcal Reposado. Of them both, Mezcal Joven had the largest market share of 35.9% in the year 2020. The reason for this demand is accommodated by the fact that the following drink offers a smooth and consistent texture, by also providing a lingering heat.

The Mezcal Joven is set to grow its market size at the fastest pace in the forecast period of 2021-2026 at a CAGR of 8.8%, owing to a wide availability of flavors like white pepper, citrus and green apple which would in turn appeal to the millennial generation who has a knack for trying different cocktails and drinks.

Tequila & Mezcal Market Analysis- By Production Technique

By production technique, Tequila & Mezcal market is subdivided into four different methods, namely mezcal, ancestral, artisanal, and industrial. Demand for artisanal method dominated the market share of tequilan & mezcal in the year 2020. The reason for the surge in demand is owing to the efficiency of this production technique, as it uses the current technology of copper stills and industrial plants and the overall process has low wastage, and the sugar content remains constant throughout the batch.

The demand for artisanal is owed to grow at the fastest CAGR over the forecast period of 2021-2026. The overall process is now demanded in various regions owing to the eco-friendliness of the entire process. Deforestation doesn’t take place, neither the lands become barren after the first harvest. The entire process is dependent on the machinery, and hence the labour dependence is negligible.

Tequila & Mezcal Market - By Geography

By Geography, North America dominated the overall segment in the year 2020. The reason for the surge in demand is associated with the rise in distillery and craft drinks in the millennial population. The surge is also associated with the practice of fair trade, and the tendency of the youth to purchase beverages with organic ingredients.

North America is set to dominate the market at a fastest growing CAGR of 8.2%, during the forecast period of 2021-2026, owing to an uprising demand of mezcal in beverages and confectionaries. The demand is also set to grow owing to a natural non-alcoholic beverage being used in making cocktails, which are healthier than conventional drinks.

Tequila & Mezcal Market Drivers

Helps in Improving Digestion

The agave fruit contains natural juices and sugars, which improves the human gut microbiota, which is a community of beneficial microbes. The theory is supported owing to the presence of fructans and fructooligosacchariades, a type of prebiotic that helps in improving any digestive condition and aids in better digestion.

Reduces the risk of diabetes

The presence of sweetness in agave fruit doesn’t impact the blood sugar levels of the body because the body is not designed to absorb them. It is also reported that agave helps in improving the insulin levels within the body and assists in weight loss and reduces the chance of getting obese and developing diabetes.

Tequila & Mezcal Market Challenges

Processed Agave can cause heart disease

The presence of natural sugars in agave is often lost during the process of fermentation, and the end product contains various compounds which can negatively impact the overall body functions and give rise to chronic illness and diseases. If a regulated quantity of alcohol is not maintained chances of developing heart illnesses increases multi-fold.

Tequila & Mezcal Market Landscape

Product launches, mergers and acquisitions, joint ventures, and R&D activities are key strategies adopted by players in the Tequila & Mezcal Market. Diabetes Food Market top 10 companies include, Mezcal Vago, Pernod Richard, Rey Campero, Los Danzantas, Bacardi Limited, El Grado Tequila, Jose Cuervo, Tequila Arette, El Agave Artesanal and Dos Lunas.

Acquisitions/Product Launches:

  • In July 2020; Pernod Richard announced a merger with a premium mezcal brand Ojo de Tigre which specialises in manufacturing artisanal mezcal, crafted with an age-old tradition. The agave selected for making mezcal is tobala and espadin, which would help the companies in developing premium mezcal that can be used in both cocktails and neat.

Relevant Titles

Report Code- FBR 0064

Report Code- FBR 0220

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1. Tequila & Mezcal Market- Market Overview
    1.1 Definitions and Scope
2. Tequila & Mezcal Market- Executive Summary
    2.1 Market Revenues and Key Trends by Company
    2.2 Key Trends by Product Type
    2.3 Key Trends by Distribution Channel
    2.4 Key Trends by Production Techniques
    2.5 Key Trends by Purity
    2.6 Key Trends by Geography
3. Tequila & Mezcal Market- Comparative Analysis
    3.1 Company Benchmarking- Key Companies
    3.2 Financial Analysis- Key Companies
    3.3 Market Share Analysis- Key Companies
    3.4 Patent Analysis
    3.5 Pricing Analysis - Average Selling Price
4. Tequila & Mezcal Market- Startup Companies Scenario
    4.1 Key Startup Company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Application Analysis
        4.1.4 Venture Capital and Funding Scenario
5. Tequila & Mezcal Market- Industry Market Entry Scenario Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Case Studies of Successful Ventures
6. Tequila & Mezcal Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter Five Forces Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Power of Customers
        6.3.3 Threat of New Entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of Substitutes
7. Tequila & Mezcal Market- Strategic Analysis
    7.1 Value- Chain Analysis
    7.2 Opportunities Analysis
    7.3 Market Life Cycle
8. Tequila & Mezcal- By Product Type (Market Size- $Million/$Billion)
    8.1 Tequila
        8.1.1 Blanco
        8.1.2 Joven
        8.1.3 Mixto Gold
        8.1.4 Reposado
        8.1.5 Anejo
        8.1.6 Extra Anejo
    8.2 Mezcal
        8.2.1 Mezcal Joven
        8.2.2 Mezcal Anejo
        8.2.3 Mezcal Reposado
9. Tequila & Mezcal- By Production Technique (Market Size- $Million/$Billion)
    9.1 Mezcal
        9.1.1 Mezcal Method
        9.1.2 Artisanal Method
        9.1.3 Ancestral Method
    9.2 Tequila
        9.2.1 Industrial Method
10. Tequila & Mezcal Market- By Distribution Channel (Market Size- $Million/$Billion)
    10.1 Off- Trade
        10.1.1 Supermarkets and Hypermarkets
        10.1.2 Discount Stores
        10.1.3 Online Stores
        10.1.4 Others
    10.2 On-Trade
        10.2.1 Restaurant and Bars
        10.2.2 Liquor Stores
        10.2.3 Others
11. Tequila & Mezcal Market- By Purity (Market Size- $Million/$Billion)
    11.1 100% Pure Agave
    11.2 Blends
12. Tequila & Mezcal Market – By Geography (Market Size- $Million/$Billion)
    12.1 North America
        12.1.1 U.S.
        12.1.2 Mexico
        12.1.3 Canada
    12.2 Europe
        12.2.1 U.K.
        12.2.2 France
        12.2.3 Germany
        12.2.4 Italy
        12.2.5 Spain
        12.2.6 Russia
        12.2.7 Rest of Europe
    12.3 Asia Pacific
        12.3.1 China
        12.3.2 India
        12.3.3 Japan
        12.3.4 South Korea
        12.3.5 Australia & New Zealand
        12.3.6 Rest of Asia Pacific
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Rest of South America
    12.5 Rest of the World
        12.5.1 Middle East
        12.5.2 Africa
13. Tequila & Mezcal Market Entropy
14. Tequila & Mezcal Market- Industry/ Segment Competition Landscape Premium
    14.1 Market Share Analysis
        14.1.1 Global Market Share- Key Companies
        14.1.2 Market Share by Region- Key Companies
        14.1.3 Market Share by Country- Key Companies
        14.1.4 Competition Matrix
        14.1.5 Best Practices for Companies
15. Tequila & Mezcal Market- Key Company List by Country Premium (Premium)
16. Tequila & Mezcal Market Company Analysis
    16.1 Company Revenue, Products, M&A, Developments
    16.2 Company 1
    16.3 Company 2
    16.4 Company 3
    16.5 Company 4
    16.6 Company 5
    16.7 Company 6
    16.8 Company 7
    16.9 Company 8
    16.10 Company 9
    16.11 Company 10