Who are the key players in Tequila Market?

Bacardi and Company Ltd.,, Diageo PLC, Pernod Ricard, Constellation Brands, Inc. and Suntory Holdings Limited are the major companies operating in the Tequila Market. Read More

Which is the fastest growing region in Tequila Market?

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029). Read More

Which region has the biggest share in Tequila Market?

In 2024, the North America accounts for the largest market share in Tequila Market. Read More

What years does this Tequila Market cover, and what was the market size in 2023?

In 2023, the Tequila Market size was estimated at 432.86 million liters. The report covers the Tequila Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Tequila Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

What are key sustainability challenges in the Tequila Industry?

The key sustainability challenges in the Tequila Industry are a) Dependence on specific agave variety can make the industry vulnerable to price fluctuations and supply chain disruptions b) Agave cultivation can lead to deforestation and soil erosion if not managed sustainably Read More

Tequila Market Size

Market Size of Tequila Industry

Study Period	2019 - 2029
Base Year For Estimation	2023
CAGR (2024 - 2029)	5.48 %
Fastest Growing Market	Asia-Pacific
Largest Market	North America
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order

Tequila Market Analysis

The Tequila Market size is estimated at 457.96 Million liters in 2024, and is expected to reach 597.97 Million liters by 2029, growing at a CAGR of 5.48% during the forecast period (2024-2029).

During the initial months of the Covid-19 lockdown, the leading market players witnessed a slight decline in their spirits sales due to the reduction in travel retail which recovered gradually after the partial re-opening of the on-trade channels. However, during the COVID19 pandemic, people significantly changed their drinking habits and shifted places of consumption from bars and restaurants to home. The in-house consumption has increased drastically during the pandemic. The COVID-19 outbreak has caused a decline in the growth of the global industries creating a mass disruption for buyers as well as sellers. This has also offered an opportunity for the companies to look after their supply chain relationship and business models for the future. The COVID-19 pandemic has created a positive impact on in-house alcohol consumption, due to the shutdown of liquor stores and retail stores. This has declined the sales of the retail liquor market and shifted the consumer focus toward online platforms and in-house consumption. Therefore, the post-COVID-19 scenario is anticipated profitable for online liquor stores.

In the medium term, the growing popularity of various artisanal spirits among worldwide consumers is expected to drive demand for blue agave plant-based distilled spirits. Consumers nowadays all over the world have more sophisticated palates and they are constantly looking to explore unique, high-quality, fresh, and delicious exotic alcoholic beverages with a distinct flavor which is aiding in propelling the market growth.

Moreover, owing to the trend of premiumization, consumers are inclining toward quality over quantity in recent years. As consumers shift toward sophistication, it triggers the demand for premium quality beverages. For instance, according to the statistics released by The American Beverage Association (ABA), the premium and super-premium spirits demand is anticipated to grow exponentially worldwide, with a forecasted volume market share of around 12% by 2023.

Tequila Industry Segmentation

Tequila is a distilled alcoholic beverage produced from the Agave Tequilana plant. It is fermented with additional sweeteners, such as glucose and fructose, and artificial additives for flavorings. The global tequila market is segmented by type, distribution channel, and geography. By type, the market is segmented into blanco, reposado, anejo, and others. By distribution channel, the market is segmented into off-trade and on-trade. By off-trade, the market is further segmented into supermarkets/hypermarkets, specialist stores, online stores, and other off-trade channels. It provides an analysis of emerging and established economies across the world, comprising North America, Europe, South America, Asia-Pacific, and Middle-East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Type
		Blanco
		Reposado
		Anejo
		Other Types

By Distibution Channel

Off-Trade
	Supermarkets/Hypermarkets
	Specialist stores
	Online Stores
	Other Distribution Channels

On-Trade

By Geography

North America
	United States
	Canada
	Mexico
	Rest of North America

Europe
	United Kingdom
	Germany
	Spain
	France
	Italy
	Russia
	Rest of Europe

Asia-Pacific
	China
	Japan
	India
	Australia
	Rest of Asia-Pacific

South America
	Brazil
	Argentina
	Rest of South America

Middle East & Africa
	Saudi Arabia
	South Africa
	Rest of Middle East & Africa

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Tequila Market Size Summary

The tequila market is poised for significant growth over the forecast period, driven by evolving consumer preferences and market dynamics. The shift in consumption patterns during the COVID-19 pandemic, with a move from bars and restaurants to home consumption, has led to a surge in in-house drinking, benefiting online liquor sales. This change has prompted companies to reassess their supply chain relationships and business models, positioning them for future opportunities. The trend of premiumization is also influencing the market, as consumers increasingly prioritize quality over quantity, seeking high-end, artisanal spirits. This shift is particularly evident among millennials with higher incomes, who are driving demand for premium tequila and cocktails in both developed and developing markets.

Geographically, the United States has emerged as a key market for tequila, with its proximity to Mexico and a significant Hispanic population contributing to its popularity. The tequila market in the U.S. has seen substantial growth, with agave-based spirits experiencing a notable increase in sales. The market is moderately consolidated, with major players like Bacardi, Diageo, Pernod Ricard, Constellation Brands, and Suntory Holdings focusing on product innovation and expanding their distribution capabilities. These companies are also enhancing their online presence through strategic partnerships with e-commerce platforms to capture a broader consumer base. Recent product launches, such as Avi√≥n's Reserva Cristalino and Tres Generaciones' A√±ejo Cristalino, highlight the ongoing innovation within the market, catering to the growing demand for premium offerings.

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Tequila Market Size - Table of Contents

1. MARKET DYNAMICS
1. 1.1 Market Drivers
2. 1.2 Market Restraints
3. 1.3 Porter's Five Force Analysis
  1. 1.3.1 Threat of New Entrants
  2. 1.3.2 Bargaining Power of Buyers/Consumers
  3. 1.3.3 Bargaining Power of Suppliers
  4. 1.3.4 Threat of Substitute Products
  5. 1.3.5 Intensity of Competitive Rivalry
2. MARKET SEGMENTATION
1. 2.1 By Type
  1. 2.1.1 Blanco
  2. 2.1.2 Reposado
  3. 2.1.3 Anejo
  4. 2.1.4 Other Types
2. 2.2 By Distibution Channel
  1. 2.2.1 Off-Trade
    1. 2.2.1.1 Supermarkets/Hypermarkets
    2. 2.2.1.2 Specialist stores
    3. 2.2.1.3 Online Stores
    4. 2.2.1.4 Other Distribution Channels
  2. 2.2.2 On-Trade
3. 2.3 By Geography
  1. 2.3.1 North America
    1. 2.3.1.1 United States
    2. 2.3.1.2 Canada
    3. 2.3.1.3 Mexico
    4. 2.3.1.4 Rest of North America
  2. 2.3.2 Europe
    1. 2.3.2.1 United Kingdom
    2. 2.3.2.2 Germany
    3. 2.3.2.3 Spain
    4. 2.3.2.4 France
    5. 2.3.2.5 Italy
    6. 2.3.2.6 Russia
    7. 2.3.2.7 Rest of Europe
  3. 2.3.3 Asia-Pacific
    1. 2.3.3.1 China
    2. 2.3.3.2 Japan
    3. 2.3.3.3 India
    4. 2.3.3.4 Australia
    5. 2.3.3.5 Rest of Asia-Pacific
  4. 2.3.4 South America
    1. 2.3.4.1 Brazil
    2. 2.3.4.2 Argentina
    3. 2.3.4.3 Rest of South America
  5. 2.3.5 Middle East & Africa
    1. 2.3.5.1 Saudi Arabia
    2. 2.3.5.2 South Africa
    3. 2.3.5.3 Rest of Middle East & Africa