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Mexico Tequila Market Share, Size, Analysis: By Product Type: Blanco, Joven, Mixto Gold, Reposado, Anejo, Extra Anejo; By Purity: 100% Tequila, 60% Tequila; By Price Range: Premium Tequila, Others; By Distribution Channels; Regional Analysis: Market Dynamics; Competitive Landscape; Industry Events and Developments; 2022-2027

Mexico Tequila Market Outlook

The Mexico tequila market size reached a value of about USD 2873.455 million in 2021. The market is expected to grow at a CAGR of 6.50% between 2022 and 2027 to attain nearly USD 4145.564 million by 2027.

 

News and Developments in the Market

In June 2022, Mexico-based Híjole! Tequila was named the Official Tequila Sponsor of Broncos Country by the Denver Broncos. Híjole! Tequila is a premium silver tequila comprised of yeast, water, and agave.

 

Under the partnership, Híjole! Tequila would be advertised in association with Broncos special events and game days, and the company would be the exclusive tequila marketing partner in all Mexico-based Broncos events. Hence, such partnerships are bolstering the Mexico tequila market development.

 

In March 2022, Padre Azul Tequila launched a new bottle size of 375ml. In Q2 2022, the company would also launch tequila in 750ml format for clubs and parties. The new 375ml format would enable consumers to share or gift the unique tequila to their friends, family, and loved ones.

 

In November 2021, Diageo announced that its Don Julio Blanco tequila was the first tequila to receive the Environmentally Responsible Agave (ARA) certification from the Government of the State of Jalisco, Mexico, and the Tequila Regulatory Council (CRT), which showcased the company’s sustainability efforts. The increasing availability of such tequilas is driving the Mexico tequila market growth.

 

In September 2021, Diageo announced an investment of more than USD 500 million in new facilities in the State of Jalisco in order to expand its tequila manufacturing footprint in Mexico. The investment was aimed at supporting the company’s plan to introduce new products and meet the growing demand for tequila in Mexico and other countries.

 

The construction of the new facility was slated to begin in 2021, which was aimed to support the company’s 10-year sustainability action plan. Such investments are significantly contributing to the Mexico tequila market development.

 

In December 2020, Mijenta, an artisanal tequila from the highlands of Jalisco, announced the launch of Reposado, which is a small batch and super-premium spirit crafted with a commitment towards environmental sustainability and the local community. The product is aged up to six months in a blend of French oak, American white oak, and French acacia casks, while it features the flavour of vanilla with a blend of bergamot, preserved fruit, honey, and a mid-palate of cacao nibs.

 

Rising Penetration of High-Quality Brands, Growing Tequila Exports, Increasing Demand for Margaritas, and Launches of Innovative Tequilas to Support the Tequila Market in Mexico

Tequila refers to a distilled beverage that is made from the blue agave plant. The typical production process of tequila is artisanal and labour intensive. Tequila can only be produced in certain areas that are appointed by the Mexican government. The moderate consumption of tequila is linked with various health benefits and is known to boost colon health, bone density, and blood sugar.

 

  • The growing penetration of high-quality brands and the surging demand for añejo and reposado tequilas are driving the market growth.
  • With the increasing demand for tequila in international markets, the export activities of tequila by Mexican manufacturers are surging.
  • Some of the major Mexico tequila market trends include the rising consumption of margaritas and the increasing development of food infused with tequila.
  • The Mexico market is being bolstered by the increasing launches of innovative tequilas by the leading companies.

 

Premiumisation of Tequila, Rising Trend of Health-Consciousness, and Growing Demand for Flavoured Tequila to Offer Lucrative Opportunities to the Mexico Market for Tequila

Premiumisation of Tequila

The growing trend of premiumisation of tequila owing to the rising demand for the beverage in international markets and the increasing availability of high-quality and affordable spirits are propelling the market growth.

 

Growing Demand for Tequila Among Health-Conscious Consumers

The moderate consumption of tequila posits several health benefits such as enhanced immune system, bone health, and digestion. Moreover, it is naturally lower in calories and sugar than other alcoholic beverages, hence boosting its demand among health-conscious consumers.

 

Versatility of Tequila

Tequila is extremely versatile, and it can be added to cocktails such as tequila sunrise and margarita.

 

Rising Demand for Flavoured Tequila

The rising demand for tequila with diverse flavours such as pineapple, coconut, and jalapeño, among others, especially among the millennial and Gen-Z population, is bolstering the market growth.

 

Mass Production of Tequila, Rising Competitiveness, and Increasing Awareness Regarding the Effects of Alcohol Consumption to Pose as Challenges in the Mexico Tequila Market

Mass Production of Tequila

With the growing demand for tequila, it is being mass-produced using low-cost ingredients, chemicals, and industrial equipment. This may impact its preference among consumers preferring clean-labelled products.

 

Increasing Penetration of Tequila Brands

The increasing number of tequila brands in Mexico due to the growing demand for the spirit is pressurising the supply of agave, which, in turn, may impact the quality of the end product.

 

Rising Awareness Regarding the Dire Effects of Alcohol Consumption

Frequent consumption of tequila may lead to several health impacts and can boost the risk of alcohol dependency, dementia, weakened immune system, cancers, anxiety, depression, heart issues, and high blood pressure, among others.

 

Mexico Tequila Market Analysis

On the basis of product type, the market can be segmented into joven, anejo, blanco, reposado, extra anejo, and mixto gold. By purity, the market is divided into 100% tequila and 60% tequila. On the basis of price range, the market can be categorised into value tequila, premium tequila, ultra-premium tequila, and premium and super-premium tequila. The market, by distribution channels, is bifurcated into off trade and on trade.

 

The major regions in the market can be divided into the Bajío, Central Mexico, Yucatan Peninsula, Northern Mexico, Pacific Coast, and Baja California.

 

The comprehensive EMR report offers an in-depth assessment of the Mexico tequila market based on the Porter's five forces model while providing a SWOT analysis. Additionally, the report gives a detailed analysis of the following key players in the market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

 

  • Diageo plc
  • The Patron Spirits Company
  • Proximo Spirits, Inc.
  • Heaven Hill Sales Co. d.b.a.
  • Charbay Distillery
  • Others

 

Joven, Blanco, Reposado, Anejo, Mixto Gold, and Extra Anejo Are the Major Product Types in the Market

Blanco tequila, variously known as silver tequila, is the purest form of tequila produced using the finest blue agave plant and a time-bound distillation process. It offers a crisp agave flavour and a hint of citrus, due to which it is witnessing an expansion in the Mexico tequila market share. Meanwhile, anejo tequila offers a sophisticated agave flavour profile, which is complemented with vanilla, cinnamon, nuts, peppery, and smoked wood flavours. Such tequilas can also be consumed neat or be incorporated in cocktails, which is augmenting the market growth.

 

Extra anejo tequila is typically aged for three years in oak barrels, due to which it has relatively high prices. This is boosting the launch of premium extra anejo tequilas by leading companies. For instance, in September 2021, Tequila Don Julio launched Tequila Don Julio Ultima Reserve, its special 36-month aged luxury Extra-Anejo.

 

Joven tequila, variously known as gold tequila, refers to a blanco tequila that is blended with aged tequilas. Meanwhile, mixto gold tequila is made from 51% blue agave sugars and 49% other sugars, including high fructose corn syrup and cane. As artificial colouring, thickeners, and flavourings are typically added to such tequilas, they are not preferred by consumers.

 

Reposado tequila showcases subtle flavours of vanilla, spice, oaks, and agave, due to which it is increasingly used in cocktails. Hence, the rising demand for tequila in international markets is favouring the Mexico tequila market growth.

 

Value Tequila, Premium Tequila, Premium and Super-Premium Tequila, and Ultra-Premium Tequila are the Major Price Ranges in the Market

Value tequilas are extensively consumed by middle-class Mexican consumers on account of their affordability. Various key players are also introducing value tequilas made with high-quality ingredients, which is also boosting their demand.

 

Premium tequila has a complex and rich flavour profile and does not contain additives, sugar, and congeners, due to which it prevents hangovers and other impacts of excessive alcohol. It is aged over a long period of time and is increasingly used as a gift, which is likely to bolster the Mexico tequila market growth.

 

Premium and super-premium tequilas are made from 100% agave plants that undergo distillation and fermentation processes. The spirits, hence, retain complex, refined, and delicate taste profiles.

 

Ultra-premium tequila typically does not contain additives and offers a refined and unique taste. Various producers are also introducing ultra-premium tequila produced using sustainable practices and through proprietary ageing and distillation processes. Such tequilas are extensively exported to North America and the Asia Pacific region, along with various other countries across the globe.

 

Off Trade to Account for a Substantial Share in the Mexico Tequila Market

The off trade segment, including supermarkets, hypermarkets, convenience stores, and liquor chains, among others, is boosting the availability and sales of tequilas. Various companies are initiating off trade campaigns such as point-of-sale displays and shelf-talkers to promote high-end tequilas. Meanwhile, the demand for tequila from on trade channels, such as restaurants and bars, is also increasing owing to the rising disposable incomes, the surging visibility of tequila cocktails in bars, and the growing preference for craft tequilas.

 

Growing Demand for 100% Pure Tequila and 60% Pure Tequila to Aid the Market Growth

100% pure tequilas can only be distilled in five Mexican states, including Jalisco, and various flavours such as tart citrus, cinnamon, banana, and spicy mix can be added to such tequilas. Meanwhile, 60% pure tequilas are typically mixed with orange juice, tomato juice, club soda, and grapefruit juice, among others.

 

Baja California and Northern Mexico to Represent Significant Share in the Mexico Tequila Market

Baja California and Northern Mexico account for a significant share of the Mexico market due to the growing consumption of the spirit in the region. With Mexico being the leading tequila producer across the globe, the product has become extensively affordable in the country. The market growth can further be associated with the rising demand for cocktails such as margaritas, which are primarily made up of tequila and are available through on-trade channels.

 

The Bajío, Central Mexico, Pacific Coast, and Yucatan Peninsula are likely to grow over the forecast period on account of the rising availability of tequilas with innovative texture and flavour profiles. The growing demand for premium, ultra-premium, and super-premium tequilas by consumers with inflating disposable incomes is expected to provide a further impetus to the market.

 

Jalisco is one of the most significant tequila-producing regions in Mexico and is home to the town named Tequila. The Mexico tequila market growth can also be attributed to the presence of various leading global distilleries in the region. As the demand for tequila in the global market is witnessing a boom, the manufacturing of tequila in the region is significantly increasing.

 

Various innovative tequilas are being developed in collaboration with prominent regional distilleries in Jalisco. For instance, in October 2020, Volcán de Mi Tierra collaborated with Jalisco's prominent Gallardo family to create and launch Volcán De Mi Tierra Reposado, its latest expression from the super-premium tequila brand. With the growing demand for ethically-sourced tequila, the sustainable cultivation of blue agave is likely to increase, thereby aiding the market in the forecast period.

 

Competitive Landscape

Diageo plc is a leading beverage alcohol company that has more than 27,000 employees. With a portfolio of above 200 brands, the company has a wide presence in 180 countries across the globe. Some of its iconic brands include Johnnie Walker, Tanqueray, Guinness, Captain Morgan, and Baileys, among others. In 2021, it attained net sales of EUR 12, 733 million.

 

The Patron Spirits Company is an ultra-premium distilled spirits manufacturer, which does not use additives in its beverages. It makes its most popular product, Patrón, at Hacienda Patrón and uses eco-friendly reverse osmosis irrigation systems. Moreover, each bottle of Patrón features a four-digit number to correspond with the producers. The product is handmade in small batches, due to which it is smooth, sweet, and easily accessible.

 

Heaven Hill Sales Co. d.b.a. is the largest family-owned, independent, and operated supplier of distilled spirits in the United States. It is also the second largest holder of the ageing Bourbon Whiskey in the world, with an inventory of 1,600,000 barrels. Henry Mckenna Single Barrel, Lunazul Tequilas, Two Fingers Tequila, Sacred Bond, and Burnett’s Vodkas are some of the significant brands of the company.

 

Proximo Spirits, Inc. is a quality spirits innovator that invents and promotes new products to meet the growing demand for innovative products amid the changing consumer trends and tastes. Some of its major brands are Jose Cuervo, Gran Coramino, Three Olives, Bushmills, TINCUP, Kraken, The Sexton, Hangar 1, Boodles, 400 Conejos, Creyente, among others.

 

Charbay Distillery is one of the leading companies in the modern American distillery movement and represents 13 generations of Master Distillers. Some of the leading products of the company include Meyer Lemon Vodka, Green Tea Vodka, Tapatio Tequila, Double Aged Rum, and Firehouse Whiskey, among others.

 

Key Highlights of the Report

REPORT FEATURES DETAILS
Base Year 2021
Historical Period 2017-2021
Forecast Period 2022-2027
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Product Type
  • Purity
  • Price Range
  • Distribution Channels
  • Region
Breakup by Product Type
  • Blanco
  • Joven
  • Mixto Gold
  • Reposado
  • Anejo
  • Extra Anejo
Breakup by Purity
  • 100% Tequila
  • 60% Tequila
Breakup by Price Range
  • Premium Tequila
  • Value Tequila
  • Premium and Super-Premium Tequila
  • Ultra-Premium Tequila
Breakup by Distribution Channels
  • Off Trade
  • On Trade
Breakup by Region
  • Baja California
  • Northern Mexico
  • The Bajío
  • Central Mexico
  • Pacific Coast
  • Yucatan Peninsula
Market Dynamics
  • SWOT
  • Porter's Five Forces
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • Diageo plc
  • The Patron Spirits Company
  • Proximo Spirits, Inc.
  • Heaven Hill Sales Co. d.b.a.
  • Charbay Distillery
  • Others

 

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.

1    Preface 
2    Report Coverage – Key Segmentation and Scope
3    Report Description

    3.1    Market Definition and Outlook
    3.2    Properties and Applications
    3.3    Market Analysis
    3.4    Key Players
4    Key Assumptions   
5    Executive Summary

    5.1    Overview
    5.2    Key Drivers
    5.3    Key Developments  
    5.4    Competitive Structure
    5.5    Key Industrial Trends
6    Market Snapshot
7    Opportunities and Challenges in the Market
8    Mexico Tequila Market Analysis

    8.1    Key Industry Highlights
    8.2    Mexico Tequila Historical Market (2017-2021) 
    8.3    Mexico Tequila Market Forecast (2022-2027)
    8.4    Mexico Tequila Market by Product Type
        8.4.1    Blanco
            8.4.1.1    Market Share
            8.4.1.2    Historical Trend (2017-2021)
            8.4.1.3    Forecast Trend (2022-2027)
        8.4.2    Joven
            8.4.2.1    Market Share
            8.4.2.2    Historical Trend (2017-2021)
            8.4.2.3    Forecast Trend (2022-2027)
        8.4.3    Mixto Gold
            8.4.3.1    Market Share
            8.4.3.2    Historical Trend (2017-2021)
            8.4.3.3    Forecast Trend (2022-2027)
        8.4.4    Reposado
            8.4.4.1    Market Share
            8.4.4.2    Historical Trend (2017-2021)
            8.4.4.3    Forecast Trend (2022-2027)
        8.4.5    Anejo
            8.4.5.1    Market Share
            8.4.5.2    Historical Trend (2017-2021)
            8.4.5.3    Forecast Trend (2022-2027)
        8.4.6    Extra Anejo
            8.4.6.1    Market Share
            8.4.6.2    Historical Trend (2017-2021)
            8.4.6.3    Forecast Trend (2022-2027)
    8.5    Mexico Tequila Market by Purity
        8.5.1    100% Tequila
            8.5.1.1    Market Share
            8.5.1.2    Historical Trend (2017-2021)
            8.5.1.3    Forecast Trend (2022-2027)
        8.5.2    60% Tequila
            8.5.2.1    Market Share
            8.5.2.2    Historical Trend (2017-2021)
            8.5.2.3    Forecast Trend (2022-2027)
    8.6    Mexico Tequila Market by Price Range
        8.6.1    Premium Tequila
            8.6.1.1    Market Share
            8.6.1.2    Historical Trend (2017-2021)
            8.6.1.3    Forecast Trend (2022-2027)
        8.6.2    Value Tequila
            8.6.2.1    Market Share
            8.6.2.2    Historical Trend (2017-2021)
            8.6.2.3    Forecast Trend (2022-2027)
        8.6.3    Premium and Super-Premium Tequila
            8.6.3.1    Market Share
            8.6.3.2    Historical Trend (2017-2021)
            8.6.3.3    Forecast Trend (2022-2027)
        8.6.4    Ultra-Premium Tequila
            8.6.4.1    Market Share
            8.6.4.2    Historical Trend (2017-2021)
            8.6.4.3    Forecast Trend (2022-2027)
    8.7    Mexico Tequila Market by Distribution Channels
        8.7.1    Off Trade
            8.7.1.1    Market Share
            8.7.1.2    Historical Trend (2017-2021)
            8.7.1.3    Forecast Trend (2022-2027)
        8.7.2    On Trade
            8.7.2.1    Market Share
            8.7.2.2    Historical Trend (2017-2021)
            8.7.2.3    Forecast Trend (2022-2027)
    8.8    Mexico Tequila Market by Region
        8.8.1    Market Share
            8.8.1.1    Baja California
            8.8.1.2    Northern Mexico
            8.8.1.3    The Bajío
            8.8.1.4    Central Mexico
            8.8.1.5    Pacific Coast
            8.8.1.6    Yucatan Peninsula
9    Regional Analysis
    9.1    Baja California
        9.1.1    Historical Trend (2017-2021)
        9.1.2    Forecast Trend (2022-2027)
    9.2    Northern Mexico
        9.2.1    Historical Trend (2017-2021)
        9.2.2    Forecast Trend (2022-2027)
    9.3    The Bajío
        9.3.1    Historical Trend (2017-2021)
        9.3.2    Forecast Trend (2022-2027)
    9.4    Central Mexico
        9.4.1    Historical Trend (2017-2021)
        9.4.2    Forecast Trend (2022-2027)
    9.5    Pacific Coast
        9.5.1    Historical Trend (2017-2021)
        9.5.2    Forecast Trend (2022-2027)
    9.6    Yucatan Peninsula
        9.6.1    Historical Trend (2017-2021)
        9.6.2    Forecast Trend (2022-2027)
10    Market Dynamics
    10.1    SWOT Analysis
        10.1.1    Strengths
        10.1.2    Weaknesses
        10.1.3    Opportunities
        10.1.4    Threats
    10.2    Porter’s Five Forces Analysis
        10.2.1    Supplier’s Power
        10.2.2    Buyer’s Power
        10.2.3    Threat of New Entrants
        10.2.4    Degree of Rivalry
        10.2.5    Threat of Substitutes
    10.3    Key Indicators for Demand
    10.4    Key Indicators for Price
11    Value Chain Analysis
12    Competitive Landscape

    12.1    Market Structure
    12.2    Company Profiles
        12.2.1    Diageo plc
            12.2.1.1    Company Overview
            12.2.1.2    Product Portfolio
            12.2.1.3    Demographic Reach and Achievements
            12.2.1.4    Certifications
        12.2.2    The Patron Spirits Company
            12.2.2.1    Company Overview
            12.2.2.2    Product Portfolio
            12.2.2.3    Demographic Reach and Achievements
            12.2.2.4    Certifications
        12.2.3    Proximo Spirits, Inc.
            12.2.3.1    Company Overview
            12.2.3.2    Product Portfolio
            12.2.3.3    Demographic Reach and Achievements
            12.2.3.4    Certifications
        12.2.4    Heaven Hill Sales Co. d.b.a.
            12.2.4.1    Company Overview
            12.2.4.2    Product Portfolio
            12.2.4.3    Demographic Reach and Achievements
            12.2.4.4    Certifications
        12.2.5    Charbay Distillery
            12.2.5.1    Company Overview
            12.2.5.2    Product Portfolio
            12.2.5.3    Demographic Reach and Achievements
            12.2.5.4    Certifications
        12.2.6    Others
13    Key Trends and Developments in the Market

 

List of Key Figures and Tables

1.    Mexico Tequila Market: Key Industry Highlights, 2017 and 2027
2.    Mexico Tequila Historical Market: Breakup by Product Type (USD Million), 2017-2021
3.    Mexico Tequila Market Forecast: Breakup by Product Type (USD Million), 2022-2027
4.    Mexico Tequila Historical Market: Breakup by Purity (USD Million), 2017-2021
5.    Mexico Tequila Market Forecast: Breakup by Purity (USD Million), 2022-2027
6.    Mexico Tequila Historical Market: Breakup by Distribution Channels (USD Million), 2017-2021
7.    Mexico Tequila Market Forecast: Breakup by Distribution Channels (USD Million), 2022-2027
8.    Mexico Tequila Historical Market: Breakup by Region (USD Million), 2017-2021
9.    Mexico Tequila Market Forecast: Breakup by Region (USD Million), 2022-2027
10.    Mexico Tequila Market Structure

Key Questions Answered in the Report

In 2021, the market attained a value of nearly USD 2873.455 million.

The major regions in the market are the Bajío, Yucatan Peninsula, Central Mexico, Pacific Coast, Northern Mexico, and Baja California.

The major product types of tequila in the market are joven, anejo, blanco, reposado, extra anejo, and mixto gold.

Mexico is the largest consumer of tequila across the globe. As tequila is the national drink of Mexico, the consumption of tequila amounts to 0.63 litres per person.

Tequila is made from the blue agave plant that is typically grown in Mexico. Mexican regions such as Michoacán, Tamaulipas, Nayarit, Guanajuato, and, Jalisco are some of the most popular tequila-producing states in the world.

The market is being aided the growing launches of innovative tequilas, the increasing demand for tequila in international markets, and the rising consumption of margaritas.

The market is likely to be supported by the rising preference for premium tequila, the growing demand for flavoured tequila, and surging tequila sales from on-trade channels.

The market is estimated to grow at a CAGR of 6.50% between 2022 and 2027.

The significant purity segments in the market include 100% tequila and 60% tequila.

The several price ranges of tequila are value tequila, premium tequila, ultra-premium tequila, and premium and super-premium tequila.

The tequila market in Mexico is estimated to reach about USD 4145.564 million by 2027.

The different distribution channels in the market are on trade and off trade.

The major players in the market are Diageo plc, The Patron Spirits Company, Proximo Spirits, Inc., Heaven Hill Sales Co. d.b.a., and Charbay Distillery, among others.

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