DUBLIN--(BUSINESS WIRE)--The "Tequila Market By Product Type, By Grade, By Application, By Distribution Channel, and By Region Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.
The global tequila market size is expected to reach USD 14.35 billion in 2028 and register a revenue CAGR of 5.4% over the forecast period, according to the latest report.
Companies Mentioned
- Bacardi Ltd.
- Campari America LLC
- Diageo PLC
- Eastside Distilling Inc.
- Ambhar Global Spirits LLC
- Becle SAB De CV
- Constellation Brands Inc.
- Brown-Forman Corporation
- E. and J. Gallo Winery
- Tequila Ocho
The growing popularity of tequila-based cocktails is expected to be a key driver of the market growth.
The market is being driven by premiumization, with continued growth in premium and super-premium products outpacing that of lower-priced variants. The growing popularity of premium and super-premium tequila brands is another major factor driving the market growth.
The premiumization trend has been gaining popularity in the alcoholic beverages industry, especially in the tequila market. For instance, in January 2019, Casa Herradura launched its premium tequila brand, Reserva de la Familia, in the US market. The product is priced at USD 250 per bottle and is only available in limited quantities. Similarly, in November 2018, Patron Spirits International AG launched its ultra-premium tequila brand, Gran Patron Burdeos, in the US market.
Tequila is made from the blue agave plant, which is native to Mexico. Traditionally, tequila was produced in the Mexican state of Jalisco, but today it is produced in several other states as well. The vast majority of tequila exported to the United States is produced in Jalisco.
There are three main types of tequila: blanco (white or silver), reposado (aged for two months to one year), and anejo (aged for one to three years). Extra anejo is a relatively new category, introduced in 2006, for tequilas that have been aged for more than three years.
Some Key Highlights from the Report:
- The blanco tequila category is expected to grow at the highest CAGR during the forecast period. Blanco tequila is unaged and bottled immediately after distillation, or aged less than two months in stainless steel containers. Increasing preference for blanco tequila among millennial consumers is projected to fuel the growth of this segment during the forecast period.
- By grade, premium segment contributed for a significant revenue share in 2020. Increasing preference for high-quality and authentic tequila among consumers is expected to boost the demand for premium products in the market. The silver grade is anticipated to witness rapid growth on account of its smooth texture and less intense flavor, which makes it ideal for mixing cocktails. The reposado grade segment is projected to expand at a moderate pace owing to the growing preference for aged tequila among consumers.
- In terms of distribution channel, the offline segment is expected to hold a major share of the global market owing to the large presence of brick-and-mortar stores selling tequila products. The online segment is projected to witness rapid growth on account of the increasing number of e-commerce platforms and the growing preference for online shopping among consumers.
- According to the Distilled Spirits Council of the United States, tequila sales in North America have been steadily increasing since 2002. In 2016, sales reached a record high of $22.3 billion. The majority of tequila sold in North America is consumed in the United States, where it has become one of the most popular types of alcohol.
- The Asia Pacific region is expected to be the fastest-growing market for tequila during the forecast period. The region is expected to register a CAGR of 6.7% from 2021 to 2028. The growing popularity of tequila among young adults and millennials is one of the key drivers of market growth in the region. In addition, the growing disposable incomes and changing lifestyle preferences are further expected to drive the market growth in Asia Pacific.
For the purpose of this report, the publisher has segmented the tequila market based on product type, grade, application, distribution channel, and region:
Product Type Outlook (Revenue, USD Million; 2018-2028)
- Blanco
- Reposado
- Anejo
- Others
Grade Outlook (Revenue, USD Million; 2018-2028)
- Value
- Premium
- High-end Premium
- Super Premium
Application Outlook (Revenue, USD Million; 2018-2028)
- Corporate Hospitality
- Family Dinner
- Others
Distribution Channel Outlook (Revenue, USD Million; 2018-2028)
- On-trade Sales
- Off-trade Sales
Regional Outlook (Revenue, USD Million; 2018-2028)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Sweden
- BENELUX
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Rest of APAC
- Latin America
- Brazil
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Rest of MEA
For more information about this report visit https://www.researchandmarkets.com/r/higvj3
