Some of the key players in the tequila market such as Diageo Plc (London, United Kingdom), Tequila Ocho (United States), Casa Aceves Spirits (Mexico), Pernod Ricard S.A. (Paris, France), Vault Fine Spirits Pvt. Ltd. (Mumbai, India) and others.
The global tequila market size is expected to reach USD 14.70 billion by 2028. Celebrity endorsements in alcoholic beverages will have an outstanding impact on the tequila market growth during the forecast period, states Fortune Business Insights, in a report, titled “Tequila Market, 2021 – 2028.” The market size stood at USD 9.41 billion in 2020 and registered a CAGR of 5.8% in the same year.
The drastic change in drinking patterns coupled with e-commerce popularity during the pandemic has fuelled enormous business opportunities for the alcohol beverage industry. However, the temporary shutdown of bricks-and-mortar alcohol stores due to the governments’ lockdown has thwarted the development; nonetheless, the booming e-commerce channel due to liquor’s home delivery has aided the liquor business amid the global pandemic.
Introduction of Magenta by Ana Maria Romero and Mike Dolan to Favor Tequila Business
Ana Maria Romero, a Mexico-based distiller, collaborated with former Bacardi CEO Mike Dolan to introduce a new sustainable Tequila brand, called Magenta. Magenta is inspired by the Spanish words ‘mi gente’, meaning ‘my people’. According to the brand, the words refer to a “community of like-minded people who come together to celebrate life. The brand is concentrated on “ethical behavior”. The new brand’s launch is expected to augur well for the tequila industry due to its rich flavor and taste. Magenta is portrayed as having honey, vanilla, and caramel flavors, along with tropical fruits such as peach, melon, pineapple, and soursop. “Magenta is meant to unite all kinds of people under the same flavor, whether it is for tasting, pairing with food, or tasting with friends,” said Romero. Moreover, “Each element of the journey has been crafted to celebrate the best of the land and its people – from the earth that graces us with its gifts, to our community who share their skills, to our customers who give us their trust.”
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Heavy Demand Fine Spirits to Aid Growth
The growing propensity towards high-quality and finest spirits among consumers will foster the healthy growth of the market. The shift towards sophisticated and premium alcohol beverages can create opportunities for the global market. According to the DISCUS, the strong revenue growth in the global alcoholic beverages industry was mainly attributed to the rising demand for high-end premium and super-premium spirits. Moreover, the increasing urbanization and disposable income of middle-class consumers will have a positive influence on the tequila market growth. In addition, the evolving production techniques by renowned companies will promote the expansion of the tequila industry.
Blanco to Hold the Largest Share
Based on type, the market is classified into blanco, reposado, anejo, and others. The blanco variant holds the major share owing to its earthy, semi-sweet, distinctive agave flavour. The wide utilization of blanco variants in various cocktails such as margarita and paloma backs the segment’s growth.
Based on grade, the market is divided into value, premium, high-end premium, super-premium. The premium tequila is expected to account for the largest share due to the demand for high-quality craft spirits among consumers. The high-end premium and super-premium tequilas are the fastest-growing categories due to changing consumers’ attitudes and inclination towards super-premium drinks. According to the DISCUS, between 2012-2017, the super-premium and high-end premium spirits grew 6-7% per year by volume.
Based on the distribution channel, the market is labeled into on-trade and off-trade.
The on-trade sales channel is expected to hold a significant tequila market share.
Mexico to Dominate the Market
- High production and distribution of alcohol in Mexico drives the market in North America
- The increasing popularity of artisanal spirits in the UK, France, and Germany boosts the growth in Europe.
- Brazil and Argentina experienced a surge in alcohol consumption, which is expected to contribute to Latin America’s growth.
- Asia Pacific is expected to account for a significant share due to its growing inclination towards quality spirits among consumers.
Prominent Companies to Focus on Innovative Product Launch
The key players in the market are focused on introducing innovative products with new flavors for the consumers. Moreover, emerging brands are also adopting strategies such as social media to establish a foothold in the tequila industry. For instance, in July 2019, Cranston and Paul announced the launch of their mezcal brand on social media. Dos Hombres (42% ABV) is made of espadin agave, and the piñas are cooked in earthen pits to release their sugars in order to give consumers a rich taste.
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The Report Lists the Key Companies in the Market:
- Diageo Plc (London, United Kingdom)
- Tequila Ocho (United States)
- Bacardi & Company Ltd. (Hamilton, Bermuda)
- Vault Fine Spirits Pvt. Ltd. (Mumbai, India)
- Charbay Distillery (United States)
- Tequila Fortaleza (Mexico)
- Proximo Spirits, Inc. (New Jersey, United States)
- Brown-Forman Corporation (Kentucky, United States)
- Pernod Ricard S.A. (Paris, France)
- Casa Aceves Spirits (Mexico)
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