Date : June 15, 2023
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Global Tequila Market shows robust growth with expanding premium segment. - Bonafide Research

Global Tequila Market shows robust growth with expanding premium segment.  - Bonafide Research
The global tequila market is experiencing robust growth and witnessing a significant expansion of the premium segment, driven by evolving consumer preferences and increasing demand for high-quality spirits. Tequila, the iconic Mexican spirit, has captured the attention of enthusiasts worldwide and is gaining popularity beyond its traditional borders.

The tequila market has witnessed remarkable growth in recent years, with consumers embracing its diverse flavor profiles, craftsmanship, and versatility. This trend is particularly evident in North America, where tequila has become a favorite choice for cocktail enthusiasts. One of the prominent trends in the tequila market is the growing demand for premium tequilas. Consumers are increasingly seeking unique and sophisticated experiences, fueling the premiumization of tequila. Craft and artisanal tequilas, known for their traditional production methods and exquisite flavors, have gained substantial traction among discerning consumers who appreciate the craftsmanship behind the spirit. Blanco is the most economical tequila and has garnered attention of drinkers. While the premium and super premium tequila is being tried and tested by the gen Z for giving themselves an adventurous feel.

The cocktail culture, which continues to flourish worldwide, has also contributed to the rise of tequila's popularity. Classic tequila-based cocktails like Margaritas, Palomas, and Tequila Sunrises have become staples in bars and restaurants globally. The creativity of mixologists in developing innovative tequila-based concoctions has further propelled the spirit's appeal. Moreover, efforts to educate consumers about tequila have played a vital role in expanding its market reach. Tastings, masterclasses, and brand activations have provided consumers with a deeper understanding of tequila's production processes, types, and flavor profiles. These initiatives have contributed to an enhanced appreciation and demand for tequila among enthusiasts.

According to the research report "Global Tequila Market Outlook, 2028," published by Bonafide Research, the market is anticipated to cross USD 20 billion in size, increasing from USD 14.40 billion in 2022. The market is expected to grow at a 6.10% CAGR by 2023–28. The tequila industry is booming, and new brands are hitting shelves each day. Almost every cocktail bar worth its salt (pun intended) has a tequila cocktail on the menu, and celebrities are bringing unprecedented attention to the category by launching their own brands. As the global tequila market continues to evolve, it presents new opportunities for producers and brands to innovate and cater to the discerning tastes of consumers. The market's growth potential lies in expanding awareness, developing premium offerings, and fostering collaborations between producers, mixologists, and the hospitality industry.

Blanco tequila's popularity can be attributed to its versatility and ability to showcase the agave flavors prominently. It is often favored by those who appreciate the pure and unadulterated expression of tequila. Additionally, blanco tequila serves as a base for many other tequila variants and is an essential ingredient in the production of aged tequilas such as reposado and aejo. While blanco tequila may have a widespread consumer base, reposado and aejo tequilas, which are aged for longer periods, have also gained significant popularity and market share in recent years. These aged tequila variants offer more complex flavors and additional layers of depth and are often enjoyed for sipping and savoring.

While the North American market remains the largest consumer of tequila, with Mexico and the United States leading the way, other regions are experiencing significant growth. Europe, including the United Kingdom, Germany, and Spain, has witnessed a surge in tequila consumption, driven by an increasing preference for premium spirits and a vibrant cocktail culture. Australia, in particular, has seen a growing interest in tequila, with consumers exploring the wide range of flavors and offerings. The cultural ties between Mexico and the United States, coupled with the large population of Mexican Americans and their affinity for tequila, contribute to the region's strong market presence. North America serves as a hub for tequila imports and exports. Mexico exports a substantial amount of tequila to the United States and Canada, where it is distributed and consumed widely. Tequila has experienced significant growth in popularity in Canada, driven by factors such as changing consumer preferences, premiumization, cocktail culture, increased awareness, and the influence of multiculturalism. Tequila has traditionally had lower demand in the Asia-Pacific region compared to other parts of the world, with a few exceptions, such as Australia. Brazilians have been influenced by Mexican tequila, and is an important market for the alcohol in South America. Middle East & Africa has a negligible revenue share due to lack of availability and awareness among drinkers. Also, the cultural barriersof Middle east may further intake of tequila.

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Global Tequila Market shows robust growth with expanding premium segment. - Bonafide Research

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