North America Tequila Market Outlook, 2028

The specialty of North America in the Tequila market is that it is the birthplace and primary production region of Tequila. Tequila is a distilled alcoholic beverage made primarily from the blue agave plant, which is native to Mexico. While Mexico is the main producer of Tequila, North America, specifically the Mexican states of Jalisco, Guanajuato, Michoacán, Nayarit, and Tamaulipas, is where the majority of Tequila production takes place. Additionally, tequila has gained recognition as a versatile spirit that can be enjoyed neat, on the rocks, or in a wide range of cocktails. In recent years, there has been an emergence of craft distilleries producing small-batch and artisanal tequilas. These producers focus on traditional production methods and often source their agave from specific regions, highlighting the terroir of the tequila. This trend has contributed to the diversification of the tequila market and provided consumers with a wider selection of unique and high-quality offerings. The tequila market in North America, particularly the United States, is significant and has been experiencing consistent growth. Tequila has become increasingly popular among consumers, with rising demand for premium and artisanal expressions. This growth has attracted both established tequila brands and smaller craft producers, leading to a diverse and competitive market. The North American tequila market has witnessed a strong trend towards premiumization. Consumers are increasingly interested in high-quality and aged tequilas, valuing craftsmanship and unique flavor profiles. This has led to a proliferation of premium and ultra-premium tequila offerings in the market, catering to the discerning tastes of consumers seeking a more refined and sophisticated drinking experience. According to the research report, “North America Tequila Market Outlook, 2028” published by Bonafide Research, The North America Tequila market was valued at USD 12.71 Billion market size in 2022, Both the Mexican government and regulatory bodies in North America have established regulations and certifications to protect the authenticity and quality of Tequila. In Mexico, the Tequila Regulatory Council (CRT) oversees the production, labeling, and certification of Tequila. It ensures that Tequila is made according to specific standards and that it is produced in designated regions. Similarly, in the United States, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates the importation, labeling, and distribution of Tequila to ensure compliance with legal requirements. Trade shows and expos dedicated to the spirits industry, including Tequila, are held in North America. These events bring together Tequila producers, distributors, retailers, and industry professionals. They offer a platform for networking, showcasing new products, and discussing industry trends and developments. Governments at the federal, state, and local levels in North America often engage in initiatives to support and promote their local Tequila industries. This can include financial incentives, marketing campaigns, and educational programs aimed at boosting Tequila production, tourism, and exportation. These efforts contribute to the growth and visibility of the Tequila market. In the North American Tequila market, you can find various types of Tequila, including Blanco, Reposado, Añejo, Extra Añejo. In addition to the main types mentioned above, there are also find specialty Tequila variations in the North American market. These can include flavored Tequilas (infused with fruits or spices), Cristalino Tequila (aged Tequila that undergoes filtration to remove the color while retaining the aged character), and limited edition or ultra-premium Tequilas that boast unique aging techniques or production methods.

The most consumed tequila in North American tequila market is Blanco, also known as silver or white tequila, is typically unaged or aged for a short period (up to two months) in stainless steel or neutral oak barrels. It is known for its clear color and vibrant, agave-forward flavor profile. Blanco tequilas are versatile and often used in cocktails or enjoyed neat. They appeal to consumers who prefer the purest expression of agave flavors and a fresher, more vibrant taste. Popular brands of blanco tequila in the North American market include Patrón Silver, Don Julio Blanco, Herradura Silver, Casamigos Blanco, Sauza Blue Silver. The North American Tequila market can be categorized into different grades based on the quality and price range of the Tequila products. Value Tequila refers to Tequilas that are generally more affordable and positioned as entry-level options. These Tequilas are often produced using a mix of agave sugars and may have a shorter aging period or be unaged. While they may lack the complexity and refinement of higher-grade Tequilas, value Tequilas can still provide enjoyable flavors and are suitable for use in cocktails or mixed drinks. Premium Tequila represents a step up in quality and price from value Tequilas. These Tequilas are typically made from 100% blue agave and undergo a more stringent production process. Premium Tequilas often have a smoother taste profile and more distinct agave flavors. They may be aged for a short period, typically up to one year, to enhance their complexity and character. These Tequilas are often sipped neat or used in high-quality cocktails. High-End Premium Tequila represents a higher tier of quality and craftsmanship. These Tequilas are made from 100% blue agave and are typically aged for a longer duration, usually between one to three years. The extended aging process adds depth and sophistication to the flavors, resulting in a more refined and complex drinking experience. High-End Premium Tequilas are often enjoyed neat or on the rocks, allowing the intricacies of the spirit to be savored. Super Premium Tequila represents the pinnacle of excellence in the Tequila market. These Tequilas are made from 100% blue agave and are aged for an extended period, often exceeding three years. The prolonged aging contributes to exceptional flavors, smoothness, and richness. Super Premium Tequilas offer a luxurious and indulgent drinking experience, with notes of oak, spices, and caramelized agave. The tequila market in each country of North America has different culture. The United States is the largest consumer of tequila in North America and plays a significant role in the global tequila market. Tequila consumption has been steadily growing, with an increasing interest in premium and artisanal offerings. The United States has a robust tequila market, characterized by a diverse range of brands and expressions available to consumers. Major cities like Los Angeles, New York, and Chicago have vibrant cocktail cultures that contribute to the demand for tequila. The popularity of Margaritas and the rise of mixology have further fueled the growth of the tequila market in the country. Mexico, being the birthplace of tequila, holds a crucial position in the tequila market of North America. It is both a significant producer and consumer of tequila. The tequila industry is centered in the state of Jalisco, where the town of Tequila is located. The Mexican market showcases a wide variety of tequila brands and expressions, catering to the preferences of domestic consumers. Tequila is deeply ingrained in Mexican culture and is consumed neat, as well as in cocktails like Palomas and Tequila Sunrises. Canada has been experiencing a growing interest in tequila, contributing to the expansion of the tequila market in North America. Tequila consumption has been on the rise, particularly among younger demographics and urban areas. The Canadian market offers a range of tequila brands, from mainstream to premium options, reflecting diverse consumer preferences. Margaritas are popular cocktails in Canada as well, especially during the summer months and at Mexican-themed establishments. The North American Tequila market can be categorized based on the distribution channels through which Tequila products are sold. The two primary distribution channels in the market are Off-Trade and On-Trade. The off-trade distribution channel refers to the sale of Tequila through retail outlets for consumption off-premises. This includes various types of stores, such as liquor stores, supermarkets, convenience stores, and online retailers. Consumers purchase Tequila bottles or products from these outlets and consume them at home or other off-premises locations. Off-trade distribution is a popular channel for Tequila sales, providing convenience and a wide range of options for consumers to choose from. The on-trade distribution channel refers to the sale of Tequila in establishments where it is consumed on-premises, such as bars, restaurants, hotels, clubs, and other hospitality venues. In the on-trade channel, consumers order Tequila drinks or shots from the establishment's menu and enjoy them within the premises. On-trade distribution allows consumers to experience Tequila in a social setting and often offers a curated selection of Tequila brands and cocktails. Some key trends and opportunities in the North American tequila market includes Premiumization, Craft and Artisanal Offerings, Agave Sustainability, Flavored and Ready-to-Drink (RTD) Tequilas, E-commerce and Direct-to-Consumer Sales, Health and Wellness Focus. The tequila market is dynamic and subject to evolving trends and consumer preferences.

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Manmayi Raval

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Considered in this report • Geography: North America • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report

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• North America Tequila Market with its value and forecast along with its segments • Country-wise Tequila Market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered in the report • United States • Canada • Mexico By Type • Blanco • Reposado • Anejo • Others By Grade • Value • Premium • High - End Premium • Super Premium By Distribution Channel • Off-Trade • On-Trade By off-trade Distribution Channel • Supermarkets and Hypermarkets • Discount Stores • Online Stores • Others By On-trade Distribution Channel • Restaurants and Bars • Liquor Stores • Others The approach of the report This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Artificial Lawn industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.