South America Tequila Market Outlook, 2028

South America is known for its rich cultural diversity, and this diversity is reflected in the tequila market. While tequila is originally from Mexico, South American countries have their own drinking cultures and preferences. Each country brings its unique taste preferences and drinking traditions to the tequila market, creating a diverse and varied consumer landscape. South America is home to several local distilleries that produce their own tequilas. These distilleries often incorporate regional ingredients, distillation techniques, and aging processes to create tequilas that have a distinct flavor profile. These local tequilas offer consumers a chance to experience unique and authentic products that showcase the craftsmanship of the region. In some South American countries, tequila is incorporated into traditional drinks and cocktails. For example, in Colombia, there is a popular cocktail called "Aguardiente Sour," which combines tequila with the local spirit Aguardiente, lime juice, and sugar. This blending of tequila with traditional spirits or flavors adds a regional twist to the tequila market in South America. Similar to global trends, South America has witnessed a growing interest in craft spirits, including tequila. Craft tequila producers focus on small-batch production, high-quality ingredients, and traditional production methods. These artisanal tequilas cater to consumers who appreciate unique flavor profiles and the story behind the brand. The rise of craft tequilas has added a new dimension to the South American tequila market, offering consumers more options and variety. South America's tourism industry plays a role in the growth of the tequila market. Mexico, as the birthplace of tequila, attracts tourists from South America who want to explore its tequila distilleries and learn about the spirit's production process. This exposure to the tequila culture often leads to increased consumption in their home countries. According to the research report, “South America Tequila Market Outlook, 2028” published by Bonafide Research, The South America Tequila market is anticipated to add more than USD 82.26 Million from 2023 to 2028 ,Governments play a crucial role in regulating the production and labeling of tequila. As tequila is protected by an Appellation of Origin, it means that only tequila produced in specific regions of Mexico can be legally labeled and sold as tequila. Governments in South America would need to adhere to these regulations when importing and selling tequila in their countries. Governments, in collaboration with industry associations and tequila producers, may organize promotional events and festivals to showcase tequila and raise awareness among consumers. These events could include tastings, educational seminars, and cultural celebrations that highlight the history, production, and enjoyment of tequila. South America hosts various events and festivals that celebrate tequila and its Mexican heritage. They provide a platform for tequila producers, distributors, and enthusiasts to come together, exchange knowledge, and promote the tequila market in South America. The different types of tequila that may be available in the South American tequila market, which could include imported tequilas from Mexico. Such as Blanco, Reposado, Añejo, Extra Añejo. In addition to the main categories mentioned above, there can be variations and unique expressions within the tequila market. This could include limited edition or special releases, flavored tequilas, and blends with other spirits or ingredients. Some brand names that are known for their Blanco tequilas include Jose Cuervo Especial, Sauza Silver, and Patrón Silver. Popular brand names for Reposado tequilas in South America include Don Julio Reposado, Herradura Reposado, and 1800 Reposado. Some well-known brand names for Añejo tequilas in the South American market include Casa Noble Añejo, El Tesoro Añejo, and Gran Centenario Añejo. Some brand names known for their Extra Añejo tequilas include Clase Azul Ultra and Casa Dragones Barrel Blend.

The tequila market in some of the prominent countries in South America. Such as, Tequila consumption has been steadily growing in Brazil, driven by changing consumer preferences and an increasing interest in premium spirits. Brazil has a vibrant cocktail culture, and tequila is often used in popular cocktails like Caipirinha and Margarita. Major tequila brands have a presence in Brazil, and the market offers opportunities for both domestic and international tequila producers. Tequila consumption in Argentina has been on the rise in recent years, reflecting changing drinking habits and a growing interest in international spirits. Argentina has a well-established wine culture, but tequila has gained popularity among younger consumers and in trendy bars and restaurants. The market in Argentina offers opportunities for tequila brands to cater to a diverse consumer base. Tequila consumption in Colombia has been growing steadily, with a particular focus on premium and ultra-premium tequilas. The country has a dynamic cocktail culture, and tequila-based cocktails are gaining popularity. Colombia has seen an increase in the number of bars and restaurants offering tequila tastings and events, contributing to the growth of the tequila market. The tequila market in South America can be categorized into different grades based on quality and price. Includes Value Tequila, Premium Tequila, High-End Premium Tequila, Super Premium Tequila. The tequila market in South America can be categorized based on distribution channels, namely Off-Trade and On-Trade. Off-Trade refers to the sale of tequila through retail channels, where consumers purchase tequila for consumption at home. This includes supermarkets, liquor stores, convenience stores, and online retailers. Off-Trade channels offer a wide range of tequila brands and variants, providing consumers with convenience and the opportunity to explore different options at their own pace. Off-Trade sales have seen significant growth in recent years, driven by increased consumer interest in premium spirits and the convenience of online shopping. On-Trade refers to the sale of tequila in establishments where alcohol is consumed on-site, such as bars, restaurants, hotels, and clubs. On-Trade channels play a crucial role in introducing consumers to new tequila brands and providing a platform for experiential drinking experiences. Tequila-based cocktails and mixed drinks are often featured on menus in bars and restaurants, highlighting the versatility of the spirit. On-Trade sales are influenced by factors such as tourism, dining trends, and the expertise of bartenders and mixologists. Considered in this report

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Manmayi Raval

Research Consultant

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

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Countries covered in the report • Brazil • Colombia • Argentina 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.