The global tequila market size is projected to reach USD 14.70 billion by 2028. The rising trend of cocktails is increasing people’s interest in tequila-based drinks as they are rich in flavors compared to other alcoholic beverages. Besides, agave tequila (100 percent agave) contains low sugar content and is carbohydrate-free making it a healthy alternative over other alcoholic drinks. Fortune Business Insights™ published this information in a report, titled, “Tequila Market, 2021-2028.” As per the report, the market stood at USD 9.41 billion in 2020 and USD 9.89 billion in 2021. It is set to exhibit 5.8% during the forecast period between 2021 to 2028.
Increasing Consumption of Spirits at Homes amid COVID-19 Pandemic to Augment Growth
The COVID-19 pandemic has led to the closure of various tequila manufacturing units and caused hindrance in transportation and logistics services amidst lockdown. Despite such staggering effects of the pandemic, the consumption of alcoholic beverages, such as tequila increased. People preferred drinking at homes as e-retailers are continuing with their home delivery services. A Tequila Regulatory Council report states that the production increased by 3.8% compared to previous years.
Report Coverage-
This report includes in-depth information about the tequila industry. The data present in it provides quantitative and qualitative analysis of the market. It includes information about new product launches and technological advancements in distilleries. It offers information based on multiple factors, such as opportunities, challenges, drivers, and restraints. It will also deliver a complete insight about key industry players and recent mergers and acquisitions related to the market.
Drivers & Restraints
Demand for Fresh and Exotic Flavor of Alcoholic Beverages to Drive Market
The demand for unique and exotic flavors is expected to propel the market growth in the upcoming years. Serval alcoholic beverages manufacturers are experimenting and coming up with innovative flavors. For instance, a major spirit manufacturer Patron Spirits International launched various flavors, such as black pepper, floral, and turmeric to allure its customers. Besides, people are inclined towards the quality of products. According to a DISCUS report, they prefer more sophisticated and premium beverages. At the same time, rapid urbanization and high disposable incomes would boost the tequila market growth.
On the contrary, the availability of low alcohol by volume drinks, such as beer is expected to negatively affect the market growth.
Segments
Blanco Segment to Lead Stoked by its High Usage in Cocktails
By the type, the market is categorized into blanco, reposado, anejo, and others. Out of these, the blanco segment holds a significant market share because of its definite agave flavor. Moreover, it is excessively used in various cocktails, such as margarita and paloma due to its smoother taste and high availability. The segment generated 39.08% in terms of the tequila market share in 2019.
The reposado and anejo segments are also rising significantly in the spirit market as people are more aware and experimental with their drinking preferences. Unlike blanco, these two are aged in oak barrels which provide them a honey and smoky finish.
Regional Insights-
North America Earned USD 5.77 Billion in 2020: Fortune Business Insights™
In 2020, North America dominated the global market by procuring USD 5.77 billion in terms of revenue. It is set to retain its position in the near future since people in this region are more inclined toward spirit-based drinks. According to a report by the International Wine and Spirits Research (IWSR), the North American area is the highest consumer of such premium drinks due to its large Hispanic population.
In Europe, countries, such as France, Germany, and the U.K. would showcase an astonishing growth fueled by the increasing demand for artisanal spirit drinks. Moreover, in 2019, spirit registered its Geographical Indication, which provided it the recognition of a EU spirit.. This will further promote the regional market.
Competitive Landscape-
Key Players Aim to Focus on Innovation and New Product Launches to Generate More Shares
The global tequila market is highly fragmented with the presence of numerous companies. Most of them are engaged in launching new products to strengthen their positions in the market. For example, Bacardi & Companies Ltd and Proximo Spirits are focusing on new launches to maintain a significant edge in the tequila industry.
Industry Developments
April 2021: Diageo acquired Loyal 9 Cocktails, a fast-growing spirits-based ready-to-drink brand of Sons of Liberty Spirits Company. Few of Diageo’s spirits-based ready-to-drink beverages are Ketel One Botanical Vodka Spritz, Tanqueray Crafted Gin Cocktails, and Crown Royal Ready to Drink Cocktails which are highly popular amongst consumers.
November 2020: Electric Car manufacturer Tesla launched its Tequila called Teslaquila. It is pure agave tequila aged in oak barrels in France. Currently, these are only available in the United States.
Fortune Business Insights™ lists out the prominent tequila providers operating in the global market:
· Diageo Plc
· Tequila Ocho
· Bacardi & Company Ltd.
· Vault Fine Spirits Pvt Ltd
· Proximo Spirits Inc
· Pernod Ricard S.A
· Casa Aceves Spirirs
· Brown-Forman Corporation
· Tequila Fortaleza
Browse Summary
https://www.fortunebusinessinsights.com/tequila-market-104172
