The global tequila market size is expected to reach USD 14.70 billion by 2028, exhibiting a CAGR of 5.8% during the forecast period. The growing trend towards artisanal spirits coupled with high alcohol consumption among consumers will push the growth of the tequila market in the forthcoming years, states Fortune Business Insights, in a report, titled “Tequila Market Size, Share & COVID-19 Impact Analysis, By Type (Blanco, Reposado, Anejo, and Others), Grade (Value, Premium, High-end Premium, and Super Premium), Distribution Channel (On-trade and Off-trade), and Regional Forecast, 2021 – 2028.” The market size stood at USD 9.41 billion in 2020.
Flourishing E-commerce Channels to Stabilize Market during Pandemic
The COVID-19 pandemic caused massive disruption in the food and beverage industry's supply chain because of restrictions on transportation and logistics. However, the global market reported a steady performance in its annual sales. According to the Tequila Regulatory Council (CRT), its production increased 3.8% compared to the same period of the previous year. The consumers' shift towards drinking at home during the pandemic has led to heightened sales of alcoholic beverages. The bricks-and-mortar alcohol stores remained closed, which negatively impacted the business; nevertheless, the e-commerce channel flourished as people started ordering liquor online. Therefore, the popularity of e-commerce among consumers has unraveled several business plans for the liquor industry.
List of the Leading Companies Profiled in the Global Tequila Market are:
- 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)
The escalation in Cocktail Culture to Strengthen Tequila Business
Broad-spectrum of people indulging in cocktails such as Paloma, El Diablo, and others can offer immense growth opportunities in the market. The sweet, fruity, and earthy taste of tequila has been the cornerstone behind the drink's popularity among consumers. Moreover, major brands can further intensify tequila market share in the foreseeable future by introducing ready-to-drink cocktails. For instance, in January 2021, Molson Coors Beverage Co, a multinational drink and brewing company headquartered in Chicago, announced its collaboration with spirits company Casa Komos Beverage Group to market ready-to-drink carbonated tequila Paloma cocktail, Superbird. Besides, consumer inclination towards flavorful alcoholic beverages will further bolster the market's growth during the forecast period.
This Report Answers the Following Questions:
- What are the market drivers, hindrances, and dynamics?
- Which region is set to dominate the market in the near future?
- How will the key players generate more sales amid the COVID-19 pandemic?
- Which segment is expected to remain in the leading position in the coming years?
Key Market Segments:
Based on type, the market is divided into blanco, reposado, anejo, and others. The blanco variant holds the lion’s share due to its earthy, semi-sweet, distinctive agave flavor. Its smoother taste and popularity boost its consumption among consumers. Reposado and anejo variants have also gained significant attraction in recent years due to rising awareness regarding spirits among consumers.
Based on grade, the market is classified into value, premium, high-end premium, and super premium. The premium tequila is expected to lead the segment owing to the demand for high-quality craft spirits among consumers. The premium-grade spirit is a mixture of all desirable attributes i.e., sensory appeal, mouthfeel, and texture.
Based on the distribution channel, the market is categorized into on-trade and off-trade.
What Does the Report Offer?
The report delivers supremely factual data, consisting of market drivers, trends, prospects, and obstructions. It also contains a profound investigation of all market segments, separately and collectively, and meticulous insights into the regional subtleties influencing the market growth. Apart from these, the market report brings an in-depth assessment of prominent companies and their business strategies
Driving Factors:
Launch of New Interesting Flavors to Incite Business Development
The increasing demand for exotic and artisanal spirits among the population will have an outstanding influence on the market. The popularity of flavourful and unique drinks with great taste has bode well for the alcohol industry. Hence, major companies are introducing new and exotic flavors to attract consumers and establish a name for themselves in the industry. For instance, Patron Spirits International introduced various flavors such as turmeric, floral, black pepper, and pumpkin. Furthermore, the high production and consumption of alcohol in developing countries will have an excellent effect on the tequila market growth. According to the Distilled Spirits Council of the United States (DISCUS), the spirit industry in 2019 experienced accelerated growth, with sales rising to 37.8% of the overall alcoholic beverages market. This was driven by sales growth in tequila, which was up by 12.4% in 2019.
Regional Insights:
Premiumization Trends to Accelerate Market in North America
Based on Geography, the market is separated into North America, Asia Pacific, Latin America, Europe, the Middle East and Africa. The North American market size stood at USD 5.77 billion in 2020 and is expected to remain dominant during the forecast period. The growing consumers’ inclination towards agave-based spirits in the U.S and Mexico to aid the expansion of the market. The increasing Hispanic population coupled with premiumization trends will further aid the growth of the market in the region. The high production of beverages can further contribute to the market growth in the region. For instance, 70% of the blue agave plant distilled beverage produced in Mexico was exported to 120 countries.
Competitive Landscape:
Product Launches by Prominent Brands to Intensify Business
The prominent companies are adopting strategies to reinforce their position in the market. The extensive production by prominent players in Mexico and the U.S. and product launch will aid the companies to remain at the forefront. Companies such as Diageo Plc, Bacardi & Company Ltd., Proximo Spirits, Inc., and Pernod Ricard S.A. are focused on innovating and improving their product quality. The companies are also focused on exports to maintain their stance in the industry.
Browse Summary of This Research Insights with Detailed TOC:
https://www.fortunebusinessinsights.com/tequila-market-104172
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