Tequila is the fastest-growing of the major spirits categories, thanks to booming demand from its two key markets of Mexico and the US. The core of the category remains in the value brands that are still driving volume growth, but the attention is increasingly falling on the surging premium segment. The major spirits companies have moved aggressively into tequila in recent years, a clear signal of the potential that they see in this category not only in its core markets, but globally.
This report comes in PPT.
Tequila’s status as the top-performing spirit category globally can be attributed to its successful two-tiered growth: a still vibrant mass segment joined by an increasingly dynamic premium one. Many major spirits companies have responded by investing heavily in tequila and, as a result, the category is becoming much more important to them.
Geographically, tequila remains highly restricted to Mexico and North America, which are the site of nine-tenths of sales. Growth worldwide should accelerate as the major spirits companies push their new premium acquisitions on a global scale, but tequila will remain heavily reliant on its core markets for the foreseeable future.
Future growth will require further developing the premium segment to be the spearhead of growth without losing sight of the fact many tequila consumers are still looking for affordable products. This will require fending off numerous competing categories, not least the insurgent mezcal. Other potential threats to tequila include the sustainability of the agave plant and a delicate political situation between Mexico and the US.
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.See All of Our Definitions
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