Time to Throw Away the Lime? The New Age of Tequila

November 2019

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.

USD 1,325
Request More Information


This report comes in PPT.

Key findings

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.


Key findings
Tequila is outperforming the other major spirits categories
Premium brands are seeing the fastest growth
Even as premium expands, affordable brands remain crucial
Breaking down the drivers of tequila growth in Mexico and the US
Spending patterns favor additional growth in premium
How far can premiumisation go?
Turmoil in the top ranks of global tequila producers
Tequila is growing in importance for the big spirits companies
Companies focusing on premium are winning share
Trends in product development: Part One
Trends in product development: Part Two
The rise of mezcal occurs in parallel with that of tequila
Tequila-based RTDs on the heels of “White Claw Summer”
Can tequila move beyond its current geographical base?
What threat do trade barriers pose to the category?
Other major threats to tequila growth

Alcoholic Drinks

Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.

See All of Our Definitions


If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!