Tequila growth boosted by US market

The tequila market is growing steadily. Covid-19 can affect the global economy in three main ways: by directly affecting production and demand, by creating supply chain and market disruption, and by its financial impact on firms and financial markets.

Tequila is a distilled beverage which is made out of the blue agave plant. There exist two major categories of tequila: ‘100% agave’ and ‘Mixtos’. The term tequila is protected and may only being used on the product label if the alcoholic beverage is produced in specific regions of Mexico and contains at least 51% of agave.

The global Tequila market size is projected to reach USD 7746.7 million by 2026, from USD 5784 million in 2020, at a CAGR of 5.0% during 20212026.

According to Statista, The global tequila market is characterised by leading brands such as Sauza, Patrón, and El Jimador. Patrón tequila sold about 2.8 million 9 litre cases in 2019. Regionally, most of tequila was exported to the United States from its country of origin Mexico. The U.S. was by far the largest recipient of the Mexican liquor, followed by further important markets such as Spain and Germany.

The sales volume of the American core market showed a continuous growth since 2004 and reached an all-time high exceeding 20 million 9 litre cases sold in 2019. The tequila brand Jose Cuervo commanded nearly 20% of U.S. tequila volume sales in 2019. Patrón tequila also accounted for a double-digit volume share in that year.

The latest consumption statistics illustrate that consumers aged between 18 and 29 drink the most tequila in the United States, with almost 45.6% of respondents within this age range stating that they drink the alcoholic beverage. The total U.S. consumption of tequila amounted to nearly 20 million 9 litre cases in 2019. Broken down on a statelevel, California ranked first in terms of consumption. Texas and Florida rounded off the leading three consumption states.