The Tequila Market is estimated to be valued at US$ 434.1 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Tequila is a distilled beverage made primarily from the blue agave plant, primarily in the area surrounding the city of Tequila, 65 km northwest of Guadalajara, and in the highlands of the Mexican states of Jalisco, Michoacán, Tamaulipas and Guanajuato. Tequila is known for its distinctive flavor made from the agave plant that invokes the essence of earthiness, citrus, spice and flowers that adds aromatic complexity to cocktails. Tequila's rich culture and heritage make it an exotic spirit choice among consumers globally.
Market key trends:
The blending trend of tequila with other flavoring ingredients is gaining popularity among consumers. This has led to the emergence of many flavored tequila variants infused with fruits, herbs and spices. Flavored tequilas infused with coffee, chili, cinnamon, lime are increasingly being adopted by new consumers who want to experiment with different flavors. The customizable flavors allow consumers to personalize their drinking experience. Moreover, ready-to-drink tequila cocktails infused with fruit flavors are witnessing high demand especially among millennials and Gen Z consumers. This blending trend is expected to drive the growth of tequila market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the tequila market is dominated by established players and requires large capital investments for production and distribution facilities.
Bargaining power of buyers: The bargaining power of buyers is moderate as large buyers like restaurants and bars can negotiate lower prices but the brand value retains customer loyalty.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials like blue agave plants have few substitutes and suppliers have pricing leverage but contracts ensure steady supply.
Threat of new substitutes: The threat of new substitutes is low as tequila has a unique taste profile and established brand imagery that is difficult for other spirits to replace.
Competitive rivalry: Intense competition among existing producers.
SWOT Analysis
Strengths: Distinctive taste of tequila attracts new consumers globally and brand loyalty ensures repeat purchases.
Weaknesses: Over-reliance on blue agave plantations makes supply vulnerable to climate change and diseases. Production costs are higher than substitute spirits.
Opportunities: Rising culture of cocktail experimentation and mixology expands the available customer segment. Growth of the Mexican restaurant industry boosts on-premise consumption.
Threats: Stringent regulations and certifications add compliance costs. Economic slowdowns lower discretionary spending on premium spirits.
Key Takeaways
The Global Tequila Market Growth is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing experimentation in cocktail recipes and expansion of Mexican cuisine worldwide. The market size for tequila was valued at US $434.1 Mn in 2023 and is projected to reach US $657.4 Mn by 2030.
Regionally, North America currently dominates the tequila market, holding over 50% market share in 2023 led by the large Mexican-American population in the US and rising popularity of tequila-based mixed drinks. However, Europe is witnessing the fastest growth due to growing interest in artisanal spirits and luxury goods across UK, Germany, Italy and Russia.
Key players operating in the tequila market are Bacardi and Company Ltd., Diageo PLC, Pernod Ricard SA, Constellation Brands, Inc., and Suntory Holdings Limited. These industry leaders are focusing on innovations like flavored and premium variety tequilas to appeal to new consumers while continuing distinctive branding to retain loyal customers.
For more insights, read - https://www.rapidwebwire.com/new-avenue-for-the-tequila-market-growth-size-share
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