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The Full State of The Tequila Market, What’s Driving Tequila?

The Full State of The Tequila Market, What’s Driving Tequila?

Marina Velez | January 29, 2024

What is it about tequila that has captivated American consumers? The spirit’s sense of place and provenance, for one, as well as its authenticity and the greater availability of high-quality products. Increased interest in Mexican culture and cuisine, including events such as the spring Cinco de Mayo holiday and Día de los Muertos (Day of the Dead) in November also contributes to tequila’s allure.

Tequila and mezcal sales remained red hot in the U.S. for 2022 as volume consumption grew 11.6%, advancing to 28.9 million 9-liter cases. Tequila was one of two spirits categories to attain double-digit volume growth last year. The category has been increasing at an average rate of 10.9% in the last five years, now claiming a 10% share of the entire Distilled Spirits market. Tequila was the second fastest-growing spirits category of 2022 and surpassed the Cordials & Liqueurs category to become the third largest spirits category.

There seems to be no stopping tequila or agave spirits in general. Tequila has experienced steady growth since 2002, with large growth gains happening within the last eight years. Interest in the category and the resulting boom in sales continue to drive growth, as consumers search for more premium offerings and look to broaden their drinking horizons to other agave-based beverages.

The category’s dynamics have evolved extensively over the last few years to include expressions beyond tequila blanco, which has elevated the category’s relevance and interest in the consumers’ mindset. Those interested in spirits and cocktails have likely noticed that tequila has been heating up. Mezcal has become more popular as well.


 **If you would like to read the full description and understand the complete state of the Tequila category, please visit the 2023 Liquor Handbook for more information.**

about the author

Marina Velez

Research Director, EPG Specialty Information

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