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The tequila market size in US is estimated to grow at a CAGR of 5.99% between 2022 and 2027. The tequila market size in US is forecast to increase by 89.21 million L. The growth of the market depends on several factors, including the increasing number of strategic alliances, the growing demand from Millennials, and the growing influence of online retailing.
This tequila market in US report extensively covers market segmentation by product (premium tequila, super-premium tequila, value tequila, and high-end premium tequila) and distribution channel (on-trade and off-trade). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing number of strategic alliances are notably driving the market growth, although factors such as fatalities caused due to alcohol-impaired driving may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving growth in the US tequila market is the increasing number of mergers and acquisitions. Most of the large companies operating in the market are focused on acquiring smaller companies with the goal of increasing their market presence and gaining access to new products and technologies. Therefore, an increase in strategic alliances such as collaborations and mergers and acquisitions are driving the growth of the market. Moreover, owing to the high popularity of tequila among consumers, especially millennial, the number of strategic alliances is expected to increase during the forecast period.
In addition to this, the concept of vertical integration is also gaining traction in the alcoholic beverages industry. As per this concept, the producing company is involved in and takes over full responsibility for all the stages of the value chain. However, due to a three-tier system of alcohol distribution in the US, which comprises importers or producers; distributors; and retailers, vertical integration is prohibited in most parts of the US. Thus, the increasing number of mergers and acquisitions will have a positive impact on the growth of the market during the forecast period.
Increasing popularity of tequila among millennial consumers is the primary trend in the US tequila market. The growing popularity of tequila among millennial consumers is a positive trend that the market is eyeing. Millennial consumers have high purchasing power, making them an attractive consumer segment for tequila makers. Therefore, players have started developing new products for millennials. Many players are also coming up with new and innovative marketing strategies to connect with millennial consumers.
Social media has a considerable influence on the purchasing decisions of millennial consumers, and players have started focusing on using various social media platforms to advertise their products. The demand for premium tequila is increasing among Millennials, and most millennial consumers prefer 100% agave tequila products. Therefore, the increasing demand for tequila among millennial consumers will help in the growth of the market during the forecast period.
The fatalities caused due to alcohol-impaired driving will be a major challenge for the US tequila market. The rising number of deaths from drunk driving in the United States is likely to limit the growth of the market in the coming years. Drunk driving accidents are on the rise in the United States, and nearly 28 people nationwide are killed every day due to drunk driving. Died in a car accident. The total annual cost of alcohol-related accidents exceeds US 40 billion.
In 2022, accidents that involved drunk driving contributed to about 40% of the overall traffic-related deaths in the US. This factor will affect the growth of the market during the forecast period. Many organizations, such as Mothers Against Drunk Driving (MADD), the American Medical Association, and the National Center on Addiction and Substance Abuse, are working toward discouraging alcohol consumption, especially among the youth in the US. Such factors will hinder the market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Tequila Market in US Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ambhar Global Spirits LLC: The company offers tequila such as Tequila Reposado, Tequila Plata, and Tequila Anejo.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the premium tequila segment will be significant during the forecast period. Premium tequila was the largest segment in the tequila market in US in terms of volume in 2022. This segment includes tequila products priced between 20 per liter and 30 per liter. It will be primarily driven by the increasing perception among consumers that premium tequila products are made from better quality ingredients than normal tequila.
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The premium tequila segment was valued at 109.95 million L in 2017 and continue to grow by 2021. In this segment, an increase in new launches and the addition of new flavors to existing product lines drives the premium tequila segment. Millennials are an attractive consumer segment for market participants due to their high purchasing power. With this in mind, demand for premium tequila among millennials is expected to drive segment growth over the forecast period.
Some of the major brands in this segment include Becle SAB de CV. For instance, under the portfolio Becle SAB de CV offers Tradicional Reposado, which is produced in Mexico and sold in US and Mexico under the premium tequila category. Such premium tequila products are also available through on trade and off trade channels. Therefore, the easy availability and affordability of premium tequila products in the US are likely to drive the growth of the segment during the forecast period.
The tequila market in US report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the tequila market in US as a part of the global distillers and vintners market within the overall food and beverages sector. The distillers and vintners market covers distillers, vintners, and producers of alcoholic beverages such as wine, spirits, and liqueur. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Tequila Market Scope in US |
|
Report Coverage |
Details |
Page number |
129 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.99% |
Market growth 2023-2027 |
89.21 million L |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.51 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ambhar Global Spirits LLC, Becle SAB de CV, Brown Forman Corp., Casa Aceves Spirits, Charbay Distillery, Davide Campari Milano NV, Eastside Distilling Inc., El Grado Spirits LLC, Heaven Hill Sales Co., Lucas Bols Amsterdam BV, Suntory Holdings Ltd., Tequila 512, Tequila Fortaleza, Tequilera Corralejo SA de CV, William Grant and Sons Ltd, Bacardi Ltd., Constellation Brands Inc., Diageo Plc, Pernod Ricard SA, and Casa Komos Brands Group |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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