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The mezcal market is estimated to grow by USD 428.18 million at a CAGR of 13.18% between 2022 and 2027. The rising demand for premium spirit products, driven by changing consumer preferences and increasing disposable incomes, is driving market growth by increasing the demand for high-quality mezcal products. The increasing investment by international players, driven by the growing popularity of mezcal in international markets, is also boosting market expansion by increasing the availability of these products in global markets. Additionally, the increase in mezcal exports, driven by efforts to promote them as a premium spirit and expand its market reach, is driving market growth by increasing the global demand for mezcal.
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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This report extensively covers market segmentation by product (Mezcal joven, Mezcal reposado, and Mezcal anejo), distribution channel (offline stores and online stores), and geography (APAC, North America, Europe, Middle East and Africa, and South America).
The market share growth by the mezcal Joven segment will be significant during the forecast period. Mezcal joven refers to fresh mezcal spirits, clear, and typically aged for less than two months. Mezcal joven is either sold in its original form or as a joven Abocado (flavored or infused), which includes the addition of ingredients such as lavender, agave worm, and natural coloring and flavoring agents. Mezcal Joven products find high demand among consumers worldwide owing to their distinct, brighter, and crisper taste when compared with other aged mezcal varieties. Unlike other alcoholic beverages, such as whiskey, mezcal is perceived to taste best when it is not aged. Subsequently, the segment enjoys a dominant market share when compared with other mezcal products.
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The mezcal Joven segment showed a gradual increase in market share, from USD 209.71 million in 2017. The popularity of mezcal Joven is rapidly growing worldwide as a standalone drink and as a cocktail beverage, driven primarily by high on-premises sales worldwide. Ilegal Mezcal Joven (Ilegal Mezcal), Sombra Mezcal Joven (Davos Brands), and Montelobos Mezcal Joven (William Grant and Sons) are some of the popular mezcal Joven brands in the cocktail segment. The relatively lower price, easy availability, and the more diverse product range of mezcal Joven spirits, when compared with other products, make them a popular gateway mezcal drink among consumers. Overall, the mezcal Joven segment is expected to remain the fastest-growing product segment during the forecast period. Mezcal Joven is also expected to successfully rival alternative alcohol-based beverages such as tequila during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segment, along with their reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of Mezcal by residential consumers, which is driven by an increase in the global demand for the market.
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North America is projected to contribute 64% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is expected to witness significant challenges related to production and the impact of stringent regulations. The growing global demand is increasingly placing pressure on vendors regarding the sourcing of agave plants as well as wood, which is used as fuel in the distillation process. Additionally, the imposition of NOM 70 regulations in Mexico, which govern the production and export in the country, has significantly increased the certification and compliance costs for producers. These regulations are expected to continue to hamper the participation of small vendors and alter the competitive landscape of the market in North America during the forecast period.
Agave plants are a key ingredient in various products, particularly in Mexico's states like Oaxaca, Guanajuato, and San Luis Potosi. These plants play a crucial role in producing tequila, a popular alcohol-based drink. However, the high price of agave has led to challenges in the industry, affecting the production and pricing of tequila. Despite this, the market continues to evolve, with craft beer and spirits gaining popularity among millennials. E-commerce has also transformed the distribution of these products, providing new growth opportunities. Additionally, government regulations play a significant role in shaping market trends and the availability of tequila and other agave-based products in stores, supermarkets, and specialty stores. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The rising demand for premium spirit products is a key factor driving the global market growth. One of the major factors that are expected to drive the growth of the market during the forecast period is the rising demand for premium alcoholic beverage products. In the past few years, there has been an increase in the demand for premium and super-premium alcoholic beverages in countries such as the US and the UK, especially among Millennial consumers. The high spending capacity among consumers in developed economies such as North America and Western Europe and the rising emphasis by vendors on the launch of highly differentiated premium mezcal products are increasing the popularity and premiumization of mezcal spirits. This trend is further bolstered by the diverse distribution channels, including store-based and non-store-based channels, such as supermarkets, and the production regions, such as Zacatecas, Michoacán, Durango, and Puebla. Additionally, the influence of craft beer and smoothies on consumer preferences, along with the preferences of Millennials and the rise of craft spirits, are shaping the market dynamics. Various related festivals, such as the London Mezcal Week (UK) and Tequila Mezcal Week (US), focus on educating consumers on Mexican art, music, culture, and tradition as well as different Mexican agave spirits, such as mezcal, tequila, and raicilla. Growing consumer awareness about mezcal production and its differences from other premium alcoholic beverages, such as tequila, is expected to fuel the demand during the forecast period.
The popularity of handcrafted, artisanal Mezcal will fuel the global market growth. Though the market entry of established distillers such as Diageo and Tequila Cuervo La Rojena SA de CV (Tequila Cuervo) is expanding the production process of mezcal spirits on a commercial scale, the demand for handcrafted, artisanal mezcal spirits is high, especially in North America. Consumers in the US and Mexico are willing to pay a premium for traditionally crafted mezcal spirits. Such varieties of mezcal are generally produced by small-scale family distilleries in Mexico. The production of handcrafted, artisanal mezcal is more than mass-produced mezcal spirits. Vendors such as Pernod Ricard SA, Kimo Sabe, and Fidencio Mezcal (Fidencio) offer premium and ultra-premium handcrafted, artisanal mezcal. The popularity of artisanal mezcal has contributed to an increase in the number of mezcal tours in Mexico, where interested tourists can visit and learn about handcrafted mezcal production in villages such as Oaxaca, Durango, Zacatecas, and Guerrero. Thus, the rising demand for handcrafted artisanal mezcal is expected to drive the growth of the market during the forecast period.
Increasing production and supply constraints are a major challenge to market growth. The global market is facing significant challenges related to the production and supply of mezcal products. Unlike tequila, which is also produced from agave plants, mezcal is difficult to produce commercially due to the long maturing period of the agave plant species used for production. Around 30 species of agave plants are used to produce mezcal, with each of them offering a distinct flavor and having different growth cycles. The sugar-rich base of the agave plant is crushed, fermented, and distilled in wood-based ovens to produce mezcal. The increased production by distillers in Mexico to cater to the rising global demand for spirits is expected to lead to increased deforestation and accentuate the difficulties related to wood procurement in Mexico during the forecast period. Also, the adoption of stringent certification procedures for export-quality Mezcal in Mexico has considerably increased the compliance costs for vendors in the country. Thus, the challenges related to the production and supply of mezcal spirits are expected to hamper the growth of the market during the forecast period.
Our analysis of the Life Cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including Mexico, the US, China, Germany, and the UK. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Market Customer Landscape
Companies 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
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, 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 is witnessing significant growth driven by factors such as lifestyle change, increasing online market presence, and rising interest in premium and organic products among millennials and GEN Z. Celebrities endorsing mezcal have also contributed to its popularity. The market is characterized by sustainable agave sourcing and a focus on quality and authenticity. Mezcal is favored in high-end restaurants, luxurious hotels and cafes, and restro-bars for its unique alcoholic flavor and aroma. Crafted spirits and ethically sourced products are in demand, reflecting consumer preferences for natural ingredients and cold-pressed juice.
The market is influenced by lifestyle changes and the preferences of millennials and Gen Z, who are driving demand for alcohol-based drinks. Factors such as raw material supply, Traveling disruption, and government regulations impact the market. Technological innovations are enhancing distillation systems and improving the quality and authenticity of mezcal. Ongoing technological innovations are enhancing spirit production and improving the volatile profile of mezcal, impacting factors such as the extraction process, solvent consumption, and extraction quality. Bars around the globe serve up a mix of traditional cocktails alongside innovative creations, offering patrons a taste of tonic wine and premium alcohol beverages. Mixed Tequila concoctions are a hit in hypermarkets, clubs, pubs, resorts, and food service establishments, catering to diverse tastes. Amidst stress and anxiety, consumers seek solace in health-focused options sourced from sustainable farming practices. Online distribution channels connect travelers with oak-barrel-aged spirits infused with vanilla and caramel notes, whether for on-trade or off-trade consumption. Agave varietals continue to entice in the ever-evolving landscape of travel, tourism, and mixology.
Mixologists are revolutionizing the bar and cafe scene with customized mezcal flavors, catering to the preferences of the young generation. Purified mezcal, blended into traditional and innovative cocktails, complements the demand for imported and premium spirits. Craft distilleries focus on stress relief amidst hypermarket, club, pub, resort, and food service establishment settings. Health-conscious consumers favor mezcal's antioxidant properties, while social media promotes sustainable and organic farming practices. Online and offline distribution channels ensure accessibility, while bartenders curate mezcal experiences for travelers, emphasizing aging options and sustainable production methods. Regulatory standards and certifications uphold quality control in the mezcal industry's pursuit of eco-friendly practices.
Our market report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2017 to 2027. The market has been segmented by product, distribution channel, and region.
Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.18% |
Market growth 2023-2027 |
USD 428.18 million |
Market structure |
Fragmented |
YoY growth (%) |
12.85 |
Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
Performing market contribution |
North America at 64% |
Key consumer countries |
Mexico, US, China, Germany, and UK |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
BACK BAR PROJECT, BANHEZ SPIRITS COMPANY LLC, Becle SAB de CV, Craft Distillers, Davide Campari Milano NV, Destileria Tlacolula, Diageo Plc, DONA VEGA LLC, Dos Hombres Inc., El Silencio Holdings LLC, Ilegal Mezcal, Kimo Sabe Mezcal, Lagrimas de Dolores SPR de RL, Las Joyas del Agave SA de CV, Mezcal de Amor SAPI de CV, Mezcal Vago, Pernod Ricard SA, Rey Campero, and Scorpion Mezcal |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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