Tequila Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Blanco, Joven, Mixto Gold, Reposado, Anejo, Extra Anejo), By Price Range (Premium Tequila, Value Tequila, Premium and Super-Premium Tequila, Ultra-Premium Tequila), By Distribution Channel (On-trade, Off-trade), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 13.25 Billion
CAGR (2026-2031)	7.34%
Fastest Growing Segment	Off-trade
Largest Market	North America
Market Size (2031)	USD 20.27 Billion

Market Overview

The Global Tequila Market will grow from USD 13.25 Billion in 2025 to USD 20.27 Billion by 2031 at a 7.34% CAGR. Tequila is a distilled spirit protected by a designation of origin and produced exclusively from the blue agave plant in specific regions of Mexico. The market growth is fundamentally supported by the expanding global appreciation for appellation-based spirits and the increasing versatility of the beverage in mixology sectors beyond standard cocktail usage. This demand for higher quality products has sustained export volumes even as broader economic conditions fluctuate. According to the Tequila Regulatory Council, in 2024, exports to the United States increased by 4.1 percent to reach 335 million liters.

However, a significant challenge impeding broader market stability is the current cycle of agricultural oversupply. The industry faces a surplus of agave inventory that has led to substantial price volatility for raw materials and finished goods, complicating long-term planning for producers. This excess stock creates downward pressure on value and threatens the economic sustainability of the supply chain as stakeholders navigate a period of market correction and inventory normalization.

Key Market Drivers

The accelerated consumer shift toward premium and ultra-premium tequila continues to reshape the market's value structure, as drinkers increasingly prioritize high-quality, 100% agave spirits over standard varieties. This behavior has compelled major producers to focus on upper-tier portfolios and aged expressions to capture higher margins, effectively insulating revenue streams from broader volume declines in standard segments. This resilience is evident in recent financial performance. According to Diageo, July 2024, in the 'Preliminary Results Year Ended 30 June 2024', net sales for its premium Don Julio brand increased 12 percent in the United States, driven largely by the popularity of its Reposado variant. This premiumization trend ensures that value growth outpaces volume growth as consumers maintain their preference for luxury appellation spirits.

Concurrently, the surge in at-home consumption and ready-to-drink (RTD) tequila formats is expanding the category's reach to new demographics and usage occasions. The convenience of high-quality, tequila-based premixed cocktails has bridged the gap between complex mixology and casual drinking, sustaining brand visibility outside traditional on-premise venues. This segment's expansion drives industry revenue; according to the Distilled Spirits Council of the United States, February 2025, in the 'Annual Economic Briefing', revenue for premixed cocktails, including spirits-based RTDs, rose 16.5 percent to reach $3.3 billion in 2024. This diversification supports overall industrial activity, which remains high despite market normalization. According to the Tequila Regulatory Council, in 2025, the total production of tequila reached 495.8 million liters for the full year of 2024, reflecting the sector's sustained capacity to meet global demand.

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Key Market Challenges

The substantial impediment hampering the stability of the global tequila market is the cyclical crisis of agricultural oversupply involving Blue Agave. This excess availability of raw material fundamentally disrupts the pricing structure of the supply chain, causing the value of agave to plummet and threatening the economic viability of cultivation. Instead of focusing resources on market expansion or product innovation, producers are forced to navigate a volatile environment characterized by rapidly depreciating assets and rising inventory holding costs. This financial uncertainty discourages long-term investment and creates a reactive market atmosphere where stakeholders must prioritize inventory correction over strategic growth.

The severity of this saturation is evident in recent inventory data, which illustrates a significant disconnect between current production capabilities and actual consumer offtake. According to the Tequila Regulatory Council, in 2024, the industry held a total inventory of 522 million liters of tequila, a volume that underscores the magnitude of the stock surplus relative to demand. This massive overhang of finished product exerts downward pressure on value across the sector, forcing the market into a necessary but stagnant period of absorption that directly delays broader developmental progress.

Key Market Trends

The adoption of sustainable and zero-waste distillation practices has evolved into a critical operational standard, driven by the need to mitigate the environmental impact of intensive agave processing. Producers are increasingly integrating circular economy principles, utilizing biomass boilers and advanced vinasse treatment systems to reduce reliance on fossil fuels and minimize landfill output. This shift is not merely regulatory but strategic, as efficiency gains directly counter rising input costs while satisfying the ethical sourcing requirements of modern consumers. According to Becle, July 2025, in the '2024 Integrated Annual Report', the company achieved a 13 percent reduction in energy intensity ratio versus 2023, demonstrating the tangible industrial benefits of these green manufacturing investments.

Concurrently, the rise of agave spirits tourism and brand experiential marketing is reshaping the consumer acquisition funnel, moving beyond traditional advertising to immersive education. The professionalization of the 'Tequila Trail' and urban brand homes allows producers to control the narrative, ensuring strict adherence to denomination of origin standards while cultivating brand loyalty through direct engagement. This trend is formalized through certification programs that validate the authenticity of gastronomic experiences globally, ensuring verified representation in export markets. According to the Tequila Regulatory Council, December 2024, in the 'The Tequila Regulatory Council (CRT) awarded the “T Distinction”', the number of international establishments certified for their commitment to promoting tequila culture reached 85, highlighting the expanding global infrastructure for educated consumption.

Segmental Insights

The Off-trade segment is currently the fastest-growing category in the global tequila market, primarily driven by a sustained shift toward at-home consumption. This expansion is supported by the increasing availability of diverse tequila brands across supermarkets, hypermarkets, and specialty liquor stores. Furthermore, the rapid development of e-commerce channels has enhanced accessibility, allowing consumers to conveniently purchase products for private social gatherings. Industry analysis indicates that the growing popularity of home cocktail preparation continues to strengthen retail performance, cementing the dominant role of the Off-trade sector in driving overall market value.

Regional Insights

North America holds a dominant position in the global tequila market, driven primarily by substantial consumption in the United States and Mexico. This leadership is supported by strong trade relations and the geographic proximity of Mexico, the sole producer of authentic tequila as verified by the Tequila Regulatory Council. The region benefits from a shift in consumer preference toward premium agave-based spirits and the widespread popularity of tequila cocktails. Consequently, North America maintains a robust supply chain and extensive distribution networks, ensuring its continued status as the primary revenue generator for the industry.

Recent Developments

• In April 2025, Diageo formed a strategic joint venture with Main Street Advisors to optimize its North American and global brand portfolios. Through this agreement, the company exchanged the majority ownership of its North American rights for Cîroc vodka to acquire a majority interest in Lobos 1707 Tequila worldwide. This equity swap was designed to accelerate the tequila brand's growth by utilizing the company's extensive route-to-market capabilities and marketing expertise. The collaboration aimed to unlock new revenue streams and strengthen the company's position in the high-growth tequila category through a partnership focused on culture and brand building.
• In August 2024, Pernod Ricard acquired a minority stake in Almave, a super-premium non-alcoholic agave spirit brand. Co-founded by a prominent Formula One driver and a Mexican spirits incubator, the brand produces its liquid from blue agave in Jalisco, mirroring traditional tequila production processes while skipping fermentation. This strategic investment enabled the French spirits group to expand its portfolio into the rapidly growing non-alcoholic category. The company leveraged its global distribution network to scale the brand, highlighting a commitment to capitalizing on mindful drinking trends and premiumization within the broader global agave market.
• In July 2024, Patrón Tequila introduced its first-ever Cristalino expression, expanding its portfolio in the luxury additive-free category. The new product utilized an añejo tequila base matured in four different types of oak barrels before being filtered through wood charcoal to remove the color while retaining complex aged flavors. Packaged in a distinctive crystal-clear glass bottle featuring a piña pattern, the launch aimed to elevate the standards of the cristalino market segment. The company emphasized its dedication to traditional craftsmanship and innovation, targeting consumers seeking a smooth, premium sipping experience within the competitive global tequila landscape.
• In June 2024, Tequila Don Julio launched its first-ever global cask sale, featuring five limited-edition expressions of its Don Julio 1942 tequila. Conducted via an auction on BlockBar, the release offered casks finished in vessels that previously held Crémant, Orange Wine, Ruby Port, Madeira Wine, and Bourbon. This initiative represented a significant innovation in the ultra-premium market, allowing collectors to own a bespoke version of the brand's celebrated liquid. The successful bidders were granted ownership of the unique casks and invited to the distillery, reinforcing the company's commitment to delivering exclusive luxury experiences in the tequila sector.

Key Market Players

• Pernod Ricard S.A.
• Diageo plc
• Bacardi Limited
• Suntory Holdings Limited
• Bardstown Bourbon Company
• Davide Campari-Milano N.V.
• Sazerac Company Inc.
• Brown-Forman Corporation
• Green River Whiskey
• Constellation Brands, Inc.

By Product Type	By Price Range	By Distribution Channel	By Region
Blanco Joven Mixto Gold Reposado Anejo Extra Anejo	Premium Tequila Value Tequila Premium and Super-Premium Tequila Ultra-Premium Tequila	On-trade Off-trade	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Tequila Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Tequila Market, By Product Type:

• Blanco
• Joven
• Mixto Gold
• Reposado
• Anejo
• Extra Anejo

• Tequila Market, By Price Range:

• Premium Tequila
• Value Tequila
• Premium and Super-Premium Tequila
• Ultra-Premium Tequila

• Tequila Market, By Distribution Channel:

• On-trade
• Off-trade

• Tequila Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE