After years of rapid growth, tequila’s market expansion is slowing, signaling a shift in consumer demand. At the end of 2023, Mexico held 525 million liters of tequila in storage, marking a significant surplus.
The tequila boom was fueled by factors such as:
- The resurgence of the Margarita, one of the world’s most popular cocktails.
- Celebrity-backed brands like Casamigos (formerly associated with George Clooney).
- Increased global exports, with Spain and Germany ranking as the top non-U.S. markets.
However, over the last 18 months, rising prices have led to a decline in demand, particularly in the U.S., which remains the largest tequila market. The category now faces uncertainties amid shifting consumer trends and potential trade policy changes in the U.S..
Despite this, tequila and mezcal now rank as the third-largest spirits category in the U.S., surpassing American whiskey, with only vodka and RTDs (ready-to-drink cocktails) selling more.
