Tequila in the US: Key market research findings
- Good harvest of agave from previous years drives the market
- Increasing demand for super-premium tequila in the market
- Key vendors—Jose Cuervo, Beam Suntory, Patron Spirits, Brown-Forman, and Diageo
Technavio’s market research analysts expect the tequila market in the US to grow at a CAGR of almost 4% between 2016 and 2020. Good harvest of agave in the past few years is the primary driver for market growth. Production of tequila hinges on the availability of agave as it the key ingredient in the spirit. Since agave plants take 8-10 years to be ready for harvest, the availability of good harvest from previous years is key to the growth of the tequila market. In 2015, the supermarkets and hypermarkets segment accounted for the majority of the revenue from distribution channels by occupying almost 45% of the market space. Their convenient location, close to residential neighborhoods, is responsible for the booming of this segment. The spurt in online stores and the increasing number of convenience stores across the country are projected to boost growth in the tequila market in the US during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the tequila segments by product price.
“The prevalence of organic practices is an up and coming trend in the tequila market. The increasing awareness about health and a preference for organic products is giving way to a rise in demand for organic tequila. As a result, a significant increase in the number of certified organic tequilas is expected during the forecast period. Existing brands of USDA-certified organic tequilas include 4 Copas from La Quemada Distillery, Casa Noble from La Cofradia Distillery, and 3 Amigos from Casa Tequilera de Arandas,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.
Currently, the premium segment occupies more than 52% of the market share to dominate the tequila market in the US. Premium tequila brands or products are priced between $20 and $30 per liter. However, the demand for premium tequila in the market is expected to drop during the forecast period due to an increasing preference for super-premium tequila amongst consumers.
The key vendors in the tequila market in the US include Jose Cuervo, Beam Suntory, Patron Spirits, Brown-Forman, and Diageo. The tequila market in the US is highly fragmented owing to the presence of numerous players. Many vendors are entering this market to compete on the basis of price and to tap the growing demand for premium tequila. Also, the vendors are introducing products in innovative packaging designs to attract customers and to increase their market share. However, it is estimated that the increasing competition among these vendors may negatively affect their profit margins.
A more detailed analysis is available in the Technavio report, Tequila Market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
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