World Spirits Report 2024: Tequila & mezcal – The Spirits Business

Despite a slowdown in growth, agave spirits were one of the shining lights of the past year. We reveal the Tequila and mezcal brands to keep an eye on in 2025.

Agave spirits have been on fire in recent years, backed by major investments from drinks groups and celebrities, and growing interest in the category outside of the US. The US continues to be the leading market for agave spirits, with volume growth of 4% and a value rise of 7% in 2023, according to IWSR.

IWSR predicts that the premium‐plus segment will account for the vast majority of future value growth for the category, which is forecast to expand globally at a compound annual growth rate of 6% (2023‐2028).

Outside of the US and Mexico, agave spirits rose by 14% in volume and by 25% in value in 2023. Volumes in India nearly doubled during the same year.

However, after several years of double‐digit growth, the Tequila category is starting to see its momentum slow, according to Marten Lodewijks, president of IWSR’s US division. However, the stats show premium‐plus segments are generally still strong.

Recent data from IWSR reported a 1% drop in Tequila volumes in the first seven months of 2024 in the US, with the ultra‐premium and standard price segments falling by 8% and 3% respectively. In contrast, super‐premium (up by 4%), premium (up by 6%) and prestige‐and‐above Tequila priced over US$100 (up by 6%) all grew.

Tony Salles, El Tequileño’s third‐generation master distiller, believes there is “strong consumer demand for ultra‐premium spirits”, presenting an opportunity for agave spirits to “position themselves as luxury offerings”.

He says: “Consumers are willing to pay for higher‐quality, aged and limited edition products that highlight craftsmanship and unique flavours of agave spirits.” Salles also notes that there is “rising interest for cristalino Tequilas and still‐strength” expressions.

While mezcal is much smaller than the Tequila segment, this segment is predicted to rise by a CAGR of 10% (2022‐2027), according to IWSR.

Daniela Via, vice‐president of marketing at House of Tequila – Pernod Ricard, says: “Mezcal is capturing attention for its artisanal production methods and deep connection to Mexican heritage, offering consumers a unique and authentic taste journey.”

Mezcal seems to be following in Tequila’s footsteps, with the majority of major players having at least one mezcal in their portfolio. But acquisition activity in mezcal has been notably quieter compared with Tequila in recent years.

Next year will be the 30th anniversary of Pernod Ricard’s Del Maguey brand, with “exciting developments in the pipeline”, according to Via. Looking ahead to 2025, Via notes the Margarita’s growing presence in the US “especially with spicy variations, Tajín flavour, and additions like mango and pineapple”. She also believes the Paloma could “gain traction in southern Europe – particularly in Spain, Greece and Italy”.

Meanwhile, Patrón owner Bacardi is “heavily investing in Paloma weeks or even, on some occasions, months, to make sure that it’s the next drink that people are really interested in” according to global advocacy director Jacob Briars. Supporting the most popular serves for agave spirits seems like a smart move to help the category continue its positive momentum next year.

Calirosa Tequila

Backed by Maroon 5 frontman Adam Levine, Calirosa recently sold a majority stake to Amass Brands Group (a partner in singer Katy Perry’s De Soi brand). Since its launch in 2021, the brand has expanded to Canada and Japan. With access to Amass’s global distribution network and marketing resources, Calirosa could become the next Tequila to rival the global giants.

Cincoro Tequila

With numerous famous faces in the sports world attached to it, the Tequila brand now has backing from tennis star Serena Williams, and has kickstarted its global expansion in Italy, sponsoring football club AC Milan. Through a deal with Mangrove, it also recently landed in the UK, where it could be poised for further success.

Corte Vetusto

The mezcal brand was recently acquired by Aether Brand Group, and is available in the US, the UK, Italy, and Thailand. Aether Brand Group said it would look to “dramatically increase” and grow the brand’s distribution and international footprint.

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