Tequila market growth will be sustained over the next seven years, with a compound annual growth rate of 9.5% between 2024 and 2030, according to forecasts by Grand View Research.
This San Francisco, California-based market analysis firm estimated the value of the global tequila market at $10.53 billion in 2023.
Originating in Mexico, tequila is one of the fastest growing spirits in the world, although it still accounts for only 3% of sales in the global spirits market.
Tequila market growth
The following five states in Mexico (together 181 municipalities) have the tequila appellation of origin:
- Tamaulipas
- Nayarit
- Michoacán
- Guanajuato
- Jalisco
Jalisco is the only state in Mexico where tequila can be produced throughout its territory.
National production
In 2023, Mexico produced about 599 million liters of tequila. However, approximately 100 million remained in storage. Part of this volume was kept in barrels. Another part was not bottled. This created a surplus that some analysts call a “tequila lake”. It is estimated that this dead-end inventory is between 500 and 525 million liters.
The following year, in 2024, Mexico produced 496 million liters of tequila, down from a record 651 million liters in 2022.
There are several causes behind this situation. On the one hand, overproduction and a drop in international demand, especially in the United States. In addition, the price of agave fell. This was compounded by an accelerated expansion of industrial capacity.
However, according to Stellar Spirits and Wines, a key factor is the growing demand for premium and artisanal tequila. Consumers are prioritizing quality over quantity, and many are willing to pay more for high-quality, 100% agave tequilas.
Below is the trend for tequila production in Mexico, in millions of liters:
- 2018:309.
- 2019:352.
- 2020:374.
- 2021:527.
- 2022:651.
- 2023:599.
- 2024:496.
Around 54% of 18-34 year olds prefer premium tequila. The segment is projected to grow substantially.