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Tequila is as close as ever!!!

According to current reports by Neilsen IQ, Tequila comes in at 16.2  percent of sales vs. the king (Vodka), with the latter coming in at 16.9 percent of sales. Over the past five years, the volume of tequila in the US, the world’s leading tequila consumption market by some margin, grew by more than 40%. IWSR analysts expect tequila to continue to perform strongly. There has been a shortage due to tequila made from the agave plant for eight years. It’s the latest in a steady rise that’s seen tequila share go from 10 percent in 2017 to 13 percent in 2019 and 15 percent in 2020. According to IWSR Drinks Market Analysis, agave-based spirits surpassed rum and bourbon by volume in the U.S. in 2020. Overall, tequila rose by more than 30 percent between 2015 and 2020, according to IWSR data. This growth has only continued: Data from the market research company IRI shows an 11 percent increase in retail dollar sales from 2020 to 2021.

Looking ahead, tequila’s future will be shaped by innovation that continues to entice consumer interest. “Over the past five years, 100% blue agave products have exploded as the dominant product attribute consumers seek. Tequila production is regulated, however, so there are limitations. Most brands have focused on developing higher-quality products and unique elements in finishing or aging. No one could anticipate the meteoric rise in demand. Tequila is a widely used cocktail for sipping and a perfect one for mixing. Carlos Becerra, owner of, a trendy hotspot in the “ Gaslamp “ downtown San Diego said, premiering both known and up-and-coming artists. “The demand is so large that although we maintain our prices, we are often out of stock of the most popular brands, and we keep on a much higher level of spirits than any club.”


Who Is Buying Tequila?

Younger generations tend to over-index on tequila sales, with Gen Z holding eight percent of share on various off pre meous versus five percent overall) and millennials have 58 percent of the share (versus 53 percent overall). 

A wide tequila selection helps retailers with the youngest age group of consumers. “A winning assortment will contain a wide variety of tequila, as this is the leading spirit category among this age group,” s The high-end of the category (Anejo and other premium sipping tequilas) has seen strong growth, and a lot of recent brand launches have positioned themselves in the segment, especially celebrity brand launches. As we end the pandemic, there will likely be a certain level of trading down to below-premium brands, mainly when used as mixers. However, new upscale tequila brands have continued to enter the market even during the current landscape, so premiumization will likely continue. Experiment and enjoy the vast array of Tequila products!

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