MEZCAL MARKET

Global Industry Growth

The global mezcal market is projected to grow at the rate of 14.2% during the forecast period 2019 to 2023.

The most common varieties of agave used for mezcal are tobalá, tobaziche, tepeztate, arroqueño and espadín, which is the most common agave and accounts for up to 90% of mezcal production across the globe.

The US is the major importer of mezcal from Mexico which contributes around more than half the mezcal imports share in 2017. This factor is expected play major role to drive the market growth in the US and North America region.

Consumers are preferring mezcal over other tequila products due to variation of flavors depending on the type of agave used, where it was cultivated and each producer’s customized manufacturing technique.

Growing Demand of Luxury Agave Spirit to Drive the Mezcal Market Growth Majority of tequila and mezcal are made by distilling the fermented juice of agave plants in Mexico and contributes for more than 80% market share in the tequila and mezcal production and supply.

Mexico exports some USD 1.2 billion worth of tequila and mezcal to about 100 different markets worldwide, led by the US, Europe and South America whereas the US alone imports more than 171,731 thousand liters of tequila including mezcal.

The rise of cocktail culture in the US has helped to make the mezcal trendy, with bars offering various varieties of mezcal and tequila. As a result, super-premium tequila including mezcal increased its volume by an explosive 651% in 13 years, according to Consejo Regulador del Tequila. Millennial consumers are more enthusiastic to try new flavors and variants as compared to the older demographic.

Mezcal vendors are catering primarily to this large demographic consumer base as the consumption of tequila and mezcal is maximum among this consumer segment.

The US has large millennial consumer base and this encourages vendors to expand their geographical presence and increase their consumer base in this country which is supporting the mezcal market growth.