The Tequila & Mezcal Masters 2024 results

Economic pressures have slightly taken the heat out of the Tequila and mezcal market. But while customers may be tightening their belts, for the ones that are buying the bottles, there are amazing expressions to be had.

At the start of 2023, Tequila looked like an unstoppable force in the US. It had already nudged American whiskey sales by value, and was tipped to topple vodka from the top spot by the end of the year (IWSR Drinks Market Analysis). But updated IWSR insights shared towards the end of 2023 painted a different picture.

After several years of double-digit growth, volume growth of premium-plus Tequila in the US slowed to 4% during the first six months of 2023 compared with the same period the year before. In contrast, the standard, value-and-below segments started growing at a similar pace to their premium-plus counterparts after previously having declined. A cocktail of economic factors have contributed to this change, including increased living expenditures, as consumers grapple with rising costs worldwide.

IWSR also noted, however, that as Tequila has matured as a category, the quality of its offerings at all price points has improved, “justifying trade down”, said Marten Lodewijks, consulting director – US, IWSR.