The North America agave spirits market size was valued at USD 9.61 billion in 2022 and the market is projected to grow from USD 10.65 billion in 2023 to USD 18.83 billion by 2030, exhibiting a CAGR of 8.49% during the forecast period.
The North America market has experienced an increasing number of craft distilleries that produce mezcal and tequila. The rising popularity of premium spirits in countries including Canada, Mexico, and the U.S. has driven the region’s demand for mezcal and tequila.
List of Key Players Present in the Report:
- Ilegal Mezcal (U.S.)
- El Silencio Holdings, INC. (U.S.)
- William Grant & Sons (U.K.)
- Mezcal Vago (Mexico)
- Rey Campero (Mexico)
- Wahaka Mezcal (Mexico)
- Diageo Plc. (U.K.)
- Revel Spirits (U.S.)
- Casa Cortés (Mexico)
- Campari Group (Italy)
COVID-19 Impact:
Closure of Bars, Restaurants, and Pubs During Pandemic Affected the Market Growth
The COVID-19 pandemic has negatively affected the market. The market was hampered due to nationwide lockdown, bars, restaurants, and pub closures, and social gatherings restrictions. The sales of tequila and mezcal were hampered due to the COVID-19 lockdown.
Segments:
Growing Popularity of Tequila-Based Cocktails to Drive Market Growth
By product type, the market is segmented into tequila, mezcal, and others. The tequila segment will dominate and is estimated to hold a significant spirits market share during the forecast period. The segment’s growth is attributed to the growing popularity of tequila-based cocktails in the region.
Rising Interest in Craft and Premium Spirits to Propel Market Growth
By distribution channel, the market is divided into on-trade and off-trade. The off-trade segment is expected to dominate and hold the largest market share during the forecast period. The rising interest of consumers in craft and premium spirits increased at-home consumption, and the rising popularity of cocktail culture has raised off-trade sales in the region.
Geographically, the market is studied across the U.S., Canada, and Mexico.
Drivers & Restraints:
New and Exotic Flavors Innovation to Drive Market Growth
The North America agave spirits market growth is driven by rising demand for new and exotic flavored agave spirits. Products, such as tequila and mezcal, have attracted consumers seeking more unique offerings in the agave spirits category. In July 2022, global spirits company Casa Lumbre launched Contraluz, its first flavored premium and artisanal mezcal. Contraluz contains citrus, light smoke flavors, green agave, cedar, vanilla, and dried fruit notes.
High-yielding mono-crops used to manufacture tequila require large amounts of pesticides, leading to a loss in genetic diversity and affecting the market growth during the forecast period.
Regional Insights:
Surging Demand for Tequila and Mezcal Propelling the Market in the U.S.
The U.S. is estimated to dominate the North America agave spirits market share and was valued at USD 6.05 billion in 2022. The high popularity of agave spirits, such as tequila and mezcals, among consumers has increased their demand across the North America market.
Canada is expected to have a significant growth rate in the market during the forecast period. The growth is attributed to the growing dominance of tequila in the country.
Competitive Landscape:
Key Companies Focus on Investments is Driving Market
Major companies in the market are focusing on investments in the products propelling the market growth during the forecast period. The U.S. has been a major driving factor as it is the largest consumer market across North America. Hence, the major market players are eyeing on strategic partnerships and investments into the mezcal market to gain a competitive edge across North America.
Key Industry Development:
October 2022 – French firm Pernod Ricard acquired Código 1530 tequila, a company offering prestige and ultra-premium tequila, to expand the company’s value proposition of tequila brands portfolio. Código’s range of exquisite tequilas would help Pernod Ricard to diversify its business in the U.S. market.
Browse Detailed Summary of Research Report with TOC:
https://www.fortunebusinessinsights.com/north-america-agave-spirits-market-107946