Mezcal Market

2019 Analysis and Review of Mezcal Market by Product - Mezcal Joven, Mezcal Reposado, and Mezcal Anejo for 2019 - 2027

  • 2019-12-17
  • REP-GB-5067
  • 101 Tables
  • 81 Figures
  • 169 pages
  • Format: PDF/PPT/Excel
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Mezcal Market Set for Double-digit Revenue Growth Through 2027

Being marketed as Mexico’s traditional spirit that is much more than an alcoholic drink, mezcal has been seeing a massive popularity boom over the recent past. Future Market Insights (FMI), in its recent study, reveals that the global mezcal consumption will account for revenues exceeding US$ 700 Mn by 2027 end. Research indicates a whopping 400% rise in both mezcal production and export, since the year 2011. The mezcal market has conventionally been led by various small-scale, particularly home/family owned producers. Although the market currently represents just about 2% of entire tequila industry, its double-digit growth projections have captured the attention of various market players leading the liquor sector, including Bacardi, Del Maguey, and Diageo.

Key Factors Shaping Mezcal Consumption

Premiumization Trend

The trend of consuming natural, healthy beverages is expected to increase the preference for healthier, premium products such as smoothies, cold-pressed juices, craft beers, and other products. This supports the demand for alcoholic as well as non-alcoholic products. Additionally, when it comes to alcoholic drinks, the millennial population is willing to spend more on high-end and super-premium products. The market for high-end premium spirits grew by 5-6% per year by volume from 2012 to 2017 as a result of increasing per-capita disposable income of consumers and the persisting growth of the economy.

E-commerce Expansion

With the emergence of modern retail formats, a new format for operations in the form of food courts and specialty stores in large malls has emerged. These specialty stores offer consumers easy access to popular beverages while shopping and engaging in entertainment activities, and also facilitate the choice of selection between different products by offering an immediate opportunity to compare options in the store. Online retailers, on the other hand, are offering a wide variety of products to consumers through comprehensive catalogs, which also cover international brands. Moreover, online stores offer beverages at competitive prices along with other lucrative offers or coupons, as well as equated monthly installment options. These benefits are expected to act as positive factors driving the growth of the alcoholic and non-alcoholic beverages market, subsequently drive the mezcal market over the forecast period.

global mezcal market value share

Increasing Craft Beer Consumption

The increasing consumption of craft spirits by consumers is anticipated to boost the consumption of mezcal and propel its growth over the forecast period between 2019 and 2027. The concept of craft spirits is relatively new and the trend has been followed by craft beer breweries that started nearly a decade ago. The market for craft spirits is expected to prosper over time due to the expansion of craft breweries and distilleries. Around 600+ craft distillers are operating across North America. Furthermore, this number is expected to double in the next six years.

Mezcal Market Structure Analysis

  • The global mezcal market represents a fairly combined competitive landscape, where the prominent players retain their market positions by focusing on entering into joint ventures and solid distribution partnerships with the target of establishing stronger global footprint.
    • Some of the major players in the mezcal market are Bacardi Limited., Familia Camarena Tequila, Craft Distiller, Destileria Tlacolula, Diageo Plc., Don Julio, S.A.de., EI Silencio Holdings INC, Fidencio Mezcal, Ilegal Mezcal, Sombra Mezcal, William Grant & Sons Ltd, Sauza Tequila Import Company, Rey Campero., Brown-Forman Corporation (Grupo Industrial Herradura, S.A. de C.V.)., Del Maguey Co., Pensador Mezcal, and Pierde Almas.
  • Leading manufacturers of mezcal are currently focusing on R&D and product launches. This strategy will enable manufacturers to cater to the increasing demand for innovative alcoholic beverages in APEJ, Europe, and the Middle East and Africa.
  • To strengthen their foothold in target markets, mezcal manufacturers will continue to rely on a number of strategies such as product development, mergers and acquisitions, and innovation.

Increasing awareness about the prevailing mezcal market trends and shifting preferences of consumers across various regions are factors likely to create growth opportunities for prominent players in global mezcal market.

Consumption of Mezcal Respado and Mezcal Anejo Accelerates

Bottled immediately after the distillation process, mezcal joven remains the liquor of choice owing to its relatively low price point, with its consumption prominent in developed countries. Manufacturers of this unaged mezcal will reap around US$ 600 Mn revenues by 2027 end. However, as consumers are looking for concentrated aromas and flavors, demand growth of the reposado and anejo variations will speed up in the following years.

Europe to Outpace Latin American Market by 2021

Poised for a market value of over US$ 200 Mn by 2024, North America would maintain its lead in the mezcal market. Surging growth of craft distilleries in the U.S. remains critical in shaping this regional market. Latin America is also reflecting lucrative growth potential owing to increasing cultivation of different types of in agave in Mexico and Brazil. However, there are strong indications of Europe outpacing Latin American market in 2021, attributing to the evolving cocktail culture in the EU4 and Eastern Europe.

Manufacturers Must Bank on HPP to Extend Mezcal’s Shelf Life

Leading producers are leveraging high-pressure processing (HPP) to extend the shelf life of mezcal. The technique utilizes high pressure in lieu of heat to inhibit bacterial growth. As the liquor is already bottled during the process, it does not get affected by the pressure. Regulatory bodies, such as the U.S. Food and Drug Administration (FDA), are instructing various companies to turn to HPP and other alternative processing methods in a bid to deliver safe products to consumers.

Mezcal joven remain top-selling category

Demand for mezcal anejo to accelerate

High consumption of 100% tequila

Consumption of mix tequila to pick pace

Maximum sales through HoReCa

Sales via specialty stores gather momentum

How Growth will Unfold

The sales of mezcal remain significantly concentrated in hotels, restaurants, and cafes (HoReCa), and currently contribute over 50% share in the market. This report reveals subsequent sales decline through the distribution channel in the following years due to sluggish alcohol selling at drinking establishments including, restaurants, and bars. Market players, in turn, must turn to other sales channels, such as specialty stores, and modern trade, where sales collectively account for around a third market share. In addition, they should rope in various online retailers which offer products at competitive prices in tandem with engaging coupons or offers.

Mezcal Market Assessment, by Sales Channel

* This data is only a representation. Actual data may vary and will be available in report.

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Overview

Mezcal Market Analysis 2019-2027

A recent market study published by Future Market Insights (FMI), on mezcal market offers global industry analysis for 2013-2018 & forecast for 2019-2027.This report also offers a comprehensive assessment of the prevailing market dynamics. After conducting a thorough research on the historical, as well as current growth parameters of the mezcal market, the growth prospects of the market are obtained with maximum precision.

Mezcal Market Taxonomy

The global mezcal market is segmented to cover every aspect of the market in detail and present complete market intelligence to the reader.

Product

  • Mezcal Joven
  • Mezcal Reposado
  • Mezcal Anejo

Concentrates

  • 100% Tequila
  • Mix Tequila

Sales Channel

  • HORECA
  • Speciality Stores
  • Modern Trade
  • Online Retailers
  • Other Sales Channels

Region

  • North America
  • Latin America
  • Europe
  • Japan
  • APEJ
  • MEA

What's Included

The report begins with the global economic outlook, which depicts the world GDP in the key countries and trade penetration of various distribution channels in these countries. The effect of these parameters on the mezcal market is analyzed.

The executive summary of the mezcal market includes the market country analysis, proprietary wheel of fortune, analysis on demand- and supply-side trends, opportunity assessment, and the recommendations on the global mezcal market.

Readers can find a detailed taxonomy and definition of the mezcal market in this chapter. It is intended to help them understand basic information about the mezcal market. This section also highlights the inclusions and exclusions, to help readers understand the scope of the mezcal market report.

Readers can find the detailed segmentation and definition of the mezcal market in this chapter. The industry assessment of the mezcal market is also carried out. This includes market trends, market dynamics, trade analysis, and supply and value chain. Consumer perceptions on mezcal are explained in the consumer survey analysis and social media sentiment analysis segments of this chapter. It also highlights price point assessment by raw material, the average price of diverse raw materials of mezcal across various regions, and offers forecasts until 2027. Factors influencing the prices of mezcal are also explained in this section.

This chapter focuses on growth trajectory of the mezcal market across various segments. Based on product type, the mezcal market is segmented into Mezcal Joven, Mezcal Reposado, and Mezcal Anejo. Based on concentrates, it is segmented into 100% Tequila and Mix Tequila. Based on sales channels, mezcal market is segmented into HORECA, specialty stores, modern trade, online retailers, and other sales channels. Based on region, the mezcal market is segmented into North America, Latin America, Europe, APEJ, Japan, and the Middle East & Africa.

This chapter includes a detailed analysis of factors affecting growth of the North America mezcal market, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find information on regional trends and regulations in countries across North America.

Readers can find detailed information on factors such as the pricing analysis and regional trends, which impact the growth of the Latin America mezcal market. This chapter also includes information on growth prospects of the mezcal market across LATAM countries such as Brazil, Mexico, Chile, Peru, Argentina, and the Rest of Latin America.

Growth exhibited by the mezcal market in countries such as Germany, the U.K, Italy, France, Spain, Russia, Poland, BENELUX, Nordic countries, and the Rest of Europe is studied in this chapter.

Greater China, India, ASEAN, Australia and New Zealand, and the Rest of APEJ are the leading countries in the APEJ market. These are also the prime subjects of assessment in this chapter. Readers can find detailed information on the factors enabling growth in the APEJ mezcal market –between 2019 and 2027.

This chapter includes a detailed analysis of the growth of the Japan mezcal market. Readers can find information on key market trends and regulations prevalent in this region.

This chapter provides information on how the mezcal market is projected to grow in major countries across the MEA. These include study across GCC Countries, South Africa, Turkey, and the Rest of MEA, during the forecast period of 2019 - 2027.

In this chapter, readers can find detailed information about tier analysis and market concentration of key players in the mezcal market along with an analysis of their market presence by region and product portfolio. A comprehensive list of all leading stakeholders in the mezcal market, along with detailed information about each company, which includes the company overview, revenue shares, strategic overview, and recent company developments are provided in this chapter. Some of the market players featured in the report are Bacardi Limited., Craft Distillers, Familia Camarena Tequila, Del Maguey Co., Destileria Tlacolula, Diageo Plc., Don Julio, S.A.de., EI Silencio Holdings INC, Fidencio Mezcal, Brown-Forman Corporation (Grupo Industrial Herradura, S.A. de C.V.), Ilegal Mezcal, Pensador Mezcal, Pernod Ricard, Sombra Mezcal, Pierde Almas, William Grant & Sons Ltd, Sauza Tequila Import Company, and Rey Campero.

This chapter includes a list of acronyms and assumptions that provide a base for the information and statistics included in the mezcal report.

This chapter is intended to help readers understand the research methodology followed to reach various conclusions, as well as important qualitative and quantitative information derived about the mezcal market.

How the research was conducted?

Primary Research

  • C - Level Executives
  • Marketing Directors
  • Sales Heads
  • Production Managers
  • Distributors Heads
  • Sales Executives
  • Product Manufacturers
  • Distributors
  • Traders 
  • Industry Experts
  • End Users
  • Current Market Dynamics and Challenges
  • Market Characteristics
  • Market Performance and Growth Quadrants
  • Competition Structure and Market Structure
  • Strategic Growth Initiatives
  • Near-term and Long-term Market Growth Prospects
  • Market Segment Splits and Authenticity
  • Opinions on Market Projections and Validity Of Assumptions

Secondary Research

  • Industry Publications
    • Industrial Week
    • Industrial Product Review
    • Industrial Magazine
  • Industry Associations
    • Trade Map
  • Company Press Releases
  • Annual Reports and Investor Presentations
  • Research Papers
  • Government Websites and Publications
    • Food and Agriculture Organization of United States (FAO)
    • United States Department of Agriculture (USDA)
  • Trade Websites

Primary Interview Splits

Primary Interview Splits mezcal market designation

Primary Interview Splits mezcal market stakeholders

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