Mezcal Market Size, Share, and Industry Analysis, By Age (Mezcal Joven, Mezcal Reposado, and Mezcal Anejo), By Distribution Channel (On-premise and Off-premise), and Regional Forecast, 2024-2032

The global mezcal market size was valued at USD 1,016.43 million in 2023 and is projected to grow from USD 1,121.73 million in 2024 to USD 2,546.17 million by 2032, exhibiting a CAGR of 10.79% during the forecast period. North America dominated the mezcal market with a market share of 76.74% in 2023. Moreover, the mezcal market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.58 billion by 2032, driven by increasing consumer inclination towards agave-based spirits and growing availability of premium mezcal brands across the country.

Mezcal is a traditional Mexican distilled beverage that is produced from the fermented juices of cooked agave plants. The spirit is produced majorly in the state of Oaxaca in southern Mexico from several varieties of agave, except blue agave. This market has seen the launch of several craft distilleries that deal with the production of this particular beverage. The rising preference for artisanal and craft spirits in Canada, the U.S., Japan, and Europe have further propelled the demand globally. Furthermore, the increasing demand for premium spirit products and its rising availability are expected to drive the global market growth in coming years.

The pandemic created many disruptions due to lockdowns across several countries, closure of bars, pubs, and hotels, and limits on public gatherings. The product sales from off-premises platforms boomed during the pandemic. Thus, the market experienced positive growth during this period. As per the Distilled Spirits Council of the U.S. (DISCUS) report, in 2020, the off-premises channels witnessed a sharp rise in sales and remained steady in 2021 and 2022.

Mezcal Market Trends

Innovation in Premium and Exotic Flavors to Result in Industry Expansion

The global market has been recording steady growth recently due to the rising consumption of exotic and uniquely flavored agave drinks. Agave spirits, such as mezcal have gained significant popularity as consumers are seeking unique and diverse offerings within the distilled spirits category. Artisan producers are focusing on producing the highest quality mezcal and preserving its classic traditions. For instance, in March 2023, Del Maguey Inc., a brand of Pernod Ricard, launched its newest expression named DEL MAGUEY VIDA Puebla. The new launches highlight the flavor notes of roasted agave, hints of citrus, white peach, and candied pine.

Mezcal Market Growth Factors

Growing Emphasis on Acquiring Premium Mezcal Producers by Major Players to Propel Industry Growth

The market is expanding at a healthy pace due to the growing demand for flavored and exotic agave spirits. According to the International Wines and Spirits Record Drinks Market Analysis, agave-based spirits represent one of the fastest-growing drink categories in the U.S. Younger consumers are more open to experiencing novel products, especially alcoholic beverages. In addition, the rising demand for cocktails among individuals will further push the product demand globally. The prominent players in the market are focusing on acquiring artisanal and premium producers to expand their product offerings and strengthen their market presence. For instance, in September 2023, Bacardi Limited, one of the world's largest privately held international spirits company, acquired ILEGAL Mezcal, a leading super-premium artisanal mescal producer. The acquisition would help Bacardi grow its super-premium product range at a global level.

Rising Interest in Mexican Culture Among Consumers to Fuel Market Expansion

The popularity of Mexican cuisine and culture has been expanding globally, leading to a growing fascination with traditional Mexican spirits. Consumers are drawn to the rich history, artisanal production methods, and unique flavor profile of the product. Moreover, the rising demand for premium spirits has further expanded the agave spirit industry, leading to higher sales of the product globally. The premiumization trend has provided ample opportunities for the regional players to introduce new products, thereby positively impacting market growth. For instance, in November 2022, Ilegal Mezcal unveiled its 7-Year Añejo agave spirit, which rested for seven years in the cask using 35 French oak barrels, resulting in the production of a rare agave spirit. The new drink delivers a sweet, roasted agave, and peppery flavor and has layered notes of honey, dark chocolate, and figs.

RESTRAINING FACTORS

Changes in Climatic Conditions and Loss of Genetic Diversity Restrain Industry Growth

Manufacturers are highly dependent on raw materials, especially agave plants produced in Mexico. The lower cultivation area for agave plants in Mexico can cause a raw material shortage during the production of mezcal, which will hamper market growth in the coming years.  Mezcal producers rely on high-yield raw materials and single-crop cultivation, necessitating heavy pesticide use that diminishes genetic diversity. This process generates substantial waste, particularly in disposing of vinasse, contributing to water and soil contamination and the creation of ecological dead zones. Additionally, the market faces challenges from unpredictable weather patterns such as irregular rainfall, higher temperatures, and extreme conditions that impact agave plant productivity, potentially impeding market growth.

Mezcal Market Segmentation Analysis

By Age Analysis

Joven to Become Popular Among Millennials Owing to its Freshness and Great Taste

Based on age, the market is classified into joven, reposado, and anejo. The joven segment is expected to capture a major share of the market. The global market is recording exponential growth in the consumption of mezcal due to factors such as rising interest in premium & artisanal spirits, evolving consumer preferences, and increasing popularity of mezcal-based cocktails. Joven is a type of mezcal that has not been aged, which means that the drink is fresh, and the taste of agave is still retained in the spirit. Consumers are interested in tasting the agave, which may be lost due to aging the spirit, and hence the sales of joven will increase during the forecast period.

By Distribution Channel Analysis

On-Premises Distribution Channels to Lead Market due to Their Convenience and Wide Accessibility

Based on the distribution channel, the market is split into on-premises and off-premises. The on-premises segment is expected to hold a significant market share. The on-premises channels include bars, pubs, and restaurants. Consumers opt for such channels due to the growing desire for a more social and interactive experience and the convenience of consuming drinks delivered to the table. Moreover, rising disposable incomes are helping consumers spend more on leisure activities, such as dining out and drinking at bars and restaurants. This factor is also driving the demand for on-premises consumption.

The off-premises segment is expected to record a high CAGR during the forecast period. The off-premise channels include licensed establishments, such as liquor stores, online stores, and supermarkets/hypermarkets. Mezcal is becoming more readily available in off-premise channels, making it easier for consumers to purchase such drinks for home consumption. Moreover, online retailers are also offering a wide selection of drinks, making it easier for consumers to purchase mezcal from the comfort of their homes.

REGIONAL INSIGHTS

Based on region, the market has been analyzed across North America, Europe, Asia Pacific, and the rest of the world.

North America is expected to hold a significant share of the global market. The U.S. is known as the major consumer of mezcal. Its unique and smoky flavor has made it an essential spirit in the U.S. Agave spirits are perceived as being healthier than other alcohols, such as whiskey or Vodka, further propelling the market growth. According to the Distilled Spirits Council of the U.S., in 2021, the sales of agave-based spirits rose by 30.1%. Moreover, the growing availability of premium brands across North America is offering consumers more options to choose from. Manufacturers are increasingly producing higher quality mezcal, which is attracting more discerning drinkers in the region. The region is also known to be the largest producer of mezcal in the world, as most of the spirit is produced in various Mexican states. According to COMERCAM, a government entity in Mexico, Oaxaca state is the principal producer of mezcal and reflected more than 90% of production in 2020. Furthermore, the growing international demand for the drink has increased exports and created opportunities for the Mexican spirits market to grow.

Europe is expected to record a high CAGR during the forecast period. The regional market has seen a significant increase in the demand for and interest in the drink in recent years. Spain forms a major market for mezcal, where many mezcalerias or bars have been coming up in the major cities of Barcelona and Madrid. One of the significant drivers fueling the demand for this beverage in Europe is consumers’ growing preference for crafted and premium spirits. As consumers in the region are becoming more conscious about the beverages they consume, they seek out products with unique flavors and production methods. With the growing demand for crafted spirits, mezcal producers are developing premium, artisanal offerings that cater to such consumers. For instance, in August 2022, MayaJules, a mezcal brand, planned to arrive in the U.K. market. The brand has achieved gold medals at the I.S.C. awards and plans to provide artisanal and crafted mezcals in the European market.

Asia Pacific is expected to grow considerably during the forecast period owing to highly diversified consumption patterns. The product is gaining popularity in Japan, India, China, and Australia. The growing consumer preference for premium and crafted alcoholic beverages has increased the popularity of the drink, which is anticipated to propel market growth in the region. The rising disposable income in the region makes individuals more willing to explore premium and niche alcoholic beverages, such as mezcal, further fueling the market growth.

The market in the rest of the world is expected to grow at a slower pace during the forecast period. Agave spirits, such as mezcal, have become increasingly popular in Colombia, South Africa, and the U.A.E. This is due to the growing efforts of distillers and marketers to educate consumers about these unique and flavorful spirits. Growing interest in niche and high-quality spirits, such as mezcal has been growing, helping increase the demand for the product. Moreover, the growing availability of agave spirits in bars, restaurants, and liquor stores across various regions will further fuel the demand for the product.

List of Key Companies in Mezcal Market

Increasing Focus on Collaboration Strategies to Expand Market Position

The demand for mezcal has been increasing significantly over the past few years. Some of the prominent players operating in the market include Illegal Mezcal, Mezcal Vago, Diageo Plc, Pernod Ricard, and others. The key players have been focusing on collaboration and partnership strategies in order to leverage the premium segment and develop an innovative product portfolio. In June 2023, Suntory Holdings Limited, a renowned name in premium spirits globally, ventured into this industry. They established a strategic distribution partnership with the Amarás mezcal brand, aiming to bring top-tier, artisanal, and eco-conscious mezcals into the U.S. market through importation and widespread distribution. Product differentiation through new launches and innovative packaging designs can also help the company expand their market presence.

LIST OF KEY COMPANIES PROFILED:

• Ilegal Mezcal (U.S.)


• Mezcal Vago (Mexico)


• Rey Campero (Mexico)


• Wahaka Mezcal (Mexico)


• Casa Cortés (Mexico)


• Xiaman Spirits GmbH (Austria)


• Diageo Plc. (U.K.)


• Pernod Ricard (France)


• Mezcal Amarás (Mexico)


• SU Casa Mezcal (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2023 – Nosotros Tequila and Mezcal partnered with Republic National Distributing Company (RNDC) to extend and increase the volume of agave spirits and help grow the distributor's agave product portfolio.


• June 2022 - Madre Mezcal, a certified artisanal mezcal brand from Mexico, launched its new ready-to-drink canned cocktail called ‘Desert Water’. The new product comprises Madre Espadin mezcal, sparkling water, real fruit, herbs, and plants.


• October 2021 - I.Z.O. Spirits, a premium line of award-winning agave spirits brands, announced the launch of a new limited edition Mezcal Añejo Cenizo. The new product is crafted from wild agave grown on the high-altitude mesas of Durango, Mexico.


• September 2021 – Rogue One Inc. re-launched its Mezcal brand, Fervor, in the selected U.S. market. Fervor is produced by Master Mezcalero Don Zosimo Mendez. It is distilled from a mature 8-year-old Angustifolia/Espadin Agave in Santiago, Matatlán, in Oaxaca, Mexico.


• August 2021 - Diageo plc, a British multinational alcoholic beverage company, agreed to acquire artisan brand Mezcal Unión by acquiring Casa UM.

Report Coverage

The global mezcal market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market share, size, and growth rates for all possible segments. Moreover, it offers an elaborative analysis of the market’s dynamics and competitive landscape. It presents various key insights: an overview of related markets, research methodology, recent industry developments, such as mergers & acquisitions, the regulatory scenario in critical countries, and key Mezcal industry trends.

Report Scope & Segmentation