The global market for tequila was valued at $19.76bn in 2022. By 2028, that market is expected to increase to $30bn, according to Statistica.
And brands that tap into the top tequila trends will be the ones riding that growth.
1) Premium, super-premium and ultra-premium
Perhaps the most important trend in tequila right now is the growing demand for premium, super-premium and ultra-premium tequilas.
As consumers become more knowledgeable about the category, they’re willing to trade up to higher quality versions. There're also willing to explore different types of tequila: reposado and anejo are among the varieties gaining significant traction.
Expect craft and artisanal tequilas to soar: with an increased emphasis on quality and authenticity.
High end premium tequila market growth is forecast at 8% CAGR for 2024-2031, according to Share Insights.
2) Authenticity and terroir
To be defined as tequila, the spirit must be made from blue agave and made and aged in one of five regions in Mexico: Jalisco, Guanajuato, Michoacan, Nayarit and Tamaulipas.
Now, the concept of terroir – most commonly associated with wine – is emerging in tequila. That refers to various factors – such as the location, soil, climate, temperature – of agave that can shape the characteristic in a final beverage.
Each of the different tequila regions offer different terroirs. Jalisco, for example, can be split between the highlands and lowlands: highland agave growing at higher altitudes in mineral-rich clay soil which produces a sweeter, fruiter flavor profile. Lowland agave, meanwhile, grows at lower elevations in volcanic soil: resulting in a earthier profile.
As consumers get to know the tequila category better, they’re becoming more and more inquisitive about terroir and other aspects of each tequila brand: the provenance, the production process, the story behind the brand, the craftsmanship and more.
3) Tequila tourism
Along with that desire for transparency and authenticity, there comes a rising interest in tequila tourism to see how the spirit is made first hand.
The Ruta del Tequila, for example, is a UNESCO recognized world heritage site: a route through the best of the tequila region.
In Mexico, tequila tourism has only really taken off in the past few years: with an increasing number of distilleries now seeing the opportunity of tours and tastings.
That low base just highlights the runway of growth ahead.
In the same way that US craft beer has drawn in consumers through taprooms and associated experiences such as food pairings, tequila has the same opportunity to embrace this opportunity.
4) Flavored tequila
New flavor and infusion innovations are shaking up the category.
A particularly great fit is the trend towards spicy flavors: a neat tie-up between Mexican cuisine and the Mexican spirit.
Supermodel turned entrepreneur Cindy Crawford - and Casamigos Tequila founders George Clooney, Rande Gerber and Mike Meldman – launched Casamigos Jalapeño Tequila earlier this year (pictured right).
The tequila is naturally flavored with jalapenos to create a ‘spicy yet balanced tequila with just the right level of heat’. That can translate perfectly into a spicy margarita or chilled shot.
5) Celeb power
It all started with George Clooney: who founded Casamigos in 2013 and sold it to Diageo just four years later for nearly a billion dollars.
Today, there’s a plethora of celebrity tequilas on the market: Kendall Jenner’s 818 Tequila, Dwayne ‘The Rock’ Johnson’s Teremana tequila, Eva Longoria’s Casa Del Sol Tequila, Matthew McConaughey’s Pantalones Organic Tequila – the list goes on.
There's no doubt that celebs bring plenty of glitz and glamor to the category. But a new brand pokes fun at the trend: ‘Not A Celebrity Tequila’, launched earlier this year citing a backlash against ‘seemingly endless celebrity backed brands and consumer fatigue’.
6) Agave varietals
Consumers are starting to get more interested in the different agave varietals available.
That opens doors for neighboring agave categories such as mezcal (while tequila can only be made from blue weber agave, mezcal can be made from any agave).
And that also could create opportunities for agave well beyond the Mexican traditions. In Australia, for example, the Australian Agave Project is creating a ‘one-of-a-kind, sustainably-produced Australian agave spirit category’ as it grows the plant on The Whitsundays Islands (the climate mirrors that of Mexico’s Jalisco state: placed 20° south of the equator; compared to Jalisco’s 20° north).
And there's plenty of locations in the US and South Africa that hold the same potential.
7) Sustainability
Consumers are demanding that brands do their upmost to act sustainably. Brands are listening to that call. But what does that mean when it comes to tequila?
The rapid growth of the industry unfortunately means shortcuts may be taken, and consumers are not yet aware of the impact of their drinks choices. But that will only change as they become more invested in the category.
Certification – such as the Environmentally Responsible Agave Certification from the Tequila Regulatory Council and the Government of the State of Jalisco – can help brands prove they’ve met high sustainability criteria.
8) Cocktails and RTDs
Tequila is a delight for bartenders: already an integral ingredient for classics like margaritas and palomas. But tequila can also offer a new twist to other cocktails: with the agave bringing new depth and life to the drinks and delighting consumers with a new experience.
Meanwhile, mix the tequila trend with the RTD alcohol trend and you have a winner. While RTD alcohol has often used vodka or neutral spirits, brands are now drawing on tequila.
The big launches of the summer come from the hard seltzer pioneers: White Claw with White Claw Tequila Smash and Truly Hard Seltzer with Truly Tequila Soda.
9) Cask finished tequila
Cask finished spirits move the liquid from one barrel to another at the end of the process, to impart a unique flavor to the spirit. That opens the opportunity for variety tequila flavors, or to impart tequila notes to other spirits or vice versa.
That opens up a new world of flavors and experiences for consumers.
10) Low and no alternatives
As with other alcohol categories, low and no alcohol alternatives are emerging to help tap into consumer trends of moderation. Younger consumers are more interested in trying alcohol-free alternatives than older generations, and they’re also the ones most interested in tequila.
Brands are responding to this opportunity. Take, for example, F1 sensation Lewis Hamilton’s Almave: an alcohol-free alternative to tequila (pictured right).
Much like tequila, the liquid is distilled from real agave in the Jalisco region of Mexico and created using an entirely new process based on age-old Mexican traditions.
Meanwhile, La Planta Reposado Tequila Alternative has just launched in the US as an ultra-premium, non-alcoholic agave spirit under the new Phil & Goode marque.
In low alcohol, Quarter Proof’s Blanco Agave Spirit is made with agave and an innovative distillation technique to create a 15% ABV spirit. And Punta Santos comes in at 28% ABV.