Mezcal Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)

The Revenue of the Global Mezcal Market is Segmented by Type (Mezcal Joven, Mezcal Reposado, Mezcal Anejo, and Other Types); by Distribution Channel (On-Trade and Off-Trade Distribtion Channel); and by Geography (North America, Europe, and Rest of World). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

Mezcal Market Size

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Mezcal Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 12.36 %
Fastest Growing Market Europe
Largest Market North America
Market Concentration Low

Major Players

Mezcal Market

*Disclaimer: Major Players sorted in no particular order

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Mezcal Market Analysis

The Mezcal Market is expected to register a CAGR of 12.36% during the forecast period.

The demand for mezcal, a tropical agave plant-based liquor, increased significantly over the past few years and is expected to increase further over the forecast period. The increased demand for alcoholic beverages, especially among millennials, as well as the rising global consumer desire for premium/super-premium goods, are the main drivers of the mezcal market. Similarly, its popularity has risen astronomically, partly due to its increased incorporation into cocktails, which is often how American imbibers first encounter the spirit; it's used frequently as a substitute for other spirits in drinks like a smoky margarita or a mezcal mule.

Moreover, consumers worldwide prefer mezcal over other tequila products due to the availability of various flavors. Mezcal is made from 50 different varieties of agave, but only one type of agave plant (blue agave) makes tequila. Mezcal's signature smoky flavor comes from cooking the agave in pits in the ground, bringing a depth and smokiness not found in tequila. These features of mezcal are attracting more alcohol consumers who have sophisticated tastes and the desire to try out innovative flavors.

Moreover, owing to the premiumization trend, consumers have been inclined toward quality over quantity in recent years. As consumers shift toward sophistication, it triggers the demand for premium beverages like mezcal. This has led manufacturers to launch more mezcal products to address the rising demand and thus gain a larger market share. For instance, in November 2021, the United Kingdom's drinks brand Dangerous Don launched its mezcal range, Dangerous Don Espadàn, in 50 M&S stores nationwide. Furthermore, the increase in the working younger population that consumes a variety of flavors has been a major supporting factor behind the growth of the mezcal market.

Mezcal Market Trends

Increasing Demand for Premium Distilled Agave-Based Beverages

As lifestyle is changing, consumers are more focused on premium and organic products because of health consciousness. Therefore, many alcohol users prefer mezcal drinks as a substitute for other alcoholic products. The mezcal drink is made up of succulent agave plants. As agave has a lower glycemic index (GI) of 10%-15% depending upon the product, many consumers prefer agave-based mezcal due to its less sugary effects, which have raised the demand for agave-based products over the years.

Additionally, the taste and availability of various flavors in mezcal are attracting more new consumers, which is driving its sales. The taste of mezcal differs from the tequila as pinas (agave heart) are smoked for 3-4 days in large pits for manufacturing mezcal which eventually provides premium quality and a different taste to consumers, thereby providing a premium quality with better taste from the organic product.

Moreover, owing to the higher incomes, the popularity of high-end drinks among the millennial population is growing, and the growing popularity of the cocktail culture in developing nations, such as China and India, is expected to promote the off-trade sales of premium spirits like mezcal. With this surge in demand for mezcal in different nations, manufacturers focus on expanding their businesses, productions, and product portfolios to gain major market shares.

Furthermore, there is a rising trend amongst wealthier consumers, especially those in developed economies such as the United States and Canada, to seek out interesting and novel premium products and trade up to drinks of a niche variety with high production value. As a result, the demand for and volume of premium spirits has increased greatly over the past few years, especially compared to standard spirits. According to Mezcal Regulatory Council, in 2020, exports of mezcal from Mexico increased to 4.8 million liters from 3.42 million liters in 2018.

Mezcal Market1

North America is the Largest Market

Mexico is the origin of mezcal, making the North American region the largest producer in the mezcal market. This is due to the presence of countries such as Mexico and the United States, as they play a significant role in the production of mezcal. Similarly, owing to the consumer's interest in different agave-based drinks like mezcal and their inclination towards traditional and luxury drinks, the consumption of mezcal has been accounting for a significant share in the premium alcohol market of the region. For instance, according to the Distilled Spirits Council of the United States (DISCUS), in 2022, tequila/mezcal accounted for the 4th largest consumption share among distilled spirits in the United States, with almost 9.79%.

Moreover, the rise of the cocktail culture in the region, majorly in the United States, coupled with the measures taken by manufacturers to modernize the marketplace by providing spirits to consumers with greater access and more choices, is expected to support and drive the market's growth in the region. Furthermore, due to the emerging demands, the key players in the segment are accounting for significant increases in their revenues by offering various innovative flavors to consumers to meet their changing preferences.

For instance, Pernod Ricard's Del Maguey, one of the top players in the region that offers various mezcal products and the largest selling brand's net sales in 2021 saw a growth of 4.45% in sales to EUR 8.8 billion (USD 10.492 billion). Similarly, its sales grew substantially in 2022 to EUR 10.7 billion (USD 12.733 billion). With this growth, manufacturers are expected to expand their businesses and mezcal product offerings, thus boosting the market's growth in the region and throughout the globe during the forecast period.

Mezcal Market2

Mezcal Industry Overview

The global mezcal market is highly competitive, with the presence of various international and domestic players. Some of the key players in the market are Pernod Ricard, Ilegal Mezcal, Diageo PLC, Rey Campero, and El Silencio Holdings INC. Key players have been investing in acquiring small players in the mezcal market, especially to leverage the luxury spirits segment and to develop the product portfolio. They are focusing on product development and innovation to meet the consumer's needs by offering a variety in taste and product quality to maintain premiumization. Also, some major players use mergers and acquisitions as their key strategy. The leading manufacturers in the mezcal market have also been focused on leveraging opportunities posed by emerging markets in regions such as Asia-Pacific to expand their business operations.

Mezcal Market Leaders

  1. Pernod Ricard

  2. Illegal Mezcal

  3. El Silencio Holdings INC

  4. Rey Campero

  5. Diageo PLC

*Disclaimer: Major Players sorted in no particular order

Mezcal Market Concentration
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Mezcal Market News

  • March 2022: Compañia Tequilera de Arandas S.A. de C.V.'s Lobos 1707, the ultra-premium tequila and mezcal brand, announced its launch into the Canadian market. Lobos 1707 commemorated its expansion with an official launch event in Toronto.
  • January 2022: Diageo PLC acquired the premium artisanal mezcal brand Mezcal Unión by acquiring Casa UM. Mezcal Union is one of the leading brands of mezcal production. The company used this acquisition to expand its business of mezcal drinks.
  • October 2021: IZO Spirits announced a new limited edition Mezcal Añejo Cenizo that will be available in October. The product was released as a limited edition, with just 749 bottles available, and is crafted from wild agave grown on the high-altitude mesas of Durango, Mexico.

Mezcal Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

      1. 4.1.1 Increasing Trend of Consuming Cocktails

      2. 4.1.2 Rising Demand for Premium Spirits

    2. 4.2 Market Restraints

      1. 4.2.1 Affordability of the Product is Restraining the Market's Growth

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Mezcal Joven

      2. 5.1.2 Mezcal Reposado

      3. 5.1.3 Mezcal Anejo

      4. 5.1.4 Other Product Types

    2. 5.2 Distribution Channel

      1. 5.2.1 On-Trade Channel

      2. 5.2.2 Off-Trade Channel

        1. 5.2.2.1 Online Retail Stores

        2. 5.2.2.2 Offline Retail stores

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 Germany

        3. 5.3.2.3 Spain

        4. 5.3.2.4 France

        5. 5.3.2.5 Italy

        6. 5.3.2.6 Rest of Europe

      3. 5.3.3 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Strategies Adopted by Leading Players

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Pernod Ricard SA

      2. 6.3.2 Ilegal Mezcal SA

      3. 6.3.3 William Grant & Sons Ltd.

      4. 6.3.4 Rey Campero

      5. 6.3.5 Diageo PLC

      6. 6.3.6 El Silencio Holdings INC

      7. 6.3.7 Mezcal Vago

      8. 6.3.8 Lagrimas de Dolores

      9. 6.3.9 Fidencio Mezcal

      10. 6.3.10 IZO Spirits

      11. 6.3.11 Compania Tequilera de Arandas, S.A.

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Mezcal Industry Segmentation

Mezcal is a distilled alcoholic beverage made from different types of agave. The global mezcal market has been segmented by product type, distribution channel, and geography. By product type, the market is segmented as mezcal joven, mezcal reposado, mezcal anejo, and other product types of mezcal. By distribution channel, the market is segmented into on-trade channel and off-trade channel, that is further segmented into online and offline retail channels. The study also analyzes the mezcal market in emerging and established markets across the globe, including North America, Europe, and the Rest of the World. The market sizing has been done in value terms in USD for all the abovementioned segments.

Product Type
Mezcal Joven
Mezcal Reposado
Mezcal Anejo
Other Product Types
Distribution Channel
On-Trade Channel
Off-Trade Channel
Online Retail Stores
Offline Retail stores
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
United Kingdom
Germany
Spain
France
Italy
Rest of Europe
Rest of the World
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Mezcal Market Research FAQs

The Mezcal Market is projected to register a CAGR of 12.36% during the forecast period (2024-2029)

Pernod Ricard, Illegal Mezcal, El Silencio Holdings INC, Rey Campero and Diageo PLC are the major companies operating in the Mezcal Market.

Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Mezcal Market.

The report covers the Mezcal Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mezcal Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The key distribution channels for mezcal brands are a) Premium liquor stores b) Bars and restaurants c) Online retailers

Mezcal Industry Report

The global mezcal market is experiencing substantial growth, primarily driven by increasing consumer interest in artisanal and premium spirits. This market is projected to double in size within the next decade, buoyed by a robust compound annual growth rate. The escalating demand for organic and herbal hair care products, corresponding to prevalent issues like hair damage, dandruff, and graying, especially among working professionals, is a key factor in market expansion. Innovations like ayurvedic hair oils and natural ingredient-based products are gaining popularity, meeting a wide range of consumer needs and further supporting the mezcal market growth. Additionally, a shift towards e-commerce platforms is enhancing accessibility and variety for consumers, propelled by the convenience of home shopping and attractive online discounts. Regionally, India showcases significant market potential, influenced by its rich heritage in ayurvedic practices and an expanding consumer base willing to invest in superior hair care solutions. For more insights, including statistics on mezcal market share, size, and revenue growth rate, access a free report PDF download from Mordor Intelligence™.

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Mezcal Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)