North America Mezcal Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North American Mezcal Market is segmented by Type (Mezcal Joven, Mezcal Reposado, Mezcal Anejo, and Others), by Distribution Channel (On-Trade Channel, and Off-Trade Channel), and by Geography (United States, Canada, Mexico, and Rest of North America). The report offers market size and forecasts for the mezcal market in value (USD million) for all the above segments.

Market Snapshot

North America Mezcal Market Size
Study Period: 2016 -2027
Base Year: 2021
CAGR: 12.45 %

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Market Overview

The North American mezcal market is projected to register a CAGR of 12.45% during the forecast period (2022-2027).

With the sudden impact of COVID-19, consumers' purchasing behavior has abruptly changed, and they have become dependent on buying mezcal at retail stores and online stores. These two trends are set to continue. Covid-19 provided a massive opportunity for the online channel. Online providers have seen a significant increase in sales as consumers follow social-distancing guidelines and avoid visiting premises in person. The pandemic provided an unexpected boost in the market as consumers stockpiled the mezcal at their homes for a longer run.

The demand for mezcal, a tropical agave plant-based liquor, increased significantly over the past few years and is expected to increase the demand for mezcal in the region over the forecast period. There is a rising trend amongst wealthier consumers in established spirit markets to seek out interesting and new premium products and to trade up to drinks of a niche variety with high production value. Reposado is one of the most expensive drinks, which is majorly preferred by the young generation. The beverage can be aged six months to two years in a charred American oak barrel, which gives it an exquisite flavor and tastes compared to Joven and other drinks. The oak aging process brings out a smoky richness with caramel, creme brulee, and dusty cocoa flavors, which adds more value to the product.

However, Joven is the most preferred drink, followed by Reposado due to its similar flavor to tequila. Joven held the largest revenue share in the North American mezcal market. It is cheaper than other types as it comes unaged or aged for less than two months. The product is available in various flavors, including green apple, citrus, and white pepper.

Scope of the Report

Mezcal is a distilled alcoholic beverage made from any type of maguey. The word mezcal comes from Nahuatl Mexicali, which means "oven-cooked agave," from metl and ixcalli. The North American mezcal market includes segmentation of the market on the basis of Type, Distribution Channel, and Geography. By Type, the market is segmented under Mezcal Joven, Mezcal Reposado, Mezcal Anejo, and Others. The further segmentation is done on the basis of distribution channels, under On-Trade Channel and Off-Trade Channel. Lastly, the market is divided on the basis of geography into the United States, Canada, Mexico, and Rest of North America. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Type
Mezcal Joven
Mezcal Reposado
Mezcal Anejo
Other Product Types
By Distribution Channel
On-Trade Channel
Off-Trade Channel
Geography
United States
Canada
Mexico
Rest of North America

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Key Market Trends

Rising Popularity of Agave-based Beverages

America's region depicts significant potential for the agave-based beverages market compared to any other region. Agave-based beverages include Tequila, Mezcal, Raicilla, Bacanora, and Sotol. The key reason is the popularity of the mezcal drink for ages and suitable climatic conditions for the growth of agave fruit which is processed to produce mezcal. Agaves or magueys are found mainly in many parts of Mexico and south to the equator, though most mezcal is made in Oaxaca. Thus, Oaxaca is the key hub for mezcal production in North America. Owing to this, Mexico has also been exporting mezcal to its neighboring countries and other parts of the world. The United States was, by far, the main country destination of Mexican mezcal exports, accounting for 65% of total exports.

North America Mezcal Market Share

Growing Demand For Mezcal In Mexico

Mexico possesses a high demand for Mezcal as it has been consumed traditionally, and it's also the national spirit of Mexico. Mezcal can be produced anywhere in Mexico, although it's typically produced in the Oaxaca region. In the last decade or so, Mezcal, especially from Oaxaca, has been exported on a large scale. The exportation has increased, and government agencies have been helping smaller-scale producers obtain the equipment and techniques needed to produce higher quantities and qualities for export. This is one of the leading causes of the rise in production of Mezcal in the country. In 2020, Mexico had 313 mezcal brands destined for the export market. Because of the increasing demand for Mezcal, manufacturers are increasing their production to satisfy consumer needs.

North America Mezcal Market Growth

Competitive Landscape

The North American mezcal market is competitive, with several players engaged in manufacturing mezcal. Some of the major players in the market are Pernod Ricard, Ilegal Mezcal, Rey Campero, El Silencio Holdings Inc., Lágrimas de Dolores, Mezcal Vago, Bozal Mezcal, and others. The prominent players are focusing on innovation, development of different varieties of mezcal with improved tastes, along with qualities to attract new consumers and widen the consumer base in the region, new product launches, and investing in acquiring small players to gain the market share in the North American mezcal Market.

Recent Developments

· In 2021, Tequila distiller Agua Magica released its first mezcal, produced in Mexico’s Oaxaca region. It is a blend of two different types of agave mezcal and is designed to be consumed neat. Available in both the on- and off-premise channels in the United States.

· In 2021, Ogilvy announced that Pernod Ricard USA had selected it. Ogilvy will coordinate a brand and integrated communications strategy for each tequila and mezcal brand with a focus on translating timeless brand stories into timely creative ideas that will drive sustained growth for each of the Pernod Ricard USA brands.

· In 2020, Pernod Ricard formed a partnership with Ojo de Tigre Mezcal, the fast-growing super-premium mezcal, strengthening Pernod Ricard's position in the category and the brand's home market pursues active portfolio management under the 'Transform & Accelerate' strategic plan in the United States.

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

    2. 4.2 Market Restraints

    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 By 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 By Distribution Channel

      1. 5.2.1 On-Trade Channel

      2. 5.2.2 Off-Trade Channel

    3. 5.3 Geography

      1. 5.3.1 United States

      2. 5.3.2 Canada

      3. 5.3.3 Mexico

      4. 5.3.4 Rest of North America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Pernod Ricard

      2. 6.4.2 Ilegal Mezcal

      3. 6.4.3 Rey Campero

      4. 6.4.4 El Silencio Holdings Inc.

      5. 6.4.5 Lágrimas de Dolores

      6. 6.4.6 Mezcal Vago

      7. 6.4.7 Bozal Mezcal

      8. 6.4.8 Wahaka Mezcal

      9. 6.4.9 Craft Distillers

      10. 6.4.10 Mezcal Amores

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

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The North America Mezcal market market is studied from 2016 - 2027.

The North America Mezcal market is growing at a CAGR of 12.45% over the next 5 years.

Pernod Ricard, Ilegal Mezcal, Rey Campero, El Silencio Holdings INC., Lágrimas de Dolores are the major companies operating in North America Mezcal market.

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