Market Trends of North America Mezcal Industry
This section covers the major market trends shaping the North America Mezcal market according to our research experts:
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. In response to the rising demand for agave-based beverages, the major players in the market are expanding their reach to reach a wider demographic.
- For instance, in September 2021, Elenita, an agave-based ready-to-drink cocktail startup, expanded its territorial reach by partnering with DSDs in response to rising demand. The California-based brand has announced the addition of Arizona to its footprint with the partnership with Hensley Beverage Company.
- 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. As a result of the rising popularity of agave beverages, Mexican exports of agave spirits i.e., mezcal and tequila, have increased in recent years. According to the Distilled Spirits Council of the United States, Americans imported 26.7 million nine-liter cases of tequila and mezcal in 2021, compared with 11.9 million in 2011.
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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 is derived from agave salmiana, a native plant harvested in Central Mexico's highlands. Thus, American's growing taste in mezcal is expected to bode well for small producers across Mexico, resulting in higher export from Mexico.
- Mezcal can be produced anywhere in Mexico, although it's typically produced in the Oaxaca region (as estimated 90% right now). 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 mezcal production in the country.
- Additionally, due to its versatility in consumption, it has gained a great deal of popularity. In addition to its ability to fill in just about anywhere tequila can, mezcal also can be incorporated into drinks that involve scotch or other whiskey-based beverages. There is also evidence that the rising popularity of mezcal in the country results from the growing number of consumers that prefer mezcal over other tequila brands due to the broad spectrum of flavor possibilities offered by mezcal.
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