Mezcal Market Overview
Mezcal Market size in 2019 was valued at approximately USD 350 Million in 2019 and is anticipated to register a CAGR of 11.3% between 2020 and 2027. The difference between them is how they are cooked to make the beverage. Mezcal is prepared from the various types of agave, and the plants are mostly found in parts of Mexico. The agave plant-based liquor is increasing significantly and is expected to register growth in the forecast period. The sudden change of taste and preference makes the manufacturers add natural and organic products to alcohol-based drinks. Millennials largely depend on alcohol as the main factor for market growth. The large consumer base encourages manufacturers to expand their geographical presence and spread worldwide. Premiumization is one of the reasons for the good establishment of the mezcal market. People are shifting focus from tequila to Mezcal due to premium, organic, and priced products. Premium products provided by the manufacturers have led to the accumulation of newer consumers for the market growth. Consumers shifting their minds from price and concentrating on luxury is one of the important aspects of the Mezcal Market growth. The growing demand for an alcoholic beverages and shifting to a lifestyle change is exhibiting growth.
Due to pandemics, many business segments faced issues, especially the markets serving in the online and in-store mediums. The covid change harms the behavior of consumers purchasing the commodities. The mezcal market is available in-store, and in the online market, the online market increased growth wheres the in-store segment went through some losses due to shutdown and guidelines to not move outside to lessen the effect of the COVID19. The food and beverage industry was one of the most affected markets during the pandemic due to the disruption in manufacturing and raw material supply. China was the hub for manufacturing different raw materials, but the markets got affected due to the severe effect on the region. The traveling disruption affects the manufacturing industry as the business plans and collaborations are getting affected. Although with the improvement in the situation, the Market is gaining its pace and will expand in the forecast period.
Chief Factors Existing In The Market
Key Market Drivers
The increase in disposable income in different countries is turning the shift towards consuming luxurious alcohol and other beverages. The increase in the purchasing power among the consumers, the increase of millennials and the GEN Z population, and other factors act as the market's drivers. Manufacturers are acquiring different effective business strategies, leading to the Mezcal Market's increase. The consumer's awareness of the consumption of premium and organic products is also fueling the market. Several e-commerce mediums and celebrities endorsing the product also boost the Market. Consumers who prefer Mezcal compared to other tequila products increase market value. The digesting factor and the ability to control and maintain the blood sugar level and check on the cholesterol is another factor for the market's growth.
The aim to achieve fully sustainable agave by the stakeholders is one of the key challenges for the market growth. They collaborate with several producers and local farmers to improve the market value. The burning of wood for the production of Mezcal is affecting timber production, which acts as a challenging factor for further growth of the market.
The stakeholders targeting the high-end restaurants, luxurious hotels and cafes and restro-bars to boost sales form a new opportunity for the market. Millennials ' inclination towards expensive products is creating ample opportunities for the market. Promotional strategies made by the production and celebrities collaborating for the ad open up new opportunities for the market to steadily reach the targeted number of consumers.
The high price of the availability of the Mezcal is acting as a restraining factor for the market. Whereas other alcoholic drinks are not that costly compared to it. Due to the price range in hotels and bars, the bartenders combine tequila with the Mezcal, reducing the Mezcal Market Value. The increased consumption of the Mezcal is affecting the farming process of the agave as it is due to the Mezcal; the farmers are experiencing in shortage of the Mezcal. The government regulation in several countries does not allow the selling of the Mezcal that, limits the market.
Cumulative Evaluation Of The Market
the Mezcal Market shows several opportunities and development for the market. The cumulative evaluation of the market depicts the future of the market. Mezcal is an alcohol-based drink that all age range consumers acquire. The market was not affected by the pandemic that badly as the in-store availability of the Mezcal was increasing the market. The different drivers and opportunities of the Market Trends push them towards growth. The market is also facing several challenges but is coping with them by developing different strategies. The restraining factor of the Mezcal is limiting the market; however, it is expected that the market will cross all the hurdles in the upcoming period.
The Mezcal Market is segmented into product type and distribution channel.
By product type
The Mezcal Market is divided into Jovel, reposado, and Anejo based on the segment product type. In 2019, it registered the largest market share and will grow in the forecast period as the novel mezcal is available easily and is more popular than any other segment. Other segments such as reposado and Anejo have a lifespan of nine months to one year. In contrast, the Joven mezcal lifespan is maximum months, due to which it accounts highest market share in the mezcal market.
By distribution channel
The Mezcal Market is divided into store-based and non-store-based based on the distribution channel segment. The store-based further bifurcated into supermarkets and hypermarkets, specialty stores and others. The store-based segment accounts for more growth due to the availability of the Mezcal in the store-based distribution channels. Most of the Mezcal is sold by store-based retailers. According to the Market Forecast, the market will experience the required market position.
The Mezcal Market is studied in North America, Europe, Asia Pacific and other parts of the world. According to the Market Analysis, in 2018, the consumption of Mezcal increased by 28% . in 2019, the North American region held the largest market share due to the consumption of agave-based spirits in the US. The main reason North America dominates the market is the recent generation consuming authentic flavors of alcohol. Growing consumer demand for consumption of the Mezcal in Europe drives the market towards growth. In Europe, through different festivals such as tequila and mezcal fest and London mezcal week, the region got aware of the Mezcal, and the value of the mezcal market increased and is expected to grow further in the forecast period. The presence of a huge millennial population and availability of various flavored-based alcohol in the region like china and japan is anticipated to create ample opportunities for the market. The mezcal market will expand in the region of Asia pacific. South America, the middle east, and the African region are economically emerging countries to boost market growth. An increase in disposable income and demand for premium alcohol in the region increases Market Value.
Competitive Intensity Within The Industry
The key players of the Mezcal Market play an important role in the growing Market size. The market is highly competitive due to the presence in different regions and several market players affecting the growth in those regions. The small and huge market players are dominating the Market Share. The players carry out different strategies and opportunities that would positively impact the market size. Some of the major players those are accelerating the market are
Recent Market Developments
The report of the Mezcal Market covers all the necessary information. Different drivers and restraining factors are impacting the market positively and negatively. The report contains information that will increase the market value. Each segment is acting towards market growth. The segment that holds the largest CAGR is studied on the market. The market players are investing in the Mezcal Market to improve the Market Outlook. It is expected that the market will be in demand in the forecast period.
Key Industrial Segments
By product type
By distribution channel
|Market Size||USD 1136.52 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type, Distribution Channel|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Davide Campari-Milano S.P.A., Bacardi Ltd., Craft Distillers, Familia, Camarena Tequila, Brown-Forman Corporation, Diageo Plc., Pernod Ricard, William Grant & Sons Ltd, Rey Campero and El Silencio Holdings|
|Key Market Opportunities||
|Key Market Drivers||
Global mezcal market is projected to register a moderate 11.3% CAGR in the forecast period.
The massive demand for mezcal due to the growing preference for premium alcohol is the primary growth inducer of the market.
The liquid segment is expected to observe substantial demand over the review period.
The store-based segment is expected to secure the highest CAGR.
A few eminent market players operating in the global mezcal market are Davide Campari-Milano S.p.A., Bacardi Ltd., Craft Distillers, among others.