Mezcal Market Research Report - Forecast till 2027

Mezcal Market Research Report: Information By Product Type (Joven, Reposado, Añejo), By Distribution Channel (Store-Based, Non-Store-Based) and By Region (North America, Europe, Asia-Pacific, Rest of the World) - Forecast till 2027

ID: MRFR/CR/8093-HCR | February 2021 | Region: Global | 90 pages

Mezcal Market Scenario

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 2026.  The demand for mezcal is witnessing robust growth in the last couple of years. Increasing preference for consumption of premium alcoholic drinks has been one of the major factors towards the growth of the mezcal market. Mezcal is a distilled alcoholic beverage made from the agave plant. It is a traditional Mexican alcohol beverage made from 30 different types of agave. Mezcal and Tequila, are both Mexican distilled spirits. However, unlike mezcal that can be made from 30 different types of agave, tequila can only be made from blue agave. Increasing preference among the younger population for the consumption of authentic flavors and “small-batch spirits” have been a key factor towards a surge in demand for mezcal beverage across the globe. As a result of a surge in demand for mezcal beverages, key manufacturers are leveraging the market demand by carrying out strategic mergers & acquisitions, partnerships, and joint ventures to increase their geographical presence. For instance, Bacardi Ltd., a Bermuda based independent spirit producer forayed into the mezcal category in 2017 by acquiring Ilegal Mezcal, the Guatemala based mezcal manufacturer.

Market Synopsis

Mezcal beverage in the last couple of years has witnessed widespread popularity across the globe. Millennial populations are largely inclining towards the consumption of craft beverages, which is driving the mezcal market growth. Additionally, increasing disposable income worldwide coupled with strong e-commerce channels is creating promising opportunities for mezcal manufacturers around the world. Off late, many manufacturers of mezcal beverages are using larvae (Gusano Worm & Chinicuil) in most of the mezcal to enhance the flavor of mezcal beverage. Strong investments by the big spirit players in the mezcal category are anticipated to create productive opportunities for mezcal market in the near future. Additionally, global players are focusing on strategic initiatives to increase its geographical presence. For instance, acquisition of super-premium alcohol brands Montelobos Mezcal and the Ancho Reyes liqueur by Davide Campari-Milano S.p.A. for approximately USD 35.7 Million in 2019. Montelobos Mezcal is an artisanal mezcal crafted by Mexican distiller Iván Saldaña, an expert in agave and mezcal. 

Market USP

The shift in consumer taste and preference towards consumption of premium alcoholic drink

Mezcal Market Drivers

  • Increasing preference for premium alcohol consumption: The increasing disposable income across the globe is witnessing a shift towards the consumption of premium alcohol and craft beverages. The increase is attributed owing to numerous factors such as rising purchasing power among individuals across the globe, increasing demand from the millennial population and many more. Seeing lucrative opportunities, key players are making geographical expansions, in-depth distribution channel network along with brand awareness for premium alcohol consumption.

  • Increasing disposable income

  • Effective marketing strategies by increasing consumer awareness

  • Growth of the organized retail sector

  • The emergence of e-commerce platforms

Market Restraints

  • Stringent government regulations and legalization across the globe

  • High cost associated with it due to limited production facilities

Mezcal Market Segmentation

By Product Type

  • Joven: This segment accounted for the largest market share in 2019 and is projected to be the fastest-growing during the forecast period. Joven Mezcal is more popular because of its easy availability. It is clear and aged for a maximum of two months, unlike Reposado and Anejo that are aged for a minimum of nine months and one year respectively.

  • Reposado

  • Añejo

By Distribution Channel

  • Store-Based: The majority of mezcal is sold through store-based retailers. This segment has been further divided into supermarkets & hypermarkets, specialty stores, and others. The supermarkets & hypermarkets segment dominated the market in 2019.

  • Non-Store-Based

By Region

  • North America: North America dominated the global mezcal market in 2019 owing to the rising consumption of agave-based spirits in the US. The US is a major market for mezcal in North America and is further anticipated to have the strongest growth during the forecast period. According to MRFR analysis, the US consumption of Mezcal has increased by approximately 28% in 2018. Increasing the younger American population for the consumption of authentic flavors has been a major factor behind the growth of Mezcal consumption in North America.

  • Europe: European region for the mezcal market is anticipated to have the fastest growth during the forecast period. Increasing consumer population for mezcal consumption is one of the prime factors for the growth of mezcal consumption. Additionally, increasing consumer awareness regarding mezcal beverages through consumer festivals such as London Mezcal Week and Tequila & Mezcal Fest is anticipated to create lucrative growth opportunities in the next couple of years.

  • Asia-Pacific: Asia-Pacific is a new revenue pocket for the mezcal market. The presence of a large millennial population preferring for various flavored based alcohol in China, Japan, and other South-East Asian countries is anticipated to create an opportunistic market for the existing players.

  • Rest of the World: The rest of the world includes South America and the Middle East & Africa. The region boasts some of the world’s emerging economies. Rising disposable income and along with increasing demand for premium alcohol among expatriates in these regions is expected to proliferate the demand for the mezcal market.

Mezcal Market Key Players

  • 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

  • El Silencio Holdings

Report Scope:
Report Attribute/Metric Details
  Market Size   2027: Significant Value
  CAGR   11.3% (2018-2026)
  Base Year   2017
  Forecast Period   2027
  Historical Data   2016
  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

  • Effective marketing strategies by increasing consumer awareness.
  • Growth of the organized retail sector
  •   Key Market Drivers

  • The massive demand for mezcal due to the growing preference for premium alcohol is the primary growth inducer.
  • Increasing disposable income

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    Frequently Asked Questions (FAQ) :

    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.