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Mezcal Market Product development, Demographic Strategy, Trend, Global Segments by Forecast 2027

Market Overview

Global Mezcal Market size in 2019 was valued at approximately USD 350 Million and is poised to record a CAGR of 11.3% over the review period between 2020 and 2026. 

Market Dynamics

Mezcal demand has increased significantly over the last couple of years. The growing preference for premium alcoholic beverages has been a major factor in the mezcal market’s development. Mezcal is an agave-based distilled alcoholic beverage. It is a popular Mexican alcoholic beverage made from a variety of agave varieties. Mezcal and Tequila are both distilled spirits from Mexico. Mezcal has gained widespread popularity worldwide in the last few years.

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Millennial populations are increasingly gravitating toward craft drinks, which is fuelling the mezcal market’s development. The younger generation worldwide is gravitating toward drinks with authentic Flavors. This is propelling the mezcal market forward. While mezcal is a regional beverage, globalization and commercialization have resulted in its globalization and commercialization. Additionally, rising global disposable income combined with robust e-commerce platforms is generating exciting prospects for mezcal producers worldwide. Globally, that disposable income is resulting in a trend toward premium alcohol and craft beverages consumption. The increase is due to a variety of factors, including rising buying power among individuals worldwide, the demand from the millennial generation, and others.

Unlike mezcal, which can be made from a variety of agave plants, tequila can only be made from blue agave. The growing preference of the younger generation for authentic flavors and “small-batch spirits” has contributed significantly to the global demand for mezcal beverages. The large spirit companies’ investments in the mezcal category are expected to generate lucrative prospects for the mezcal industry soon. As a result of the boom in demand for mezcal drinks, key producers are capitalizing on the opportunity through strategic mergers and acquisitions, alliances, and joint ventures to expand their regional reach.

Segmental Analysis

The market, by product type, has been segmented into joven, reposado, and anejo. In 2019, joven mezcal dominated the overall mezcal market and is expected to continue will over the forecast period. Joven is less costly than reposado and anejo. Reposado and Anejo are more costly due to their lengthy fermentation cycles.

The market has been segmented by distribution channel into store-based and non-store-based. The store-based segment is expected to rise at a faster pace than the other segments during the forecast period. A robust distribution network spanning supermarkets, hypermarkets, and specialty stores has resulted in the store-based distribution channel’s dominance.

Regional Analysis

In 2019, North America dominated the global mezcal market, owing to the US’s increasing consumption of agave-based spirits. The United States is a significant market for mezcal in North America and is expected to grow at the fastest rate during the forecast period. According to MRFR research, Mezcal consumption increased by approximately 28% in the United States in 2018. The growing desire of the younger American population for authentic Flavors has been a significant factor in the growth of Mezcal consumption in North America.

The European mezcal market is expected to rise at the fastest rate during the forecast period. The growing target population for mezcal is a major factor in the growth of mezcal consumption. Additionally, growing consumer awareness of mezcal beverages through consumer festivals such as London Mezcal Week and Tequila & Mezcal Fest is expected to build lucrative growth opportunities in the coming years.

Asia-Pacific represents a new revenue stream for the mezcal industry. The arrival of a sizable millennial population in China, Japan, and other South-East Asian countries is expected to generate an opportunistic demand for established players.

The rest of the world is comprised of South America, the Middle East, and Africa. The area is home to some of the world’s fastest growing economies. Increased disposable income and a growing demand for premium alcohol among expatriates in these regions are expected to drive demand for mezcal.

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Competitive Analysis

The notable players of the market are 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 Camper and El Silencio Holdings. The key alcohol manufacturers have witnessed a tremendous spike in mezcal consumption across the globe. This has resulted in a series of strategic partnerships through mergers and acquisitions of these small Mexican mezcal producers to commercialize mezcal beverage across the globe.

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