As super-premium Tequila volumes decline, the high-end a part of the class is predicted to soar by 2030, in response to IWSR.
The expansion of the Tequila class has slowed lately. World volumes rose by a compound annual progress charge of 6% from 2019 to 2025 however are anticipated to rise by 2% to 2030, IWSR information confirmed.
Final yr, the class’s world volumes had been up by 2%.
The US stays the biggest marketplace for Tequila, accounting for greater than two-thirds of whole quantity. Nonetheless, volumes had been flat in 2025 and are anticipated to dip barely this yr.
Extremely-premium is the one value tier rising strongly, however at a slower charge than latest years, IWSR defined. Volumes rose by 7% final yr, capping a 31% CAGR acquire since 2019.
The value tier’s share of US Tequila volumes has grown from 6% in 2019 to 17% final yr. It’s anticipated to achieve a 21% quantity CAGR rise by 2030.
Then again, super-premium Tequila is struggling. The section’s volumes fell by 6% final yr, with a 5% CAGR decline anticipated over the 5 years to 2030.
The premium tier noticed a small 1% uptick final yr as drinkers shifted to cheaper merchandise.
The class’s second-largest market, Mexico, is predicted to return to progress. In accordance with IWSR information, volumes declined at a CAGR of two% (2019-2025), however rebounded with a 3% acquire final yr. In Mexico, Tequila is forecast to develop at a 3% CAGR by way of 2030.
The class’s restoration in Mexico is led by commonplace and premium merchandise, alongside ‘robust beneficial properties’ for cristalino and premium-and-above blanco. Worth and low-priced Tequilas are dropping share, IWSR acknowledged.
Jose Luis Hermoso, analysis director for Central and South America at IWSR, believes the 2026 males’s Fifa World Cup ought to result in a “significant near-term tailwind for Tequila” in Mexico, which is likely one of the three host nations for the soccer event.
“In the meantime, a slower US Tequila market and far decrease agave costs for Tequila manufacturing will imply extra focus by model homeowners and producers on the home scene, which was uncared for previously when Tequila was booming within the US,” he added.
Subsequent huge Tequila markets: India and Colombia
IWSR has spotlighted India as a significant marketplace for Tequila. Volumes grew at a CAGR of 32% from 2019 to 2025, following comparable progress of 34% final yr. Tequila volumes in India are forecast to rise by 13% by 2030.
Jason Holway, senior analysis guide at IWSR, added: “Tequila’s rising recognition in India has coincided with a downturn within the class’s fortunes within the US market, growing availability. There might have been allocation points had the spike in India come a yr or two earlier.
“Nonetheless, native agave-based drinks of comparable high quality to imported Tequilas – and at comparable value factors – present competitors which can, given Indian shoppers’ evident pleasure within the growing high quality of native merchandise, change into extra of an element.”
IWSR has additionally known as Colombia a market to look at for Tequila, which might see a 5% quantity acquire by 2030, following a 26% rise final yr.
“The class is experiencing a surge in recognition and trendiness, mirrored in sturdy progress,” defined Jessica Ibarra, IWSR market analyst. “Volumes have doubled for the reason that pre-pandemic ranges of 2019.”
IWSR has identified a number of different noteworthy markets: Nigeria (2019-25 quantity CAGR of 48%), Türkiye (up 19% and forecast CAGR of 8% to 2030), and Japan (up 12% and forecast CAGR of seven% to 2030).
Hermoso famous: “Promising markets outdoors the US and Mexico – India, West Africa, Türkiye, Colombia, and Japan – are at very completely different levels of growth. That creates each a chance and likewise a sequencing problem for model homeowners within the months and years forward.”
Future led by worth and agave provide
IWSR believes the class’s future is being formed by the agave provide cycle and shopper behaviour, which is ‘extra value-sensitive’.
After years of extreme planting attributable to demand, IWSR predicts an agave provide glut for 2030.
“The agave provide cycle means that uncooked materials prices might ease meaningfully inside three to 5 years as present over-planting turns into prepared to reap,” stated Hermoso. “Producers who can maintain margin self-discipline by way of this era will profit from a extra beneficial enter price surroundings.”
Concerning the latter level on cost-conscious shopper behaviour, IWSR stated that is backed by the ‘onerous value ceilings seen within the US market, whereas India’s surge in ultra-premium volumes is from a tiny base towards a backdrop of availability-dependent progress’.
The most recent SipSource figures confirmed that the US$50-US$59.99 Tequila section was down by 8.9% in quantity and by 9.6% in worth within the 12 months to March 2026.
The Spirits Enterprise not too long ago questioned whether or not the decades-long development of premiumisation in spirits has ended.
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