In 2022, Americans will spend more money on Tequila and mezcal than they will on US whiskey, according to new data from the IWSR.
Reports highlighted the predictions, which said that sales of agave spirits would bring in US$13.3 billion, compared to US$12.5 billion for vodka and US$12.3 billion for American whiskey.
Analysts at the IWSR also think that the agave category will have overtaken vodka, making it the most-bought spirit category in the US. This shows that the trend for Tequila and mezcal will continue to have some room to grow for some time, which could hurt other spirits categories.
Adam Rogers, director of research at IWSR, said, “Agave spirits are growing for several reasons, but the main trends affecting the category are increasing household penetration through celebrities, extending consumption occasions through ready-to-drink products, as well as new and exciting flavored products entering the market.”
Last year, agave-based spirits were the third-largest type of spirits in the US, after vodka and whiskey. But between 2015 and 2020, the demand for Tequila alone has grown by more than 30 percent, and the demand for premium brands in that category has grown by more than 60 percent.
The ultra-premium sub-category of tequila is expected to grow the most, with a CAGR in volume and value of over 14% from 2019 to 2024.
Even though sales of Tequila are going through the roof, it’s also because of the rise of mezcal, which saw a 53 percent increase in value from 2020 to 2021, while sales of Tequila only went up by 27 percent.
The trend for celebrity-backed Tequilas seems to also be helping to move the agave spirits category forward. From Dwayne “The Rock” Johnson’s Teremana Tequila to Kendall Jenner‘s 818 Tequila, many stars are trying to copy George Clooney’s success with his Casamigos brand, which he sold to Diageo in 2017.