Latin American Tequila market to grow 2.62%

A new report predicts the Tequila market in Latin America will grow by a CAGR of 1.89% volume and 2.62% value from 2014-2019.

Tequila is set to grow across Latin America from 2014-2019, according to a new analyst report

According to The Tequila Market in Latin America 2015-2019, published by Research and Markets, rising exports to the key US market, along with Russia and Germany, will fuel the growth.

In addition, bolstered disposable incomes in countries including Mexico and Venezuela will drive the category, the report continues.

Counter to 2015 claims from Mexico’s National Committee for Agave Production that current agave volumes “do not provide enough for the Tequila industry”, Research and Markets states that the maturation of a significant agave plantation made in 2004 means there has been “ample” supply since 2012. This will safeguard the future growth of the global Tequila market, reckons the analyst.

Commenting on the report, a member of the research team said: “With the changing drinking habits and the growing cocktail culture, consumers require fresh flavours. Many innovative drinks are being introduced along with craft cocktails to address the appetite in the mature Mexican market.

“The penetration of cachaça and Tequila is good in Mexico and Brazil. There is a demand for more Tequilas in cocktails to diversify the drinking among consumers and increase the sales in these countries.”

Barriers to growth listed in the report include a move to non-alcoholic drinks as consumers become more health-conscious, and the competition posed by beer in Latin American markets.

With the market set to grow, don’t miss SB’s Tequila brands to watch for 2016.