World Spirits Report 2025: Tequila & mezcal
The agave spirits category has continued its global momentum, rising by 1% last year by volume, according to IWSR data.
The sector has reached a stage of maturity, and is starting to see slower rates of growth, but it continues to outperform the wider alcohol sector, which is in decline. “While the category is undergoing a natural recalibration – marked by a temporary US slowdown and agave oversupply in Mexico – Tequila’s ability to outperform the wider spirits market highlights its enduring consumer appeal and growing international relevance,” says Richard Black, CEO of Teremana Tequila.
It is evident the category is starting to grow beyond its key North America market, with producers such as Casa Lumbre recognising its potential further afield. “Europe and Asia in particular are demonstrating their growing readiness to discover a broader range of agave types, expressions and innovations,” says Moises Guindi, CEO and co-founder of Casa Lumbre.
Black also notes the category “remains underdeveloped in other regions, presenting significant growth opportunities through consumer education”.
Rob Curteis, managing director of The Drinks Company, which looks after Sierra Tequila, says the UK is becoming important for Tequila as it moves away from shot culture to embracing the spirit’s versatility. “The Margarita and the Paloma are two of the most popular drinks in the UK now, and we expect 2026 to be bigger again for these two drinks.”
Acquisition activity – another indicator of a category’s health – also continues in the mezcal sector.
In February, Whyte & McKay owner Emperador took a majority stake in Los Danzantes, while El Silencio mezcal was recently acquired by Kentucky-based IJW Whiskey.
As for the forthcoming 12 months, alcohol-free agave ‘spirits’ and ready-to-drink products have been tipped as trends by Casa Lumbre, which produces the alcohol- free brand Almave.
Black believes premiumisation will remain a “key trend”, citing demand for “100% agave, small batch, and craft-forward expressions”. He also notes “lifestyle-driven experiences – from food festivals and chef-led dinners to music and arts events – will introduce the spirit to new audiences”.
Curteis adds: “Blanco will continue to drive the category growth, but RTDs and flavoured Tequilas will also continue to grow share.”
As for the year ahead, Euromonitor expects Tequila and mezcal to drop by 0.8% in volume this year and by 0.1% in 2026. Value-wise, the sector could grow by 6.2% in 2025 and by 6.1% the following year.
Brands to watch in 2026
Lalo Tequila
In a surprising move by Texan vodka giant Tito’s, Lalo Tequila became the company’s first spirits acquisition in September – bringing together two Austin-based brands. Under the deal, Lalo will gain access to Tito’s distribution muscle and strategic sales support, as it looks to scale the brand globally. Like Tito’s, Lalo focuses on one SKU – its blanco offering.
Teremana
Teremana is a brand that is only five years old yet has made a major mark in the Tequila sector, undoubtedly helped by its famous founder, actor Dwayne ‘The Rock’ Johnson. Since becoming the fastest-selling premium spirit brand in the US in 2023, Teremana has expanded production and gained the backing of Mast-Jägermeister. It is set to launch in 20 markets in the next 12 months, including Brazil, France, Indonesia, Japan, South Africa, and Spain.
Act of Treason
The Australian brand became the country’s first agave spirit when it was launched in 2024 by Top Shelf International (TSI). However, TSI entered voluntary administration this year, but was saved after merging with Australian ready-to-drink brand Gravity. Under newly formed firm Blue Sky Drinks Co, Act of Treason could storm to new heights in the next 12 months.
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