by
William Fountain
Why Tequila Keeps Winning in the U.S.
(When Other Spirits Are Slowing)
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Let’s talk
If you’ve been watching the U.S. spirits market, you’ve seen the headlines: overall spirits cooled in 2024.
But tequila? Still tipping up.
In fact, across the last year, agave spirits were the only major spirits category to post growth in the U.S.—a rare bright spot while others softened.
The Short Version (for busy investors)
Tequila and agave spirits are still growing, up roughly 1–2% depending on channel and timeframe.
Consumers are trading up to premium and ultra-premium labels.
Category resilience continues even as overall spirits sales slipped.
2025–2026 outlook: price normalization, stronger education, and sustained cocktail culture keep tequila front and center.
Why Tequila Keeps Growing When Others Don’t
1. The Margarita & Modern Mixology Effect
America’s favorite cocktail base still reigns supreme. Tequila sits at the crossroads of classic demand (margaritas, Palomas) and modern mixology, giving it both scale and novelty.
Even as bar sales slowed, tequila maintained positive value growth and gained share in hospitality venues.
2. Premiumization With Plenty of Headroom
Across the on-premise scene, premium and ultra-premium tequilas are taking market share from mid-range bottles.
Consumers are drinking less—but better. They’re willing to pay for craftsmanship, transparency, and authentic heritage.
3. A Category With Story, Provenance, and Ritual
Tequila has something other spirits lack: a tangible origin story. From agave fields to traditional ovens, every bottle carries heritage.
That authenticity resonates with Millennials and Gen Z who crave products with roots, process, and purpose.
It’s not a gimmick—it’s culture in a glass.
4. Distribution Flywheel: Hospitality + E-Commerce
Tequila’s footprint keeps expanding across global hospitality groups, luxury hotels, nightclubs, and online retail.
As nightlife recovered, tequila became the drink of choice for both celebration and sophistication—bridging the gap between casual drinkers and connoisseurs.
5. Normalizing Prices Don’t Mean Weak Demand
Yes, some top-shelf bottles are seeing price adjustments—but this is a healthy correction after years of explosive growth.
More accessible pricing actually opens the door for new consumers and keeps the category dynamic as it matures.
What the Numbers Are Saying
Tequila remains the only major spirits category in growth while others contract.
On-premise tequila sales show positive value growth and share gains.
Supplier revenues for tequila and mezcal rose nearly 3% year-over-year, even as total spirits dipped.
By dollar value, tequila is now the largest and fastest-growing spirits category in U.S. bars and restaurants.
Investor Takeaways: Where the Opportunity Lives
1. Premium-plus remains the engine—choose wisely.
Focus on additive-free, terroir-driven producers with authentic storytelling. Rationalized pricing can help premium brands scale.
2. On-premise partnerships matter.
Nightclubs and upscale bars multiply visibility and velocity—key growth channels for tequila portfolios.
3. Balance your exposure.
Blend on-premise, off-premise, and digital channels to capture consistent demand across seasons and events.
4. Education fuels loyalty.
Consumers who learn the difference between blanco, reposado, and añejo—and understand additive-free production—stay loyal and trade up.
5. Macro risk ≠ category risk.
Even with moderation trends or trade noise, tequila has consistently outperformed the wider spirits sector.
Brand quality, authenticity, and diversified distribution are the keys to capturing that momentum.
The Bottom Line
Even in a cooling market, tequila keeps winning.
Premiumization, provenance, and cocktail culture continue to power the category while others lag.
For investors searching for resilient consumer demand with brand depth and cultural cachet, tequila stands alone.
📈 Get the Playbook
Want the data, brand archetypes, and insights shaping the next phase of growth?
Download the Tequila 2025 Market Playbook — your inside look at where the smart money is pouring next.
“While other spirits have slowed, tequila continues to rise—driven by authenticity, premiumization, and the kind of cultural staying power investors dream of.”
William Fountain
Founder
If you’ve been watching the U.S. spirits market, you’ve seen the headlines: overall spirits cooled in 2024.
But tequila? Still tipping up.
In fact, across the last year, agave spirits were the only major spirits category to post growth in the U.S.—a rare bright spot while others softened.
The Short Version (for busy investors)
Tequila and agave spirits are still growing, up roughly 1–2% depending on channel and timeframe.
Consumers are trading up to premium and ultra-premium labels.
Category resilience continues even as overall spirits sales slipped.
2025–2026 outlook: price normalization, stronger education, and sustained cocktail culture keep tequila front and center.
Why Tequila Keeps Growing When Others Don’t
1. The Margarita & Modern Mixology Effect
America’s favorite cocktail base still reigns supreme. Tequila sits at the crossroads of classic demand (margaritas, Palomas) and modern mixology, giving it both scale and novelty.
Even as bar sales slowed, tequila maintained positive value growth and gained share in hospitality venues.
2. Premiumization With Plenty of Headroom
Across the on-premise scene, premium and ultra-premium tequilas are taking market share from mid-range bottles.
Consumers are drinking less—but better. They’re willing to pay for craftsmanship, transparency, and authentic heritage.
3. A Category With Story, Provenance, and Ritual
Tequila has something other spirits lack: a tangible origin story. From agave fields to traditional ovens, every bottle carries heritage.
That authenticity resonates with Millennials and Gen Z who crave products with roots, process, and purpose.
It’s not a gimmick—it’s culture in a glass.
4. Distribution Flywheel: Hospitality + E-Commerce
Tequila’s footprint keeps expanding across global hospitality groups, luxury hotels, nightclubs, and online retail.
As nightlife recovered, tequila became the drink of choice for both celebration and sophistication—bridging the gap between casual drinkers and connoisseurs.
5. Normalizing Prices Don’t Mean Weak Demand
Yes, some top-shelf bottles are seeing price adjustments—but this is a healthy correction after years of explosive growth.
More accessible pricing actually opens the door for new consumers and keeps the category dynamic as it matures.
What the Numbers Are Saying
Tequila remains the only major spirits category in growth while others contract.
On-premise tequila sales show positive value growth and share gains.
Supplier revenues for tequila and mezcal rose nearly 3% year-over-year, even as total spirits dipped.
By dollar value, tequila is now the largest and fastest-growing spirits category in U.S. bars and restaurants.
Investor Takeaways: Where the Opportunity Lives
1. Premium-plus remains the engine—choose wisely.
Focus on additive-free, terroir-driven producers with authentic storytelling. Rationalized pricing can help premium brands scale.
2. On-premise partnerships matter.
Nightclubs and upscale bars multiply visibility and velocity—key growth channels for tequila portfolios.
3. Balance your exposure.
Blend on-premise, off-premise, and digital channels to capture consistent demand across seasons and events.
4. Education fuels loyalty.
Consumers who learn the difference between blanco, reposado, and añejo—and understand additive-free production—stay loyal and trade up.
5. Macro risk ≠ category risk.
Even with moderation trends or trade noise, tequila has consistently outperformed the wider spirits sector.
Brand quality, authenticity, and diversified distribution are the keys to capturing that momentum.
The Bottom Line
Even in a cooling market, tequila keeps winning.
Premiumization, provenance, and cocktail culture continue to power the category while others lag.
For investors searching for resilient consumer demand with brand depth and cultural cachet, tequila stands alone.
📈 Get the Playbook
Want the data, brand archetypes, and insights shaping the next phase of growth?
Download the Tequila 2025 Market Playbook — your inside look at where the smart money is pouring next.
“While other spirits have slowed, tequila continues to rise—driven by authenticity, premiumization, and the kind of cultural staying power investors dream of.”
William Fountain
Founder