France’s Tequila and mezcal market is predicted to more than double in value between 2023 and 2028, data shows.
Worth $84.04m in 2023, it could reach $186.19m by 2028, according to research by GlobalData, Just Drinks’ parent company. This represents a five-year CAGR of 17.24%.
In volume terms, growth will be slightly slower – with 2023 volumes at 1.77m litres and growth potential of 3.04m litres by 2028 – a five-year CAGR of 11.49%.
David Harris, alcoholic beverages research director at GlobalData, said West Europe was “fertile ground for the Tequila category at the moment”.
Harris said Tequila was set to see “very strong growth in pretty much all Western European markets” but highlighted that Tequila is still a small category, meaning “any gains will make its percentage year-on-year growth look massive”.
He said: “Tequila lends itself very well to current consumer trends. It takes flavors well, meeting the demand for novel and experimental alcoholic-beverages.
“It is a category with a lot of scope for premiumisation, it is fairly niche, again targeting the demand for experimental and novel products, and finally there’s a lot of depth to the category in terms of heritage, style, age and region which resonates well with Gen Z who want to learn about products.”
He added: “Tequila becoming mainstream has been predicted for several years now, on paper it is very well placed to have a breakout moment.
“It’s never quite happened (largely due to Covid), but it looks like West Europe is fertile ground for category at the moment. I do think we’ll see very strong growth for Tequila in the coming years.”
It comes as this week Casa Del Sol, the Tequila brand co-founded by actor Eva Longoria, was launched in France and its owners said they were eyeing further European expansion.
“Tequila is one of the fastest-growing spirits in Europe right now with France being one of the leading countries consuming the spirit,” a spokesperson from Casa Del Sol told Just Drinks.
“Casa Del Sol has always had a tie to France because of our unique Cognac barrel aging process” they added.
“Most Tequila brands source whiskey barrels from the United States, but we partner with Laurent Martell, the 9th generation of the Martell family in France, to source Cognac barrels handcrafted using French Limousin Oak. This authentic connection we have to the country made it an obvious first choice as we begin to expand into Europe.”
The export play comes “off the heels of our expanded focus throughout Mexico”, the spokesperson said. Next, Longoria is looking to launch in Canada and “continue our expansion in Europe”.
Meanwhile last week, celebrity-backed peer Teremana Tequila was launched in the UK off-premise via German shareholder Mast-Jägermeister.
The brand, founded by wrestler Dwayne Johnson, is also available in the US, Canada and Mexico and is set to be rolled out further in Europe.
Speaking to Just Drinks at the brand’s UK launch, Mast-Jägermeister said it was also looking to launch in other “emerging” Tequila markets, citing Germany, Columbia and South Africa. In March it also rolled the brand out in global travel retail sites including in the UK, Germany, Turkey and Australia.
