Tequila Industry Seeks New Markets as Exports Continue to Grow

Mexico’s tequila industry continues to expand exports despite a slight decline in production, with the United States remaining its dominant market while producers pursue diversification into Europe, Latin America and Asia. The sector, led by the Tequila Regulatory Council (CRT) and supported by SADER, is also addressing agave oversupply, abandoned fields and pest risks to strengthen long-term supply chain resilience and sustain the competitiveness of one of Mexico’s leading export industries.

Mexico's tequila industry is maintaining export momentum while looking beyond the US market to sustain long-term growth. Industry leaders are also addressing structural challenges in agave production as they promote tequila's economic and cultural value. 

During the first official celebration of National Tequila Day, the Ministry of Agriculture and Rural Development (SADER) highlighted that tequila exports posted an average annual growth rate of 2.6% in export volume.

Between 2020 and 2025, tequila exports grew at an average annual rate of 8.5% in value, increasing from US$2.34 billion to US$3.51 billion. In terms of volume, Mexico exported 377.5 million L in 2023, 392.9 million L in 2024 and 397.1 million L in 2025, representing cumulative growth of 5.2% over the period and generating more than US$11.7 billion in revenue.

Global tequila exports reached 428 million L in 2024, making tequila Mexico’s second most exported alcoholic beverage after beer. The United States imported 331.3 million L in 2025, equivalent to 81.6% of the tequila produced that year, reaffirming its position as the industry's primary export market. Other major importers include Japan, the United Kingdom, Canada, Spain, Colombia, Italy, Australia, Germany and India.

During 1H26, Mexico produced 302.1 million L of tequila, 1.7% less than in the same period of 2025. Meanwhile, exports reached 214.4 million L, a 3.6% year-on-year increase, with the United States once again receiving 81.1% of total exports, according to the Tequila Regulatory Council (CRT).

The event also highlighted the tourism impact of Mexico’s Tequila Routes. The Tequila Valley Route encompasses eight municipalities and offers 139 tourism products and experiences, more than 40 hotels, 30 distilleries open to visitors and three archaeological sites. It has also been recognized by Mexico’s Ministry of Tourism as the country’s Best Designed Tourist Route.

Complementing this initiative is the Los Altos Tequila Route, inaugurated in September 2025 and comprising the municipalities of Acatic, Tepatitlán de Morelos, San Ignacio Cerro Gordo, Arandas, Jesús María, Atotonilco El Alto, Ayotlán and Tototlán. The route features 75 tourism products and experiences.

As part of the celebration, the Tequila, Gastronomy and Mariachi Fair brought together 26 distilleries offering free tastings. The program also included panel discussions and the unveiling of the National Tequila Day commemorative bottle, created from a blend of tequilas contributed by companies affiliated with the National Chamber of the Tequila Industry (CNIT). Awards were also presented to artisans from Jalisco.

Industry Prioritizes Market Diversification 

Aurelio López, President, CRT, said the new national celebration marks the beginning of a tradition recognizing the work of the entire tequila production chain, which currently includes 229 authorized producers and 3,402 registered tequila brands.

"2026 has been a year with several positive developments despite a challenging environment. The first-half results are encouraging: agave consumption has increased, exports are growing and, although production is slightly below last year's level, the industry is delivering positive results under difficult conditions," López said.

López emphasized that the industry's main challenge this year is diversifying export markets to reduce its dependence on US demand. "I believe tequila already has a strong presence in Europe, but there is still room for growth. In Latin America, Colombia has been our primary market, so we will be strengthening our relationship with Brazil," he noted

The CRT president added that the industry is also seeking opportunities in Asian markets such as India and China. "In India, we face extremely high import tariffs of more than 100%, making our product uncompetitive on price. They are protecting their domestic whisky industry, but together with the federal government we must continue working to open those markets. China also remains a challenge. There is awareness of tequila there, and the CRT even operated an office in the country, but we have yet to achieve meaningful market penetration," he acknowledged.

López added that markets such as Japan continue to show promising growth and could become increasingly attractive for tequila exports. The tequila industry recently participated in the Foodex agricultural trade show in Japan, where "T" distinctions were awarded to businesses and establishments for their commitment to promoting authentic tequila culture through professional standards. He also noted that South Korea remains a market with significant untapped potential and strong purchasing power.

Oversupply Leaves Agave Fields Abandoned 

López also said the CRT is working to address the growing problem of abandoned agave fields and the spread of pests across the five states covered by tequila’s denomination of origin. Overproduction of agave over the past five years, combined with the collapse in farmgate prices, has led many growers to abandon their plantations.

"Some agave fields are abandoned because producers believe prices are too low to justify harvesting. Those fields become infested with pests, and pests do not recognize property boundaries—they can spread from one farm or producer to another," López told EFE. He pointed that there is currently no official census quantifying the area of abandoned Blue Weber agave plantations.

He remarked that CRT will allocate additional resources to strengthen monitoring, inspections and pest containment efforts. According to the council, the 181 municipalities within tequila’s denomination of origin contain 511,492 ha planted with more than 1.704 billion agave plants, the raw material used to produce tequila.

Since 2024, overproduction has caused agave prices to fall by 92% per kilogram. While the price collapse has not affected tequila production, it has significantly impacted many farmers. López said the registration of producers under the Socially Responsible Agave (ARS) platform, which certifies good agricultural practices and traceability throughout cultivation and harvesting, has helped moderate overproduction. However, he acknowledged that the issue remains difficult to control because of the crop's historically attractive profit potential.

"Like any commodity, agave is subject to the basic forces of supply and demand. What we need to do is increase demand through higher tequila sales while improving control over agave supply. That won't happen immediately, but it is achievable over the medium and long term," he stated.