Tequila, Mezcal Exports Drop 10.9% in 1H24

Mexican exports of tequila, mezcal, and other distilled spirits dropped by 10.95% during 1H24. Europe experienced the largest decline in tequila exports, while there was a significant increase in purchases from Asian countries.

Between January and June 2024, Mexican producers of distilled beverages, including tequila, mezcal, sotol, raicilla, and bacanora, sold over US$2.09 billion, compared to more than US$2.3 billion during the same period last year, according to Banxico. By the end of June 2024, tequila sales in the European market had decreased by 65.51%. Exports to the region reached US$85.6 million during this period, compared to US$248.4 million reported in 2023.

Over the past six years, 141 countries have imported tequila, with European nations like Spain, the United Kingdom, and Italy showing a significant increase in their imports. Analysts believe that the pandemic boosted exports of spirits with denomination of origin. The country exported tequila and mezcal worth US$4.4 billion in 2023, according to Banxico, more than double the amount in 2019, when it exported US$1.9 billion. “With the pandemic lockdown, the consumption of tequila and mezcal increased, and then, as activities resumed, we entered this frenzy where we can go out again, with parties, trips, and celebrations,” said Maribel Quiroga, President, Wine and Spirits Industry Commission.

Another important factor in sales was the influence of celebrities like actor and director George Clooney, former basketball player Michael Jordan, and supermodel Kendall Jenner, who launched their own tequila brands. In 2023, this had a positive effect on increasing international purchases, especially in the United States, the largest buyer of the beverage worldwide. However, tequila sales to the northern neighbor decreased by 5.5% this year. In 1Q24, sales were reported at US$1.6 billion, compared to more than US$1.7 billion during the same period last year.

Mezcal was also affected by the decline in exports. Sales of the beverage dropped by 20% during 1H24, with US$67.4 million sold during this period. Additionally, other beverages that reported year-on-year losses included bacanora, a spirit from the state of Sonora, with a 100% decrease; sotol from Chihuahua with an 82.43% drop; and raicilla, a beverage distilled from a variety of agaves from the Sierra Occidental and Costa Norte regions of Jalisco, with a 29.3% decrease.

Meanwhile, tequila sales in Asia increased by 49% from January to June 2024. During the first half of the year, more than US$107.6 million of the Mexican beverage was sold, compared to US$72.2 million in 2023, as stated by Banxico. For several years now, celebrities from China, Japan, Indonesia, and India have been seeking to have tequila manufactured in Jalisco to launch their own brands, with some even wanting to invest in setting up factories to produce Mexico's iconic beverage, as reported by Forbes.

Despite the downturn in the first half of the year, tequila and mezcal remain two of the top-selling export products in the agri-food sector. In 1H24, sales of both distilled spirits accounted for US$2.09 billion, just behind beer sales, as reported by SADER.