Beverages: Tequila adds more spirits share in the US On Premise as demand for Reposado rises
- InsightTrendsWorld
- 4 hours ago
- 9 min read
Why it is the topic trending:
Tequila's Continued Growth: The article highlights the ongoing increase in tequila sales and its expanding market share within the US on-premise (bars and restaurants) sector.
Reposado Demand: A significant driver of this growth is the rising consumer preference for Reposado tequila, indicating an evolution in tequila consumption trends.
Premiumization: The growth in sales value despite a slight volume decrease suggests a trend towards consumers choosing more premium tequila options.
Increased Distribution: The substantial rise in distribution points for tequila signifies its growing acceptance and demand within the on-premise market.
Competitive Spirit Landscape: Tequila is actively taking market share from other spirits categories, making its performance a key point of interest in the beverage industry.
Overview:
The article reports on the continuing success of tequila within US bars and restaurants, based on the latest data from CGA by NIQ's On Premise Measurement (OPM) research. Tequila's sales value increased over the past year, despite a slight drop in volume, driven by a significant expansion in distribution and a strong consumer demand for premium brands, particularly Reposado. This growth has allowed tequila to gain market share from other spirits categories, solidifying its position as a key player in the US on-premise market.
Detailed Findings:
Tequila sales by value in US bars and restaurants rose by 0.7% in the 12 months leading up to the end of February 2025.
This growth occurred despite a 1.7% decrease in overall volume sales for tequila during the same period.
The number of distribution points for tequila increased by a significant 6.7%, indicating its growing presence in on-premise venues.
Tequila now holds a 23.5% share of all on-premise spirits sales volumes, representing a year-on-year increase of 0.8 percentage points, gained at the expense of other spirits.
There is a high demand for premium tequila brands in bars and restaurants, with the premium and ultra-premium tiers adding 0.9 and 1.4 percentage points to total tequila volumes, respectively.
Reposado tequila has been a key driver of growth, gaining 2.0 percentage points of market share.
This growth in Reposado has come at the expense of Blanco and Gold Especial tequila, which lost 1.5 and 0.9 percentage points of share, respectively.
Blanco tequila remains the top-selling tequila in the US, accounting for over half of the total volume.
Reposado tequila has shown particularly strong growth in states like Florida and New York, where it has added 3.3 percentage points of market share in each.
Key Takeaway:
Tequila continues its strong growth trajectory in the US on-premise market, driven by increasing distribution, rising demand for premium options, and a significant consumer shift towards Reposado tequila. Despite a slight volume contraction, the growth in value and market share indicates tequila's robust position and its ability to attract consumers willing to spend more on quality offerings.
Main Trend:
"Tequila's Reign Continues in US On Premise"
Description of the Trend:
This trend describes the sustained and increasing popularity of tequila within the US on-premise alcohol market. After several years of significant growth, tequila is not only maintaining its strong position but actively expanding its market share, indicating a fundamental shift in consumer preferences towards this agave-based spirit in bars and restaurants across the United States.
What is Consumer Motivation:
Consumer motivation includes:
Flavor Profile Appreciation: Consumers are increasingly enjoying the diverse flavor profiles offered by different types of tequila, particularly the aged notes of Reposado.
Premiumization in Drinking: There's a broader trend of consumers opting for higher-quality and more premium alcoholic beverages when dining and drinking out.
Versatility in Cocktails: Tequila's versatility in a wide range of popular cocktails contributes to its demand.
Cultural Relevance: Tequila has gained significant cultural relevance and is often associated with celebratory and social occasions.
Exploration of Different Tequila Types: Consumers are becoming more knowledgeable about and interested in exploring the nuances between Blanco, Reposado, Añejo, and other tequila categories.
What is Driving Trend:
The trend is driven by:
Growing Consumer Awareness and Education: Increased knowledge about tequila production, categories, and quality.
Successful Marketing and Branding: Effective campaigns by tequila brands highlighting premium offerings and diverse use cases.
Influence of Bartenders and Mixologists: Bartenders are increasingly featuring tequila in innovative and classic cocktails.
Expansion of Tequila Offerings: A wider variety of high-quality tequilas are available in the market, catering to different preferences and price points.
Shifting Perceptions of Tequila: Moving beyond its traditional association with shots to being recognized as a sophisticated sipping spirit.
What is Motivation Beyond the Trend:
Beyond immediate consumption habits, this trend might reflect:
A Desire for Authentic Experiences: Consumers may perceive tequila as a more authentic and less mass-produced spirit compared to some other categories.
Cultural Exploration: Interest in Mexican culture and traditions associated with tequila production and consumption.
Description of Consumers Article is Referring To:
The article refers to consumers in the United States who purchase and consume alcoholic beverages in on-premise venues such as bars and restaurants.
Age: Not specifically detailed, but likely spans a wide range of legal drinking age adults who frequent bars and restaurants.
Gender: Not specified as a differentiating factor.
Income: Suggests a segment of consumers who are willing and able to purchase premium spirits when going out.
Lifestyle: Includes individuals who socialize in on-premise venues and are increasingly choosing tequila, particularly Reposado, as their preferred spirit.
Conclusions:
Tequila's upward trajectory in the US on-premise market continues, with rising demand for premium options and a notable shift towards Reposado, indicating a maturing and diversifying consumer base for this spirit.
Implications for Brands (Tequila Producers):
Focus on Premium Offerings: Continue to invest in and market premium and ultra-premium tequila brands to capitalize on consumer demand.
Highlight Reposado's Versatility: Educate consumers and bartenders on the diverse uses and flavor profiles of Reposado tequila.
Strengthen Distribution Networks: Ensure wide availability in on-premise venues to meet growing demand.
Emphasize Quality and Authenticity: Communicate the craftsmanship and heritage of tequila brands.
Implication for Society:
Reflects evolving tastes in beverage consumption and the increasing popularity of agave-based spirits in American culture.
Implications for Consumers:
Consumers have an expanding selection of high-quality tequilas available in bars and restaurants, allowing for more diverse and sophisticated drinking experiences.
Implication for Future:
Tequila is likely to maintain its growth momentum and could potentially continue to gain market share from other spirits in the US on-premise market. The trend towards premiumization and the increasing popularity of Reposado are expected to continue.
Consumer Trend (Name):
"The Premium Tequila Ascent"
Consumer Trend (Detailed Description):
This trend describes the increasing preference and consumption of premium and ultra-premium tequila within the US on-premise market, indicating a move towards higher-quality offerings and a greater appreciation for the nuances of different tequila categories, particularly Reposado.
Consumer Sub Trend (Name):
"Reposado's Rising Prominence"
Consumer Sub Trend (Detailed Description):
This sub-trend specifically highlights the growing demand and market share of Reposado tequila, suggesting that consumers are increasingly drawn to the aged, smoother flavor profiles of this tequila category over Blanco and Gold Especial.
Big Social Trend (Name):
"The Continued Premiumization of Alcohol Consumption"
Big Social Trend (Detailed Description):
Across various categories of alcoholic beverages, consumers are increasingly willing to spend more for higher-quality, premium options, indicating a shift towards valuing quality and experience over quantity or budget-friendly alternatives.
Worldwide Social Trend (Name):
"Global Appreciation for Agave-Based Spirits"
Worldwide Social Trend (Detailed Description):
The growing popularity of tequila in the US aligns with a broader global trend of increasing interest and consumption of agave-based spirits, including mezcal, as consumers explore diverse and artisanal alcoholic beverages.
Social Drive (Name):
"Seeking Elevated Drinking Experiences"
Social Drive (Detailed Description):
The underlying social drive is a desire among consumers for more sophisticated and enjoyable drinking experiences when they are out at bars and restaurants, leading them to choose premium spirits like tequila.
Learnings for Brands to Use in 2025:
Demand for premium tequila is strong and growing.
Reposado tequila is a key driver of growth and gaining market share.
Distribution in on-premise venues is crucial for success.
Focusing on value and quality is essential to maintain consumer loyalty.
Strategy Recommendations for Brands to Follow in 2025:
Continue to invest in and promote premium and ultra-premium tequila offerings.
Highlight the unique characteristics and versatility of Reposado tequila in marketing efforts.
Work to expand distribution in key on-premise markets, particularly in states showing strong Reposado growth.
Maintain a strong focus on both the value and quality of their tequila products to ensure customer satisfaction and loyalty.
Final Sentence (Key Concept) Describing Main Trend:
"Tequila's Reign Continues in US On Premise," fueled by "The Premium Tequila Ascent" and the rising prominence of Reposado, demonstrates the enduring and expanding appeal of agave-based spirits in the American on-premise market.
What Brands & Companies Should Do in 2025 to Benefit from Trend and How to Do It:
To benefit from the continued growth of tequila in the US on-premise market in 2025, particularly the increasing demand for premium options and Reposado, tequila brands should strategically focus on their premium and ultra-premium offerings, heavily promote the unique qualities and versatility of Reposado, and actively work to expand their distribution network in key on-premise venues across the United States. This can be achieved by:
Investing in Product Innovation and Quality: Continuously improve the quality and develop new expressions within their premium and Reposado tequila lines to cater to evolving consumer palates.
Developing Targeted Marketing Campaigns: Craft marketing strategies that highlight the craftsmanship, heritage, and unique flavor profiles of their premium and Reposado tequilas, emphasizing their suitability for both cocktails and sipping neat.
Strengthening Relationships with On-Premise Accounts: Work closely with bars and restaurants to secure prominent placement and feature their premium and Reposado tequilas in cocktail menus and promotional materials.
Educating Bartenders and Consumers: Provide training and resources to bartenders and consumers about the different types of tequila, particularly the characteristics and best uses of Reposado, to encourage exploration and appreciation.
Leveraging Regional Trends: Pay close attention to regional preferences, such as the strong growth of Reposado in Florida and New York, and tailor distribution and promotional efforts accordingly.
Final Note:
Core Trend: The Premium Tequila Ascent * Detailed Description: Consumers in the US on-premise market are increasingly choosing premium and ultra-premium tequila options, with a significant rise in the popularity of Reposado.
Core Strategy: Focus on Premiumization and Reposado Promotion * Detailed Description: Tequila brands should prioritize their premium offerings, particularly Reposado, in product development, marketing, and distribution strategies.
Core Industry Trend: The Growing Dominance of Tequila in the Spirits Market * Detailed Description: Tequila is steadily gaining market share from other spirits in the US on-premise sector, indicating a significant shift in consumer preferences.
Core Consumer Motivation: Seeking Higher Quality and More Flavorful Tequila Experiences * Detailed Description: Consumers are motivated by a desire for elevated drinking experiences when out, leading them to choose premium tequilas with more nuanced flavor profiles like those found in Reposado.
Final Conclusion:
The continued success and increasing market share of tequila in the US on-premise market, particularly the strong demand for Reposado and premium expressions, present a significant and promising landscape for tequila brands. By focusing on quality, strategic promotion, and effective distribution, brands can continue to ride this wave of popularity and solidify their position in the competitive spirits industry.
Core Trend Detailed: The Premium Tequila Ascent
Description: This core trend signifies the increasing preference and consumption of higher-quality tequila options, specifically premium and ultra-premium brands, within the US on-premise (bars and restaurants) market. This shift indicates a move away from standard or value-priced tequilas towards those perceived as having superior quality, craftsmanship, and flavor profiles. A significant component of this trend is the growing demand for aged tequilas like Reposado, which are gaining popularity over younger expressions like Blanco and Gold Especial, suggesting a more sophisticated and discerning consumer base exploring the nuances of agave-based spirits.
Key Characteristics of the Trend (summary):
Increased Demand for Premium Tiers: Consumers are choosing higher-priced tequila options.
Rise of Reposado Preference: Aged tequila is gaining market share at the expense of younger types.
Focus on Quality and Craftsmanship: Consumers are valuing the production process and heritage of tequila brands.
Growth in Sales Value Despite Volume Dip: Indicates consumers are willing to pay more for better tequila.
Increased Distribution Points: Premium tequilas are becoming more widely available in on-premise venues.
Market and Cultural Signals Supporting the Trend (summary):
CGA by NIQ Data: Shows a clear increase in sales value and market share for premium and ultra-premium tequila.
Shift in Category Share: Reposado's gain in share at the expense of Blanco and Gold Especial highlights evolving consumer preferences.
Industry Focus on Premiumization: Tequila brands are increasingly investing in and marketing their premium offerings.
Bartender Influence: Mixologists often feature higher-quality tequilas in their signature cocktails.
Consumer Education: Growing awareness and appreciation for the different categories and qualities of tequila.
How the Trend Is Changing Consumer Behavior (summary):
Willingness to Spend More: Consumers are allocating a larger portion of their on-premise alcohol budget to tequila, particularly premium options.
Experimentation with Tequila Types: More consumers are exploring aged tequilas like Reposado and appreciating their unique characteristics.
Seeking Higher-Quality Cocktails: Consumers are likely to request or order cocktails made with premium tequilas.
Potentially Sipping Tequila Neat or on the Rocks: The appreciation for quality tequila may lead to increased consumption in simpler serves.
Becoming More Informed About Tequila Brands and Production: Consumers may research and seek out specific premium tequila brands known for their quality.
Implications Across the Ecosystem (summary):
For Brands (Tequila Producers): Opportunity to focus on producing and marketing higher-margin premium and aged tequilas. Importance of educating consumers about quality and different tequila categories.
For Retailers (Bars and Restaurants): Need to stock a wider selection of premium and Reposado tequilas to meet consumer demand. Opportunity to upsell customers to higher-quality options.
For Consumers: Access to a broader range of high-quality tequilas in on-premise settings. Potential for more sophisticated and enjoyable tequila drinking experiences.
Strategic Forecast: The premium tequila ascent is expected to continue as consumers increasingly prioritize quality over quantity in their on-premise alcohol consumption. The demand for Reposado and other aged tequilas will likely grow, further driving innovation and diversification within the premium tequila market.
Final Thought: The ongoing shift towards premium tequila in US bars and restaurants signifies a maturing market where consumers are becoming more knowledgeable and are willing to invest in higher-quality agave spirits, particularly those with the nuanced flavors and aging characteristics of Reposado.
Comentarios