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Impact Databank: Tequila Value Surpasses American Whiskey, Trails Only Vodka

October 17, 2022

For the first time ever, three Tequila brands are expected to crest the billion-dollar mark in U.S. retail sales this year: Bacardi’s Patrón and Diageo’s Don Julio and Casamigos, according to The U.S. Spirits Market: Shanken’s Impact Databank Review & Forecast, 2022 Edition. All three brands are expected to deplete more than two million cases each in the U.S. this year.

While Tequila still ranks only third among all spirits categories in the U.S. by volume, the Tequila category climbed ahead of American whiskies in dollar terms last year. The vodka segment, more than three times the size of Tequila in volume, is now only 40% larger in dollar terms. Excluding Cognac’s dominant share of the total brandy sector in the U.S., Tequila is also the only spirit whose higher-priced segments ($25 and over a 750-ml.) comprise more than half the category’s volume, according to the 269-page Impact Databank report.

In fact, Tequila’s over-$40 sector is projected to account for more than a quarter of the market in 2022, as premiumization continues across all categories of the U.S. spirits industry. Within the $25-$40 segment, strong double-digit growth is expected to continue for noteworthy labels including Proximo’s 1800 Tequila, Campari’s Espolòn and Dwayne Johnson’s Teremana. Aside from the many established upscale brands already enjoying tremendous success, Demeter & Co. is joining the fray next year, with the launch of super-premium Cierto Tequila in the second quarter of 2023.

While the pandemic disrupted Tequila shipments in 2020, 100% blue agave entries surged again last year, comprising over two-thirds of the Tequila market in the U.S. But the dynamic has also pressured long-term agave supplies, which continue to be strained. Production outages and supply chain issues related to the pandemic also persist. Overall, Proximo’s Jose Cuervo label remains the top Tequila brand by volume in the U.S. and worldwide, according to Impact Databank.

For more information regarding The 2022 U.S. Spirits Market: Impact Databank Review & Forecast, as well as other exclusive Shanken reports and publications, click here.

U.S. – Share Of Tequila Depletion Volume By Price Segment
Segment* 2010 2015 2020 2022E
Over $40 18.4 20.5 23.4 25.7
$25-$40 12.2 14.9 21.5 24.5
$15-$25 55.5 50.1 47.0 43.1
Under $15 13.9 14.5 8.1 6.7
Total Tequila 100.0% 100.0% 100.0% 100.0%
*average price per 750-ml.
Source: IMPACT DATABANK © 2022
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