The tequila oversupply in Mexico is brutal

Published 2025년 1월 9일

Tridge summary

Mexico is facing a challenge with over half a billion liters of tequila due to decreased demand and potential US export tariffs. The industry, which relies heavily on the US market, has seen a decline in consumption and sales, with the Covid-19 pandemic and rising prices contributing to the shift. The Tequila Regulatory Council is working to improve the quality of the aging tequila, as it is more susceptible to evaporation due to Mexico's warm climate. Meanwhile, the industry is also contending with an oversupply of agave, leading to a significant drop in its price.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Mexico currently stores more than 500 million liters, or 714 million 0.7-liter bottles of tequila, almost the same amount as its annual production. After years of growth, the sector is now facing new challenges: a significant build-up of stocks due to falling demand and the threat of US export tariffs. Demand for tequila has grown rapidly over the past decade, especially in the US, where celebrity-endorsed brands such as George Clooney’s Casamigosa have helped the drink’s popularity explode. However, the trend has stalled in the past 18 months, as the Covid-19 pandemic’s boom in alcohol consumption has waned, while rising prices have made consumers more cautious. According to IWSR data cited by the Financial Times, US spirits sales fell 3% in the first seven months of the year compared to the same period last year, while tequila consumption fell 1.1%. This is a significant change from 4% growth in 2023 and a 17% jump in 2021, which marked the peak of tequila consumption. According ...

Source: AgroForum