North America Mezcal Market – Industry Trends and Forecast to 2029

North America Mezcal Market Analysis and Size

The increasing consumer demand for the mezcal beverage, positive outlook towards advanced and smart packaging solutions, and rise in the number of production units are propelling the demand of the mezcal market in the forecast period. However, the heavy taxation and duties and stringent rules and regulations are expected to hamper the mezcal market growth in the forecast period.

The rising initiative of companies to expand their business globally will lead to the growth of the market.

Data Bridge Market Research analyses that the North America mezcal market is expected to reach the value of USD 1,583.74 million by 2029, at a CAGR of 26.0% during the forecast period.

Market Definition

Mezcal is the name given to traditional distilled alcoholic beverages made in various rural areas of Mexico, from certain northern states up to south states, which is nahuatl mexcalli "baked agave." These alcoholic beverages are made from the cooked stems of species of the genus Agave, also known as "maguey," which have fermented sugars. It is a traditional Mexican distilled beverage produced from the fermented juices of the cooked agave plant core.

The different agave species used, which have a wide variety of terpene compounds, the ability to use agave leaves in mezcal fermentation, variations in the ripening stage of agave, cooking of agave that can be done in ground holes with burning wood and heated stones that produce furans and smoky volatiles and are retained in the agave, and some herbs or other natural materials (such as worms) can all contribute to the flavor differences between mezcal.

Mazel Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers:

• AVAILABILITY OF A VARIETY OF FLAVORS IN MEZCAL

The quality and authenticity of mezcal are highly crucial because of the beverage's unique alcoholic flavor, which results from the volatile and non-volatile compounds, the direct precursors of which come from the raw agave itself. These include fatty acids, ranging from capric to lignoceric, free fatty acids, β-sitosterol, and groups of mono-, di-, and triacylglycerols, as well as fructans, the principal carbohydrate of the Agave. Due to higher temperatures and a lower pH in the agave cooking process, fructans could form Maillard compounds, such as furans, pyrans, and ketones.

Moreover, the important parameter that defines the quality of agave beverages is the distillation system used. The composition of the aroma of mezcal is extremely complex. Similarities and differences between mezcal samples can be attributed to the conditions and the raw materials used, in addition to the origin and production season.

For instance,

• A variety of agave varietals grow throughout Mexico, and each plant or maguey takes on the terroir of the microclimate in which it grows, impacting a mezcal's flavor. Thus, Mexico's most famous agave spirits are mezcal, which may be produced from any agave species, resulting in a wide array of flavor diversity. Mezcal's appellation of origin includes the states of Oaxaca, Guerrero, Zacatecas, Guanajuato, Tamaulipas, San Luis Potosí, Durango, and Michoacán
• According to spirits writer Chris Tunstall, the most common varieties of agave utilized for mezcal are tobalá, tobaziche, tepeztate, arroqueño, and espadín, which is the most common agave and accounts for up to 90% of mezcal. The two types of mezcal are made of 100% agave and are mixed with other ingredients, with about 80% agave

Due to the availability of various flavors in mezcal, consumers prefer it over other crafted spirits. Moreover, the growing interest among consumers regarding ethically sourced products and the tendency to promote beverages such as craft beer, cold-pressed juice, and smoothies with natural ingredients as premium is expected to drive the market growth in the forecast period

• POSITIVE OUTLOOK TOWARDS ADVANCED AND SMART PACKAGING SOLUTIONS

The wine packaging industry is adopting smart and sustainable solutions to make product packaging more consumer-oriented and environmentally friendly. Premiumization makes a brand or product more appealing to consumers by emphasizing its superior quality and exclusivity in the agave-based beverage category, making a brand more appealing and, therefore, more expensive. This can come from new packaging, artisanal production, higher-quality ingredients, new flavors, and social/environmental messaging.

Furthermore, digitally printed packaging offers considerable potential savings over other printing processes and low setup costs. Manufacturers can dispense with bulk orders with large print runs and stock holding. Popular brand designing companies prefer glass bottles for Mezcal packaging. The benefits of digital printing are essential for today's packaging sector. Digital printing is the ideal process for small to medium print runs and enables the creation of customized printing for packaging and displays. Moreover, most of the mezcal available online is packed in glass bottles.

For instance,

• In April 2018, TagItWine, a new wine production company, launched a new app to provide consumers with the appropriate information necessary to make an informed wine purchase, hopefully resulting in the consumer finding the perfect drink for their unique palette. To use this app, consumers must simply scan a bottle's bar code. Then the app will offer the wine's origins, including the location and sub-region of the vineyard, bottler, and distributor. The data also helps the app gather what's selling inside stores to help companies better understand their target markets

Thus, due to new product launches and developments, an increase in demand for advanced and smart packaging is expected to act as a driver for the North America mezcal market.

Opportunity

• INCREASING CUSTOMERS FOR MEZCAL PRODUCTS

The rapid increase in public awareness of the health advantages of these goods and services is largely responsible for the market's expansion. Another important reason driving the market's expansion is people's awareness of their worries about environmental issues, concerns about those issues, and the health risks associated with consuming unclean and inorganic chemicals. The market's organic products are used to address health issues.

The shifting dietary and lifestyle habits of individuals worldwide are pressuring key market players to produce the same products and develop a dependable and contented customer base over the assessment timeframe. Production is underway that is utilizing the expanding investment for availability and product releases in the worldwide market brilliantly to increase the demand for mezcal products during the assessment timeframe.

Restraints/Challenges

• RISING POPULARITY OF DRINKING HEALTHFUL, NON-ALCOHOLIC BEVERAGES

One of the most rapidly developing industries is the beverage industry, which involves making various drinks such as mezcal. The growing consumer awareness of using natural and organic components in food and drink is predicted to create a challenge in the growth rate of the mezcal industry in the future.

Many fermented foods and beverages contain ethyl carbamate (EC), a known genotoxic carcinogen. Ethyl carbamate is not only carcinogenic but also a known liver toxic agent in humans. Moreover, carbonated beverage consumption has been linked with kidney stones, all risk factors for chronic kidney disease. The increasing number of chronic liver and kidney diseases makes consumers aware of drinking healthfully. People today prefer more non-alcoholic beverages due to such health conditions.

Thus, the rise in chronic health conditions is making consumers aware of the use of non-alcoholic beverages, and this may act as a challenge to the growth of the market.

Recent Developments

• In September 2022, Pernod Ricard announced the creation of a new business unit as part of its Transform & Accelerate strategy to scale up and expand its existing direct-to-consumer and niche B2B geographically.

North America Mazel Market Scope

North America mezcal market is segmented on the basis of twelve notable segments, which are based on product type, concentrate, price category, ABV content, year, packaging type, size, flavor type, producer type, product category, end user, and distribution channel. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product Type

• Mezcal Joven
• Mezcal Reposado
• Mezcal Anejo
• Mezcal Espadin
• Mezcal Tepztate
• Mezcal Arroqueño
• Mezcal Ensamble
• Others

On the basis of product type, North America mezcal market is further segmented into mezcal joven, mezcal reposado, mezcal anejo, mezcal espadin, mezcal tepztate, mezcal arroqueño, mezcal ensamble and others.

Concentration

• 100% tequila
• Mix Tequila

On the basis of concentrate, the North America mezcal market is segmented into 100% tequila and mixed tequila.

Price Category

• Premium
• Standard
• Economy

On the basis of price category, the North America mezcal market is segmented into premium, standard, and economy.

ABV Content

• 40% and Above
• Less than 40%

On the basis of abv content, the North America mezcal market is segmented into 40% and above and less than 40%.

.Year

• 18-24 Years
• 25-44 Years
• 45-64 Years
• 65+ Years

On the basis of year, the North America mezcal market is segmented into 18-24 years, 25-44 years, 45-64 years, and 65+ years.

Packaging Type

• Bottle
• Cans
• Others

On the basis of packaging type, the North America mezcal market is segmented into bottles, cans, others.

Size

• Less than 250 Ml
• 251-500 Ml
• 501-750 Ml
• 751-1000 Ml
• more than 1000 Ml

On the basis of size, the North America mezcal market is segmented into less than 250 ml, 251-500 ml, 501-750 ml, 751-1000 ml, more than 1000 ml.

Flavour type

• Plain/Original
• Flavored

On the basis of flavour, the North America mezcal market is segmented into plain/original, flavored

Producer type

• Microbrewery
• Distillers
• Brewpub
• Contract brewing company
• Regional craft brewery
• Large brewery
• Others

On the basis of producer type, the North America mezcal market is segmented into microbreweries, distillers, brewpubs, contract brewing companies, regional craft breweries, large breweries, and others.

Product category

• Distillers Mezcan
• Handcrafted Mezcan/ Artisanal Mezcan

On the basis of product category, North America mezcal market is segmented into distiller’s mezcan and handicrafted mezcan/artisanal mezcan.

End User

• Restaurants
• Hotels & Bars
• Café
• Catering
• Airlines
• Household
• Others

On the basis of end-user, the North America mezcal market is segmented into restaurants, hotels, bars, café, catering, airlines, households, and others.

Distribution Channel

• Offline Trade
• Online Trade

On the basis of distribution channel, the North America mezcal market is segmented into offline trade, online trade.

North America Mezcal Market Regional Analysis/Insights

North America mezcal market is analyzed and market size insights and trends are provided by country, product type, concentrate, price category, ABV content, year, packaging type, size, flavor type, producer type, product category, end user, distribution channel as referenced above.

The countries covered in the North America mezcal market report is U.S., Canada, and Mexico.

The U.S.is expected to dominate the mezcal market due to the positive outlook toward advanced and smart packaging solutions

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of North America brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Mezcal Market Share Analysis

North America mezcal market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, North America presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus on the North America mezcal market.

The major companies which are dealing in the North America mezcal market are Davide Campari-Milano N.V., BACARDI, Craft Distillers, MADRE MEZCAL, Familia Camarena, Brown‑Forman, Diageo, Pernod Ricard, Rey Campero, Tequila & Mezcal Private Brands S.A. de C.V., Destilería Tlacolula, El Silencio Holdings, INC., Sauza Tequila Import Company, Dos Hombres LLC. , Del Maguey, Wahaka Mezcal., BOZAL MEZCAL Sombra , Pensador Mezcal, Ilegal Mezcal among others.

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