Factors Behind Explosive Growth of Mexican Alcoholic Beverages and Beers in the US


In the US, the consumption of alcohol has declined, but when Americans do indulge, they are increasingly choosing beverages from Mexico. Mexican brands have gained dominance in the US alcoholic beverages industry, particularly in the market for agave-based spirits like tequila and mezcal. Last year, tequila and mezcal surpassed American whiskey to become the second-fastest-growing spirits category in terms of revenue and volume in the US. The growth is attributed to a preference for premium-priced products with authentic stories, the willingness of consumers to spend more on higher-quality beverages, and the success of premium brands like Casamigos and Don Julio.

Tequila and mezcal are expected to become the fastest-growing spirits category in terms of volume in the US in 2023, surpassing vodka. Premium or high-end brands, produced with 100% agave and without additives, have driven the growth in this category. Celebrity-owned premium tequilas, like Casamigos, have played a significant role in popularizing Mexican spirits. The category has seen substantial growth over the years, with a 273% increase in volumes since 2003.

Mexican beer is also experiencing a boom in the U.S. Mexican beer imports to the US have increased by 10.6% in 2023, and earlier this year, Modelo Especial became the best-selling beer in the country, surpassing Bud Light. The rise of Mexican beers is attributed to marketing investments, diversification strategies targeting a wider market beyond Hispanic consumers, and the appeal of the taste of Mexican lagers.

The success of Mexican alcoholic beverages in the US is the result of authentic marketing and an emphasis on taste. Premium tequilas and authentic Mexican beers are resonating with consumers, leading to higher sales. The trend is expected to continue, with tequila and mezcal prices potentially increasing due to growing American demand and agave plant shortages. Mexican brands are also eyeing overseas markets for future growth opportunities.