Tequila, Mezcal Sales Are Growing but Mexico Tariffs May Hit Industry

The U.S. Spirits Industry Maintains Market Share Leadership, Revenues Slide

The U.S. spirits industry has maintained its market share leadership over beer and wine for a third consecutive year, despite a 1.1% decline in revenues to $37.2 billion in 2024. The data was released by the Distilled Spirits Council (DISCUS), a leading trade organization.

Market Trends

Spirits supplier sales in the U.S. rose 1.1% to a total of $37.2 billion, with volumes also increasing by 1.1%. This marks the first time revenue for the spirits category has fallen in more than two decades. The average annual growth rate since 2019 has been 5.1%, compared to 4.4% between 2003 and 2019.

Tequila and Mezcal Remain a Bright Spot

Tequila and mezcal were the only spirits category to show sales growth, with revenue increasing 2.9% to $6.7 billion. This is the first time the category has outpaced American whiskey.

Top Five Spirits Categories by Revenue in 2024

• Vodka: $7.2 billion (flat from prior year)
• Tequila/mezcal: $6.7 billion (up 2.9%)
• American whiskey: $5.2 billion (down 1.8%)
• Cordials: $2.8 billion (down 3.6%)
• Premixed cocktails including spirits RTDs: $3.3 billion (up 16.5%)

The Mexico Tariff Threat

The road ahead for Mexican spirits and beer, including tequila and mezcal, remains uncertain. The Trump administration has delayed imposing tariffs on imports from Mexico, which would include distinctive products such as mezcal and tequila, by one month while tariff negotiations continue.

Conclusion

The U.S. spirits industry has faced challenges in 2024, including a decline in revenues and the threat of tariffs on Mexican imports. However, the industry remains resilient and has maintained its market share leadership.

FAQs

Q: What was the revenue growth rate for the U.S. spirits industry in 2024?
A: 1.1%

Q: Which spirits category showed sales growth in 2024?
A: Tequila and mezcal

Q: What was the impact of the Trump administration’s tariff delay on the U.S. spirits industry?
A: The delay has added uncertainty and pressure on the industry, which is already facing higher interest rates and supply chain issues.