Know who deserves the credit for this decade long rise in sales of my favorite beverage on Earth? The Champs!
Americans are spending less on spirits... besides tequila
Chart R
From the rise of celebrity brands like Casamigos to its place in modern bar culture, Americans have developed a taste for tequila in recent years, with stateside sales increasing fivefold across the last two decades… but, as Trump’s tariffs loom, the Mexican spirit’s future in the US market is uncertain.
One tequila, two tequila…
According to new data out yesterday from the US Distilled Spirits Council, the spirits category overall saw its first revenue slump in more than 20 years in 2024, as sales fell 1.1% year over year to $37.2 billion in total — marking a shift away from an average annual growth rate of ~5% observed since 2003. Still, the sector kept its lead over wine and beer for a third year in a row, capturing 42.2% of the market share.
But, since a postpandemic boom saw its US revenues almost double from 2020 to $6.7 billion last year, the bright spot in the spirits category is tequila. Though vodka remains the bestselling spirit overall, the clear liquor’s sales growth has plateaued for the past three years; meanwhile, American whiskey sales were down 2% from 2023 as US consumers’ love for bourbon starts to run dry.
Marg duty
However, just as Mexican booze has become more and more popular with US consumers, the impending threat of tariffs could affect import costs and cause disruptions to supply chains — and further squeeze the pockets of agave-adoring Americans.
Comments