Spirits - Mexico

The Spirits market in Mexico has seen significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Mexican consumers have shown a growing preference for premium and craft spirits, as they seek unique and high-quality products. This shift in preference can be attributed to a desire for more sophisticated and refined drinking experiences. Additionally, there is a rising interest in exploring different types of spirits, such as mezcal and tequila, which are traditional Mexican beverages. Consumers are also increasingly conscious of the ingredients and production methods used in spirits, favoring those that are organic, sustainable, and locally sourced.

Trends in the market: One of the key trends in the Mexican spirits market is the rise of mezcal. Mezcal, a distilled alcoholic beverage made from the agave plant, has gained popularity both domestically and internationally. Its distinct smoky flavor and artisanal production methods appeal to consumers looking for unique and authentic experiences. This trend has led to an increase in the number of mezcalerias and bars specializing in mezcal, as well as a growing demand for premium and aged mezcal varieties. Another trend in the market is the growing popularity of cocktail culture. Mexican consumers are increasingly interested in mixology and experimenting with different flavors and ingredients. This trend has fueled the demand for spirits that can be used in cocktails, such as vodka, rum, and gin. Craft cocktails and innovative drink recipes have become a common feature in bars and restaurants across the country, catering to the evolving tastes and preferences of consumers.

Local special circumstances: Mexico's rich cultural heritage and tradition of spirits production contribute to the growth of the market. The country is known for its tequila, which is made from the blue agave plant and has gained global recognition. Tequila has become an iconic Mexican spirit, enjoyed both domestically and abroad. The production of tequila is regulated by the Mexican government, ensuring its authenticity and quality. This has helped to establish Mexico as a leading producer and exporter of tequila, driving the growth of the spirits market.

Underlying macroeconomic factors: The growth of the spirits market in Mexico is also influenced by macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an expansion of the middle class and an increase in disposable income. As a result, consumers have more purchasing power and are willing to spend on premium and higher-priced spirits. Additionally, the tourism industry in Mexico has been thriving, attracting visitors from around the world who are eager to explore the country's vibrant culture and indulge in its traditional beverages. In conclusion, the Spirits market in Mexico is experiencing growth due to changing customer preferences, emerging trends, and local special circumstances. Consumers are seeking premium and craft spirits, exploring different types of spirits, and favoring organic and sustainable options. The rise of mezcal and the growing popularity of cocktail culture are driving the demand for spirits that can be used in cocktails. Mexico's cultural heritage and tradition of spirits production, particularly tequila, contribute to the growth of the market. The country's steady economic growth and thriving tourism industry further support the expansion of the spirits market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.