Asia-Pacific Mezcal Market, By Product Type (Mezcal Joven, Mezcal Reposado, Mezcal Anejo, Mezcal Espadin, Mezcal Tepztate, Mezcal Arroqueño, Mezcal Ensamble, And Others), Concentrate (100% Tequila And Mix Tequila), Price Category (Premium, Standard And Economy), ABV Content (40% And Above And Less Than 40%), Year (18-24 Years, 25-44 Years, 45-64 Years, 65+ Years), Packaging Type (Bottle, Cans, And Others), Size (251-500 Ml, 501-750 Ml, 751-1000 Ml, And More Than 100 Ml), Flavour Type (Plain/Original And Flavored), Producer Type (Microbrewery, Distillers, Brewpub, Contract Brewing Company, Regional Craft Brewery, Large Brewery, And Others), Product Category (Distillers Mezcan And Handicrafted Mezcan/Artisanal Mezcan), End User (Restaurants, Hotels And Bars, Café, Catering, Airlines, Household, And Others), Distribution Channel (Offline Trade And Online Trade) – Industry Trends and Forecast to 2029.
Asia-Pacific Mezcal Market Analysis and Size
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.
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.
Data Bridge Market Research analyses that the mezcal market is expected to reach a value of USD 316.49 million by 2029, at a CAGR of 22.7% during the forecast period. 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. The mezcal market report also covers pricing analysis, patent analysis, and technological advancements in depth.
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Report Metric
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Details
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Forecast Period
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2022 to 2029
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Base Year
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2021
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Historic Years
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2020 (Customizable to 2019-2014)
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Quantitative Units
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Revenue in USD Million, Volumes in Kilo Liters
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Segments Covered
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By Product Type (Mezcal Joven, Mezcal Reposado, Mezcal Anejo, Mezcal Espadin, Mezcal Tepztate, Mezcal Arroqueño, Mezcal Ensamble, And Others), Concentrate (100% Tequila And Mix Tequila), Price Category (Premium, Standard And Economy), ABV Content (40% And Above And Less Than 40%), Year (18-24 Years, 25-44 Years, 45-64 Years, 65+ Years), Packaging Type (Bottle, Cans, And Others), Size (251-500 Ml, 501-750 Ml, 751-1000 Ml, And More Than 100 Ml), Flavour Type (Plain/Original And Flavored), Producer Type (Microbrewery, Distillers, Brewpub, Contract Brewing Company, Regional Craft Brewery, Large Brewery, And Others), Product Category (Distillers Mezcan And Handicrafted Mezcan/Artisanal Mezcan), End User (Restaurants, Hotels And Bars, Café, Catering, Airlines, Household, And Others), Distribution Channel (Offline Trade And Online Trade)
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Countries Covered
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China, South Korea, Japan, India, Australia, Singapore, Malaysia, Indonesia, Thailand, Philippines, Rest of Asia-Pacific
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Market Players Covered
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The major companies which are dealing in the market are Brown-Forman, Diageo, Pernod Ricard, WILLIAM GRANT & SONS LTD, 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 among others.
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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. It is a type of distilled alcoholic beverage made from the cooked and fermented hearts, or piñas, of agave plants.
Mezcal Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:
- 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.
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.
- RISING TECHNOLOGICAL INNOVATIONS FOR SPIRIT PRODUCTION
The agave plant is extracted, which is used in spirit making, enriching the volatile profile of mezcal. The traditional extraction process often leads to higher solvent consumption, longer extraction times, lower yields, and poorer extraction quality. The distillation of fermented maguey is needed to produce several distilled alcoholic beverages, such as bacanora, tequila, and mezcal. Thus, technological advancements have created a chance for sustainable extract and spirit production. The manufacturers are engaged in product and technological innovations to reduce extraction and manufacturing costs. Companies can improve product traceability by using innovative technologies that can greatly enhance the effectiveness and efficiency of supply chains, particularly in industries such as food and beverage, pharmaceutical, and health care.
The fermentation process generates ethanol, higher alcohols, esters, organic acid, and others. Some of these volatile compounds are of greater importance than others due to their concentrations or aromatic characteristics; some could be specific to the agave species. Thus, the rising advanced technology for production is expected to drive the Asia-Pacific mezcal market.
- 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.
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 Asia-Pacific mezcal market.
Restraints
- HEAVY TAXATION AND DUTIES
The increased demand for alcoholic beverage products worldwide has increased imports in the growing market. But heavy taxation and customs duties are expected to restrain this market as it limits the market growth and makes the product cost expensive. This, as a result, is expected to restrict the demand for the products.
Thus, heavy taxation and excise duty automatically increase the prices of the products and makes the alcohol costlier, due to which the demand for the product decreases. This even results in customer loss which directly hampers the overall market and is expected to restrict the market's growth.
Opportunities/ Challenges
- GROWING POPULARITY OF PREMIUM AND LUXURY BEVERAGES
The ability to keep an eye on cholesterol levels and monitor blood sugar levels. The growth of the market is further fueled by the rise in disposable income and consumer spending power, both of which enhance consumer demand for a variety of goods. The demand for mezcal is rising due to the premiumization trend, encouraging the consumption of upscale alcoholic and non-alcoholic beverages. More than drinking alcohol is part of the premiumization trend. Among millennial customers, there is a developing demand for premium mezcal products. Due to the rising disposable income in developed nations like North America and Western Europe, they are willing to spend a lot of money on high-end and super-premium goods. Due to rising consumer disposable income per person and the economy's ongoing expansion, the market for high-end premium spirits increased by 5-6% annually in volume from 2019 to 2021.
The market is anticipated to expand over the forecast period as mezcal demand has grown dramatically over the last few years. The rising demand for premium mezcal is an opportunity for the growth of the Asia-Pacific mezcal market.
- 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.
Post COVID-19 Impact on Mezcal Market
The COVID-19 outbreak had a significant impact on the mezcal industry. The lockout hurt Asia-Pacific output and will make trade uncertainty and the current manufacturing slump worse. Comparatively speaking, the pandemic had little effect on the operations of the food and beverage sector, but its Asia-Pacific supply chain was badly disrupted, which prevented further growth. The consumer shift has negatively impacted consumer purchasing behavior. The sector saw both short-term and long-term effects due to the emergence of many obstacles, including the suspension of numerous operations, stunting corporate growth, and other issues. These issues had a significant impact on supply and demand. The food and beverage sector was among those affected by production and raw material supply interruptions.
Worldwide supply chains have been impeded by the shutdown of many industries, which has interrupted industrial activities, delivery schedules, and the sale of various products. A number of businesses have already warned that any delays in product deliveries could hurt future sales of their products. The trip disruption affects the industrial sector since it interferes with company planning and teamwork. Both offline and online retailers provide mezcal; the offline sector suffered significant losses due to closures and warnings against moving outside to lessen the COVID-19 effect, but the online industry has seen increased growth. Additionally, things are improving because there are fewer COVID cases worldwide, and the market is growing quickly and will continue to do so during the projection period. As a result, it is predicted that the market will expand significantly after COVID-19.
Recent Developments
- In January 2022, Diageo PLC acquired mezcal union through the acquisition of Casa UM. Mezcal Union is one of the leading brands of mezcal production. The company used this acquisition to expand its business of mezcal drinks
- In April 2021, Madre Mezcal, one of the fastest-growing mezcal brands in America, raised USD 3 million to apply the brand's successful growth strategy to new products and markets. The Series A round was led by Room 9, an NYC-based venture capital studio specializing in consumer sector investing
Asia-Pacific Mezcal Market Scope
The Asia-Pacific mezcal market is segmented on the basis of 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 Espadin
- Mezcal Joven
- Mezcal Reposado
- Mezcal Anejo
- Mezcal Ensamble
- Mezcal Arroqueño
- Mezcal Tepeztate
- Others
On the basis of product type, the Asia-Pacific mezcal market is segmented into mezcal joven, mezcal reposado, mezcal anejo, mezcal espadin, mezcal tepztate, mezcal arroqueño, mezcal ensamble and others
CONCENTRATE
- 100% Tequila
- Mix Tequila
On the basis of concentrate, the Asia-Pacific mezcal market has been segmented into 100% tequila and mix tequila.
PRICE CATEGORY
- Premium
- Standard
- Economy
On the basis of price category, the Asia-Pacific mezcal market has been segmented into premium, standard, and economy.
ABV CONTENT
- 40% and above
- Less than 40%
On the basis of ABV content, the Asia-Pacific mezcal market has been segmented into below 40% and above and less than 40%.
YEAR
- 18-24
- 25-44
- 45-64
- 65+
On the basis of year, the Asia-Pacific mezcal market has been 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 Asia-Pacific mezcal market has been segmented into bottle, cans, and others.
SIZE
- 251-500 ml
- 501-750 ml
- 751-1000 ml
- more than 100 ml
On the basis of size, the Asia-Pacific mezcal market has been segmented into 251-500 ml, 501-750 ml, 751-1000 ml, more than 100 ml
FLAVOR TYPE
- Plain/Original
- Flavored
On the basis of flavor type, the Asia-Pacific mezcal market has been segmented into plain/original and flavored.
PRODUCER TYPE
- Microbrewery
- Distillers
- Brewpub
- Contract brewing company
- Regional craft brewery
- Large brewery
- Others
On the basis of producer type, the Asia-Pacific mezcal market has been segmented into microbrewery, distillers, brewpub, contract brewing company, regional craft brewery, large brewery, and others
PRODUCT CATEGORY
- Distillers mezcan
- Handcrafted mezcan/ artisanal mezcan
On the basis of product category, the Asia-Pacific mezcal market has been segmented into distillers mezcan and handcrafted mezcan
END-USE
- Restaurants
- Hotels & bars
- Café
- Catering
- Airlines
- Household
- Others
On the basis of end user, the Asia-Pacific mezcal market has been segmented into Restaurants, Hotels & bars, Café, Catering, Airlines, Household, and Others
DISTRIBUTION CHANNEL
- Offline-trade
- Online trade
On the basis of distribution channel, the Asia-Pacific mezcal market has been segmented into offline trade and online trade.
Mezcal Market Regional Analysis/Insights
The 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, and distribution channel, as referenced above.
The countries covered in the Asia-Pacific mezcal market report are China, South Korea, Japan, India, Australia, Singapore, Malaysia, Indonesia, Thailand, Philippines, and Rest of Asia-Pacific in Asia-Pacific (APAC)
China is dominating the Asia-Pacific mezcal market with a CAGR of around 22.7%. The broad base of the beverage industry in the country is set to drive market growth.
The country section of the report also provides individual market-impacting factors and market regulation changes that impact the market's current and future trends. Data points like downstream and upstream value chain analysis, technical trends, porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Asia-Pacific brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Mezcal Market Share Analysis
The mezcal market competitive landscape provides details of the competitor. Details include company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Asia-Pacific presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points are only related to the companies focus on the mezcal market.
Some of the major players operating in the mezcal market are Davide Campari-Milano N.V., BACARDI, Craft Distillers, MADRE MEZCAL, Familia Camarena, Brown-Forman, Diageo, Pernod Ricard, WILLIAM GRANT & SONS LTD, 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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