• by Teresa Buyikian , August 23, 2024

Mezcal, kind of like tequila’s smokey, sophisticated cousin, has seen a sharp rise in popularity, especially among more adventurous millennials.

According to a recent report by Future Market Insights, the global mezcal market is expected to reach a valuation of $635 million by the end of 2024, and over $1.5 billion by 2034.

Tequila is mezcal, but not all mezcal is tequila (which has also seen a recent rise in popularity). The main difference is that tequila is made specifically from the Blue Weber agave plant, giving it a more universal flavor profile, whereas mezcal can be made from the core of any agave plant, which accounts for the wide variety of taste and price points of the spirit.

The report cites millennials and Gen Z’s desire for more premium alcoholic beverages, in addition to “nutrient-rich foods and beverages with a focus on flavor and quality as a result of health consciousness,” as the spirit’s sales driver. Technological improvements have made it possible for brands to produce extracts and spirits more sustainably, which also accounts for rising interest.

The premium alcoholic beverage market value is estimated to be worth $430.38 billion in US in 2024, also per Future Market Insights.

"The emergence of cocktail culture, along with producers' efforts to modernize the marketplace by giving spirits to customers with better access and more options, is likely to accelerate market growth,” said Nandini Roy Choudhury, client partner at Future Market Insights, in a release. “As demand for mezcal grows, leading companies are reporting considerable revenue growth by giving consumers a variety of unique tastes to satisfy their shifting preferences."

The wide variety and flavors of mezcal, such as grapefruit, are expected to fuel continued market growth, per the study. “Mezcal is gaining traction worldwide as more people become familiar with its distinctive taste and strong alcohol content,” per the report.

The popularity of mezcal is global; the report highlights that China's mezcal market is expected to hit 10.2% CAGR through 2034 and Germany, depending on the region, is projected to rise to 8.6% CAGR through 2034.