Mezcal Industry

Goals

To understand the mezcal industry, including details on U.S. volume, growth predictions, and valuation of purchased companies; to understand the wild agave industry including the state of the industry (will they be domesticated), sustainability predictions, and top consumed brand and variety; to determine the top countries and cities for mezcal sales; to determine the 10 most popular Mexican chefs in the U.S.; and to determine the 10 most popular non-musical Mexican artists in the U.S.

Early Findings

MARKET SIZE AND GROWTH

  • In 2017, the United States imported 171,731 liters of tequila and mezcal. We did not initially find a breakdown of the number of liters of mezcal only. However, tequila is actually a type of mezcal.
  • The global mezcal market is predicted to grow at a CAGR of 14.2% through 2023.
  • In the United States, the growth of mezcal in 2018 "was the equivalent of 261,000 nine-litre cases sold."

WILD AGAVE INDUSTRY

  • 12 varieties of agave are used in mezcal production.
  • Some types of agave are already being cultivated. However, there are also still wild plants including cuish, madrecuixe, tobala, mexicano, tepeztate, and, jabalí.

PROPRIETARY RESEARCH AVAILABLE

We found some proprietary research from some of our data partners which may be helpful:
  • U.S. Tequila and Mezcal Market (Global Data, $500)
  • Research section on key countries (TechNavio, $345)

Proposed next steps:

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We propose continuing the research as follows: (1) Describe what mezcal is, how it is produced, and the state of the industry (this will provide a basic understanding that will allow other reporting to make more sense); (2) Provide details on the current wild agave landscape to include details on the types grown in the wild, whether any of these have also been cultivated, and the projected sustainability of the wild varieties; (3) Who are 3 of the top players in the wild agave mezcal industry, and what varieties are most popular. For each competitor we propose providing revenue (if publicly available), wild agave varieties produced, and which varieties are most popular; (4) Provide 3-4 mezcal companies that have been sold in the last 5 years. For each, provide the sale price (if publicly available), who the purchaser was, and a brief summary of the deal; (5) As we do not believe that the countries that purchase the largest amount of mezcal is likely to be publicly available, we instead propose looking for any publicly available information on the regions where mezcal is growing in popularity. This would likely be mostly qualitative data, but quantitative data would be included when found; (6) As we do not believe that the U.S. cities that purchase the largest amount of mezcal is likely to be publicly available, we propose looking for any publicly available information on the U.S. regions where mezcal is growing in popularity. This would likely be mostly qualitative data, but quantitative data would be included when found; (7) Provide a list of the top 7-10 most popular Mexican chefs in the U.S. Popularity would be determined by followers on social media, restaurant visits, social media mentions, or some other similar metric; (8) Provide a list of the top 7-10 most popular non-musical artists in the U.S. Popularity would be determined by followers on social media, show attendance, social media mentions, or some other similar metric. (9) Since the projected growth of the industry was found, we propose identifying 2-4 of the growth drivers. For each driver we will describe it, explain how it is driving growth, and any details on companies that are taking particular advantage of the drivers. NOTE: Volume and growth are not being included as they were answered in the original research.
Alternatively, we propose producing a high level report of the state of the industry to include some growth drivers, key players, and global regions where mezcal is growing in popularity.