China Tequila Market Research Report, 2028

Tequila is primarily made from the blue agave plant, which is native to Mexico. The Chinese market has witnessed a growing interest in premium spirits and cocktails, leading to a rise in tequila consumption. Tequila has gained popularity in China primarily among young urban consumers who are more open to trying new and exotic spirits. Rising disposable incomes, westernization of drinking culture, and the influence of international trends contribute to the growing interest in tequila. Most tequila consumed in China is imported, with the majority of it originating from Mexico. Similar to other alcohol categories, there is a trend of premiumization in the tequila market. Consumers are willing to pay a premium for higher-quality tequila brands and variants. This shift towards premium products presents opportunities for both established tequila brands and emerging craft producers. Similar to other alcohol categories, there is a trend of premiumization in the tequila market. Consumers are willing to pay a premium for higher-quality tequila brands and variants. This shift towards premium products presents opportunities for both established tequila brands and emerging craft producers. China has a rich drinking culture with its own traditional spirits like baijiu. Tequila, being a Mexican spirit, brings a unique cultural experience to Chinese consumers. The exotic appeal of tequila as an imported spirit can make it stand out and attract consumers seeking a different drinking experience. China's evolving cocktail culture has brought about innovative and unique tequila-based cocktails. Mixologists and bartenders often blend traditional Chinese flavors and ingredients with tequila, creating fusion cocktails that appeal to local tastes. This creative approach adds a distinct twist to the tequila drinking experience in China. According to the research report “China Tequila Market Research Report, 2028," published by Actual Market Research, The China Tequila market is projected to reach market size of more than USD 35.49 Million by 2028. China has some unique things about the tequila market which includes Cultural Differences, Premiumization and Exclusivity, Cocktail Innovation, E-commerce Influence, Marketing and Branding Strategies, Growing Awareness and Education. In the Chinese tequila market, you can find various types of tequila, including Blanco, Reposado, Añejo. Apart from the main categories mentioned above, the Chinese tequila market may also feature specialty variations or limited editions of tequila. These can include extra añejo tequila, which is aged for more than three years, as well as flavored tequilas infused with ingredients like fruit, herbs, or spices. In the Chinese market Blanco tequila is mostly consumed, which is also known as silver or white tequila, is typically unaged or aged for a short period (up to two months). It is known for its pure and agave-forward flavor profile. Blanco tequila is often used in cocktails and shots and is popular among younger consumers who enjoy its freshness and versatility. Some brands that are known for their Blanco tequila include Jose Cuervo Especial, Patrón Silver, Don Julio Blanco, Olmeca Altos Plata, etc.

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The China tequila market can be categorized into different grades based on price and quality. These grades include Value-grade tequila refers to entry-level or more affordable options. While value tequilas are available in the Chinese market, they may not be as widely consumed as in some other spirit categories. Consumers in China who are interested in tequila often lean towards higher-quality and premium offerings. Premium-grade tequilas are increasingly popular in China. With a growing middle class and rising disposable incomes, many Chinese consumers are willing to spend more on quality products. Premium tequilas, including well-known brands with a solid reputation for craftsmanship and flavor, are sought after by consumers who appreciate finer spirits. High-end premium tequilas represent a step above the standard premium offerings in terms of quality, craftsmanship, and price. While still a relatively niche segment, high-end premium tequilas are gaining attention among discerning consumers who are willing to invest in top-tier spirits. These tequilas often showcase unique aging techniques, exceptional flavor profiles, and limited production runs. Super premium tequilas represent the highest tier of quality and exclusivity. These tequilas are crafted with meticulous attention to detail, using the finest ingredients and employing traditional production methods. Super premium tequilas are typically aged for an extended period and offer complex flavors and exceptional smoothness. During The COVID-19 pandemic, for example, has had a significant impact on the on-trade channel due to restrictions on dining out and socializing. E-commerce platforms have witnessed accelerated growth as consumers turned to online shopping during lockdowns. The China tequila market presents exciting opportunities for tequila brands to tap into a growing consumer base, premiumization trends, cocktail culture, and the digital landscape. By understanding and adapting to these key trends, tequila brands can position themselves for success in this evolving market. The distribution of tequila in the Chinese market can be categorized into two primary channels: off-trade and on-trade. These channels represent different avenues through which tequila reaches consumers in China. The off-trade channel refers to the distribution of tequila through retail outlets where consumers purchase products for consumption at home. It includes supermarkets, hypermarkets, liquor stores, convenience stores, and online platforms. Off-trade channels allow consumers to explore a wide range of tequila brands, compare prices, and make purchases at their convenience. E-commerce platforms have gained significant traction in China, providing consumers with easy access to tequila and enabling online purchases delivered to their doorstep. The on-trade channel involves the distribution of tequila to establishments where it is consumed on-site, such as bars, clubs, restaurants, hotels, and lounges. On-trade channels provide opportunities for consumers to experience tequila in a social setting, whether it's through sipping tequila, tequila-based cocktails, or other mixed drinks. The on-trade channel is crucial for building brand presence, consumer education, and creating awareness about different tequila offerings. Bars and restaurants often curate tequila lists and offer cocktail menus to cater to varying consumer preferences. Considered in this report • Geography: China • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

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Kripa Shah

Senior Analyst

Aspects covered in this report • China Tequila market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Blanco • Reposado • Anejo • Others

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By Grade • Value • Premium • High - End Premium • Super Premium By Distribution Channel • Off-Trade • On-Trade By off-trade Distribution Channel • Supermarkets and Hypermarkets • Discount Stores • Online Stores • Others By On-trade Distribution Channel • Restaurants and Bars • Liquor Stores • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us. we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Tequila industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.