Mezcal Market Business Strategies, Growth Drivers, and SWOT Analysis
The global mezcal market is subject to witness a substantial growth due to the increasing import & exports activities of mezcal across the globe. Additionally, increasing exports in regards to overall volume and revenue coupled with improved quality and self-life of the products are some of the encouraging indications for the growth of this market. Increasing production of mezcal owing to growing demand of the products from Latin America and North America region are expected to drive market growth in the upcoming years. Globally, the mezcal market is predicted to grow at CAGR of 21.99% in forecast period, providing numerous opportunities for market players to invest in research and development in the mezcal market.
Furthermore, easy availability of the products due to presence of online retailing and increasing exports are anticipated to fuel demand of mezcal over the forecast period. Rise of the e-commerce sector are expected to offer immense opportunities for businesses to increase overall revenue of their products in the upcoming years. As per recent reports, as much as twelve percent of 12% of the global retail trade is currently driven by e-commerce. Many of the e-commerce platforms focuses on both business to consumer (B2C) and business-to-business (B2B) operations. These factors are expected to positively influence market progress in the upcoming years.
However, lack of distribution challenges and limited scope of investment in the market are some of the key factors restraining market growth to a certain extent, in the recent years. Yet, increasing penetration of supermarkets, hypermarkets, retail stores, big chains of discount and convenience stores are anticipated to fill out gap in the distribution network of mezcal products, thereby driving market growth in the last couple of years. Although, serval concerns in regards to production the products like pressure regarding the declining prices and profit margins of the product are expected to limit market growth owing to lower profit margin by retail stores.
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Mezcal is commonly known as an authentic Mexican alcoholic drink that is yielded from the agave plant, also called as a maguey, which is mostly found in the North America region prominently. The mezcal beverage is made by processing agave extracts; the process commonly involves distillation and fermentation. Agave extracts are obtained after harvesting agave plats during maturity period or during production of its first single flower. Commonly, upper portion of the plants, which contains large concentrations of sugar, are processed slowly in underground pits for particular amount of period.
Increasing demand from North America region is credited to growing popularity of the drink among young population. Significant amount of mescal has been exported, especially from Oaxaca every year. Favorable governmental laws and regulations are expected to aid small and medium-sized businesses to gather more customer base in the upcoming years, these factors are predicted to positively influence market growth over the forecast period. Increasing import from U.S and Japan are anticipated to fuel overall market growth. Currently, the mezcal is sold in more than twenty-seven countries across the globe, thus driving market growth.
The mezcal market is divided by region as North America, Europe, Asia-Pacific, Latin America and Africa. North America has shown major growth in recent years owing to the rise in the adoption of latest methodologies in manufacturing process of mezcal and existence of prominent industry players in the region. Latin America is predicted to hold major market share in the mezcal market with massive growth in forecast period. Countries such as Mexico, Japan, and U.S. are leading the mezcal market with increase in the consummation and significant investment by leading industry players considering potential growth opportunities in the region.
The key players in the mezcal market are Distillery Destileria Tlacolula, S. de R.L. M.I., Ilegal Mezcal (IM), Pernod Ricard (PR) Co., Mezcal Pierde Almas, William Grant & Sons (WGS) Co., El Silencio Holdings, Inc., El Tinieblo, Fidencio Mezcal, Gem & Bolt LLC, and Heavy Métl Premium.
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