While the tequila market continues to grow, rapid gains have stalled in the US, with volumes predicted to dip this year, according to IWSR. 

The slowdown is largely due to an increasingly crowded marketplace, the insight provider explained, with approximately 2,500 registered tequila trademarks in the country. 

Within this, however, the ultra-premium category continues to grow. Volumes in this segment increased by 7% between 2024 and 2025. 

Meanwhile, super-premium tequila is contracting in the US, with volumes down 6% over the same period and further declines expected.

Elsewhere, a host of emerging markets are gaining momentum, with India standing out as the fastest-growing destination. Although still a relatively small market compared with the US, IWSR said the category recorded 34% volume growth last year. 

Commenting on the trend, Jason Holway, senior research consultant at IWSR, said: “Tequila’s growing popularity in India has coincided with a downturn in the category’s fortunes in the US market, increasing availability.” 

Colombia was also highlighted as a market to watch, with volume growth of 26% between 2024 and 2025. Nigeria, Turkey and Japan were also identified as promising growth markets. 

The UK market 

The UK also remains a growing market for tequila, with trade data from Volza showing a 22% increase in tequila shipments between 2024 and 2025. 

According to Hacien Tequila, the category is now the UK’s fastest-growing spirit, overtaking gin for the first time, and is projected to reach a value of £1.25 billion by 2035. 

Recent new product developments in the off-trade include Aldi’s Premium Agave Strawberry Flavour Cream Liqueur, which relaunched earlier this month. 

Premium brand The Naked Margarita is also set to enter the UK market on 15 July with a RTD made using 100% agave tequila. 

Additionally, Altos Tequila recently launched its first global brand campaign in the UK, which the company said aims to broaden the appeal of tequila-based cocktails.