Over a year ago now, COVID-19 shook the globe and left lasting impressions on people’s personal lives and businesses. Unfortunately, many businesses were forced to close shop due to restrictions put in place. It was a difficult year for many entrepreneurs, and few were immune to the big changes. The tequila industry was also significantly affected by the global pandemic.
The global impact of COVID-19 has been unprecedented and staggering, with tequila witnessing a positive demand shock across all regions. Though this trend proved to be surprising, tequila brand companies were thrilled to see their businesses thriving amongst all the chaos. In fact, the global market exhibited a higher growth of 6.4% in 2020.
Though there’s no way to say for sure why the tequila industry saw growth during this challenging time, it can be assumed that more people were drinking at home. Despite restaurant and bar sales plummeting amongst closures, consumers were more likely to take their alcohol consumption into the safety of their own home, drastically improving tequila market sales. Sales for ready-to-drink products (canned cocktails) also increased as well. Those who appreciate margaritas and other tequila drinks suddenly appreciated an at-home cocktail during quarantine.
The tequila market is projected to grow from USD 9.89 billion in 2021 to USD 14.70 billion in 2028 at a CAGR of 5% in the 2021-2028 period. These statistics are promising for tequila entrepreneurs and those who are considering breaking into the industry.
According to the Tequila Regularly Council (CRT), its production increased 3.8% compared to the same period of the previous year. With the global pandemic shaking the nation, it worked in favour of liquor companies, especially that of tequila.
This has fared well for tequila private labels, tequila distilleries, and tequila private brands. For those who had invested in the tequila industry, or those who are interested in investing, it is an excellent opportunity to see a return on your investment. With stocks being relatively unstable in the past year, there is ample opportunity to see a return.
This also opens an opportunity for brand marketers to acknowledge a new target audience. Instead of strictly appealing to those who appreciate a drink from a professional mixologist, it’s a perfect time to appeal to those in the comfort of their own home. Expanding ready-made cocktails will also be a good business plan in the near future.
Conclusion
Though the pandemic has shaken the globe, it has opened unlikely opportunities and the potential for growth in different avenues. Luckily, the alcohol industry has seen significant advantages from COVID-19. With tremendous growth and exciting predictions, investors now can hop on a promising venture and see massive returns. Liquor brands can pivot their business models and produce new products that will also appear to the at-home drinking model that has shown to be popular over the last year.
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