The Industry’s Role in Tequila Prices

Read Time: 5 min.

Maybe you’ve heard the news that tequila’s popularity has been soaring for the past few years. If you’ve considered starting your own tequila brand, the time has never been better. Here’s why.

 

The Tequila’s Industry’s Peak Prices

It’s true: tequila is in high demand. There exists a pattern in the tequila industry that the experts are well aware of. Every 12 years or so, there is a fresh cycle of “boom and bust” for the industry. This is all due to the source of the agaves and mezcals so highly in demand… the blue agave.

Essentially, the blue agave crop goes through growth cycles that tend to drive demand for agave-based spirits. When demand is high but agave is experiencing a shortage, farmers plant more crops. Once these crops mature, a process which takes well over six years, there is an abundance of agave that far outweighs its demand. Right now, blue agave is at peak price, but it’s getting ready to turn soon.

 

Agave Popularity

The good news is that even if the bust happens, agave is in much higher demand than it was during the previous bust, at the time of the Great Recession in 2008. Both the diversity of products made from blue agave and the agave-based spirits have changed drastically since that time.

Fine tasting experiences: Have your own at Aceves Spirits

Experts agree that visiting an authentic Mexican tequila brand distillery is one of the best ways to have a fine tasting experience. This is especially important if you’re in the process of developing your own premium tequila brand. Here’s why you should come visit Aceves Spirits and what you can expect to experience.

For one, premium tequila labels are on the rise. Instead of settling for cheap tequilas that are mixed in margaritas, people are looking to sip a smooth, straight tequila drink. Additionally, with the advent of so many premium tequilas has come the association with a particular desirable, exclusive lifestyle. When people order their drinks at the bar, they want to request sophisticated, well-respected premium tequila labels in them.

Additionally, agave syrup has become a major commodity thanks in part to the wellness industry. As people increasingly turn to natural sweeteners and try to reduce or eliminate artificial sugars in their diets, agave syrup continues to become a more popular alternative. Large amounts of Mexican blue agave are now being harvested for the sole purpose of creating agave syrups.

 

Partner With Aceves Spirits

It’s clear that now is the time to invest in the tequila industry and start your own brand. But due to the fluctuations in agave prices over the coming years, you want to be sure to partner with a reputable tequila developer. Creating a contract-based project or futures market that anticipates the agave growth cycle should be simple. And your partner should be an expert in this realm.

Aceves Spirits brings three generations of expertise in agave growth and harvest and tequila development. We’re an integrated beverage developer with a portfolio of successful brands under us. Want to know more about the forecasted future prices? We’re ready to talk about it.