Mexican Tequila Industry Faces Glut, Trade Threats as Demand Slows

Mexico’s tequila industry confronts mounting inventories and potential US tariffs as demand cools following years of explosive growth, industry data shows.

Inventories have reached 525 million liters, approaching the industry’s annual production of 599 million liters, according to figures shared with the Financial Times by the Tequila Regulatory Council. US consumption declined 1.1% in early 2023, contrasting with 17% growth in 2021.

The industry, which exported two-thirds of its production in 2023 with 80% destined for the US market, faces a possible 25% tariff threatened by incoming President Donald Trump. Spain and Germany, the next largest export markets, each account for just 2% of exports.

Major brands including Patron and Casamigos have reduced prices as consumer demand softens. Agave prices have also dropped from 30 pesos per kilo to between six and eight pesos for contracted suppliers, reaching as low as two pesos in the spot market.

The inventory buildup presents specific challenges due to Mexico’s warm climate, where tequila typically cannot age beyond three years due to rapid evaporation.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

US Halts Low-Value Import Exemption in New Trade Tariffs

The United States suspended a key trade exemption for low-value imports from China, Canada, and...

Monday, February 3, 2025, 12:10:00 PM

Tariff Tantrum: Trump Targets Canada’s Digital Tax

President Donald Trump recently signed a memo aimed at retaliating against nations that tax American...

Tuesday, February 25, 2025, 02:10:00 PM

Pentagon Targets Domestic Gallium Recovery After China Export Curbs

The Pentagon plans to award contracts to North American companies by year-end to recover gallium,...

Friday, March 7, 2025, 10:39:00 AM

Canada Rolls Back On Most Counter-tariffs But Keeps Metal Duties

Canada moved to defuse a tariff fight with the US by dropping most of its...

Monday, August 25, 2025, 07:47:41 AM

Ford Dumps Canadian-Made Crown Royal to Protest Job Losses

Ontario Premier Doug Ford poured out a bottle of Crown Royal whiskey during a news...

Wednesday, September 3, 2025, 12:55:00 PM