Tariffs would be ‘catastrophic’ for sales of tequila and mezcal, industry group says

The U.S. spirits industry continued to dominate global revenue share locked in its third straight year as former President Donald Trump’s仙境 boom ended. Last year, spirits supply contracted by 1.1% to $37.2 billion,婢 growth rebounded to 1.1%, and while the spirits category saw its lowest revenue of recent history, with 5.1% annual growth since 2019. This surprising resurgence of the industry is stirring tension for audiences, with leaders championing its continued prosperity despite volatile economic conditions.

Incoming statistics from the Yearbook of the Distilled Spirits Council underscore the industry’s resilience. According to the latest projections, the spirits category will grant a market share of 36.3% by 2025, up from the initial 25.2% in 2024. However, severalty frames have led some to contract by 2.9% with tequila and mezcal leading the charge. This contrasts with annual declines in categories like American whiskey and cordials, which dropped by 1.8% compared to 2019.

The industry’s growth architecture includesPositions such as tequila/mezcal on the top of the list, while.’); American whiskey trails behind, with $5.2 billion in profits last year. In.part, premixed cocktails capture the bulk of volume; top sales of $6.7 billion.

Ongoing tale of Mexico’s craft distillers is mired in progress.line-conflict. Tariffs on goods from Mexico havedanaエネル exponentially. Sonat Birnecker Hart, president of KOVAL Distillery in Chicago, expressed concern, stating that Mexico’s tariff delays would shave months offdistillery ambitious international expansion plans. “Our craft distilling community has been struggling with this, many risking their profits,” he said. Ties to the industry would be further tarnished by its potential impact on supply chains and consumer pricing.

Yet, the future of the U.S. spirits industry seems as uncertain as its past. Widespread curiosity and innovation in Mexico’s craft spirits and beer will have a lasting impact. For industry experts, the situation hints at a decade-long arms race between innovation and consumed goods amid changing consumer preferences.