Over the last several years, the consumption of tequila in the UK has seen a significant increase. It’s pretty amazing to see how this Mexican spirit has become such a big deal in the UK alcohol industry. The increase in tequila sales can be attributed to a few changes. These include how people choose to spend their money, growing trends, and the popularity of ready-to-drink tequila options.
As more consumers try different spirits, tequila provides a unique opportunity. Businesses in both the on-trade and off-trade sectors can expand their offerings and capitalize on this growth. Let’s explore this concept a bit more in-depth and share how entrepreneurs can take advantage of the rise of tequila in the UK.
Looking at the Amount of Tequila Sales in the UK
The sales of tequila in the UK have shown impressive growth over the years. Both the off-trade and on-trade markets can take credit for this. According to Beverage Daily
tequila sales surged by 36% in the year leading up to September 2021, with over 1.5 million bottles sold and a market value of £33 million (USD 39 million).
It’s important to add that the growth in tequila sales is not limited to traditional bottle sales. There has also been a significant increase in the ready-to-drink products that contain tequila. One statistic shared that there was a staggering rise of 150.5% in 2024 in tequila-based RTDs.
NielsenIQ data further confirms this upward trend, showing that the UK off-trade market for tequila is now valued at £35 million (USD 44 million) after experiencing a year-on-year growth of 12.5% in value and 6.6% in volume. This continued expansion suggests that tequila is becoming a staple in UK households and bars. It offers an attractive market for businesses looking to tap into the growing demand for spirits like tequila.
The Impact of Shifting Consumer Wants
A top contender for the rise of tequila in the UK is the increasing popularity of cocktails. During the global COVID-19 pandemic, mixology became a trending activity for many of those staying indoors. Tequila is a prime ingredient in many classic cocktails such as margaritas, palomas, and even tequila sunrises. These are just a few examples of tequila-based drinks that are on the rise in terms of popularity in the UK.
The cocktail boom significantly boosted tequila sales in the UK. Consumers sought out premium spirits to recreate their favorite bar drinks at home. The range in flavor from light, citrusy flavors to deeper, more complex notes, makes tequila the perfect base for many spirit-based drinks. This trend has continued post-pandemic. Consumption of tequila in the UK maintains its place as a popular choice for both at-home mixology and bar experiences.
The Rise of RTD Tequila Products
Another key factor contributing to the growth of sales of tequila in the UK is the rise of RTD (Ready-to-drink) products. RTDs containing tequila have experienced an unprecedented boom, with sales increasing by 150.5% in 2024. These convenient, ready-made drinks offer consumers an easy way to enjoy tequila-based cocktails without the need for extensive preparation. This significantly expanded the appeal of tequila beyond traditional cocktail settings, reaching a rising number of consumers seeking convenience without compromising on taste and beverage quality.
The popularity of tequila-based RTDs also reflects a broader shift in consumer preferences toward high-quality ingredients and numerous flavor options that RTDs offer. This segment is fast growing across the beer, wine, and spirits market. As a result, businesses that invest in tequila-based RTDs stand to benefit from this rapidly expanding category.
Businesses that recognize the potential of tequila-based RTDs and swiftly work to meet consumer demand can capitalize on this trend. Entrepreneurs can leverage the widespread availability of these convenient and flavorful beverages to position their businesses as leaders in the ready-to-drink tequila industry.
Opportunities for On-Trade and Off-Trade Businesses
The increased demand for tequila in the UK is providing many significant opportunities for both on-trade and off-trade businesses. For a bit of clarification, on-trade businesses include places like bars and restaurants, whereas off-trade refers to retail stores.
Bars and restaurants can capitalize on this trend by introducing new tequila selections, offering tequila flights, and creating signature cocktails featuring the spirit. Owners might even consider creating a private-label tequila, which can highlight the essence of the restaurant.
Off-trade businesses also stand to benefit from the increasing popularity of tequila. Retailers can expand their tequila offerings in the UK by stocking a wider range of brands. This includes both premium and artisanal varieties. In addition, investing in tequila-based RTDs provides a convenient, on-trend option for customers looking to enjoy tequila without the need for complex preparation.
Start Your Own Private Label of Tequila in the UK
The rise of tequila in the UK presents a golden opportunity for businesses to capitalize on the growing demand for this Mexican spirit. Are you considering tapping into the thriving market of tequila in the UK but feel overwhelmed by the complexities of starting your own brand? Look no further! Tequila & Spirits Mexico is here to help. Our team of experts specializes in Mexican spirits and is committed to guiding you through the entire process, from branding to production and even export.
There is no better time than the present to get started! Explore our private-label services and watch your private label come to life at tequilaspiritsmexico.com.