Brazil Tequila Market Overview, 2028

Tequila is a distilled alcoholic beverage made primarily from the blue agave plant, primarily produced in Mexico. While tequila is not native to Brazil, it has gained popularity in the country over the years. Tequila is a distilled alcoholic beverage made primarily from the blue agave plant, primarily produced in Mexico. While tequila is not native to Brazil, it has gained popularity in the country over the years. The Brazilian tequila market faces challenges due to high import taxes and strict regulations on alcoholic beverages. These factors can make tequila relatively expensive compared to other spirits in Brazil, limiting its wider adoption. While tequila is primarily produced in Mexico, there have been attempts to produce similar agave-based spirits in Brazil. Some local producers have started making Brazilian "agave spirits" using locally grown agave plants, but they cannot be labeled as tequila due to geographical restrictions. Tequila consumption in Brazil has been growing, driven by factors such as the popularity of cocktails, increasing interest in mixology, and the influence of global drinking trends. Tequila is commonly used as a base spirit in cocktails like margaritas and is enjoyed by consumers seeking a unique and vibrant drinking experience. Tequila consumption in Brazil has been influenced by changing consumer preferences and trends. There is a growing interest in premium and super premium tequilas, as consumers become more discerning and seek higher-quality options. This trend is fueled by the desire for unique and sophisticated drinking experiences. Tequila cocktails, especially the classic Margarita, have also gained popularity among Brazilian consumers. While tequila is not traditionally produced in Brazil, there has been some emergence of local tequila-inspired products. These products may be made using similar production techniques and ingredients as tequila but cannot be labeled as tequila due to geographical restrictions. However, they aim to capture the essence and flavor profiles reminiscent of tequila. According to the research report "Brazil Tequila Market Overview, 2028," published by Bonafide Research, The Brazil Tequila market was valued at above USD 74.45 Million in 2022. Some aspects of government engagement and events related to the alcohol industry in Brazil includes Regulatory Framework, Taxation and Customs, Trade Agreements, Events and Expos, etc. Tequilas will typically offer different types or expressions such as Blanco, Reposado, Añejo, and possibly other variations. Blanco is the most common type of tequila and is typically unaged or aged for a short period (up to two months) in stainless steel or neutral oak barrels. Blanco tequila is known for its clear color and vibrant, fresh agave flavor. Reposado tequila is aged for a minimum of two months but less than a year in oak barrels. This aging process imparts a smoother taste and mellows the agave flavors while adding some subtle notes from the barrels. Añejo tequila is aged for a minimum of one year but less than three years in oak barrels. This extended aging process gives it a rich, complex flavor profile with pronounced barrel influences and a smooth character. In addition to the three main types mentioned above, you may come across other variations or limited editions in the tequila market, such as Extra Añejo (aged for more than three years), Cristalino (a filtered tequila that combines the smoothness of aged tequila with the clarity of Blanco), flavored tequilas, and specialty expressions created by certain tequila brands. Some of the brands of tequila in Brazil are Jose Cuervo, Sauza, Patrón, Don Julio, Hornitos, Casa Noble, 1800 Tequila, Avion Tequila, El Tesoro Tequila, etc.

Brazil to some extent, tequilas are often classified into different grades based on their quality, production methods, aging, and pricing. A common classification includes Value Grade are tequilas that are typically more affordable and aimed at the mass market. They may have shorter aging periods or use a higher percentage of non-100% agave spirits in their production. Premium tequilas are of higher quality than value-grade tequilas and often use 100% agave spirits in their production. They may have longer aging periods and are generally priced higher than value-grade tequilas. High-end premium tequilas are even more refined and typically undergo longer aging periods in oak barrels, resulting in a smoother and more complex flavor profile. They are often made from 100% agave and are priced higher than both value-grade and premium-grade tequilas. Super premium tequilas are considered the highest quality and most luxurious offerings in the market. They are typically made from 100% agave, aged for an extended period, and crafted with exceptional care. Super premium tequilas often command the highest prices. The distribution channels for tequila in Brazil, as in many other countries, include both off-trade and on-trade channels. The off-trade distribution channel refers to the sale of tequila through retail outlets such as liquor stores, supermarkets, convenience stores, and online platforms. Consumers can purchase tequila bottles for consumption at home or for gifting purposes. Off-trade channels are essential for reaching a wide consumer base, and they often offer a diverse range of tequila brands and types to cater to different customer preferences. The on-trade distribution channel encompasses establishments where tequila is served for immediate consumption on-site. This includes bars, restaurants, hotels, nightclubs, and other hospitality venues. Tequila is commonly found on drink menus and is used in various cocktails and mixed drinks. On-trade channels play a crucial role in introducing tequila to consumers, educating them about different brands and types, and creating unique drinking experiences. Some general trends and opportunities in the Brazilian tequila market includes Growing Interest, Cocktail Culture and Mixology, Experiential Marketing and Branding, Internationalization and Importation, Education and Consumer Awareness, E-commerce and Online Sales. Considered in this report • Geography: Brazil • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Brazil Tequila market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Blanco • Reposado • Anejo • Others By Grade

• Value • Premium • High - End Premium • Super Premium By Distribution Channel • Off-Trade • On-Trade By off-trade Distribution Channel • Supermarkets and Hypermarkets • Discount Stores • Online Stores • Others By On-trade Distribution Channel • Restaurants and Bars • Liquor Stores • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us. we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Tequila industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.