Tequila was once thought of as a drink for shots. But agave spirits – particularly tequila and mezcal – have taken the bar by storm. They’re appealing to consumers because of their wide range of flavor profiles.
There’s also tequila’s Mexican heritage: which is a firm favorite with consumers as celebrations such as Cinco de Mayo take off. And celebs such as George Clooney have helped tequila rise to new heights.
1) A new twist to old friends
Tequila can offer a new twist to cocktails traditionally associated with other spirits.
“It is often assumed that tequila is only enjoyable neat or in a traditional tequila cocktail, like a Margarita or Paloma,” says agave specialist Deano Montcrieffe, working with the Diageo Bar Academy. “However, when swapped in for other base spirits, the agave can bring a depth and give new life to familiar or overused recipes.”
A Don Julio 70 White Negroni, for example, uses Diageo’s Don Julio tequila instead of gin ‘for a fresh, lighter twist on the classic with subtle vegetal notes’.
That’s something also seen by Bacardi: “Bartenders are utilizing the agave-based serve to bring fresh flavor to classic cocktails such as the Negroni, the Espresso Martini and the Manhattan – traditionally made with gin, vodka and whiskey, respectively,” says the spirits giant in its recent cocktail trends report.
Similarly, Rock and Roll Hall of Famer Sanny Hagar has launched ‘mezquila’, showing that tequila does not have to stick within strict comfort zones when it comes to cocktails.
2) …But don’t forget the classics…
The margarita was the most popular cocktail in the US in 2023, according to data from Nielsen IQ.
And it’s actually been the most popular cocktails since the market researchers started compiling data in 2015, showing this is no temporary fad.
Paloma – tequila, grapefruit and lime – is another trending cocktail. And don’t forget tequila sunrise: another version that’s a continual favorite.
But expect to see these classic cocktails elevated with premium products and new twists (think spicy margarita).
Margaritas, palomas and tequila sunrise are all drinks that are visually highly appealing, making them trend strongly on social media.
3) Spicy
First there was the spicy margarita. Now, as the spicy trend takes hold across the food and beverage universe, tequila and its Mexican heritage play perfectly into this trend.
Spicy is one of the top trends identified in Diageo’s 2024 Flavor Forecast. Jalapeño has become a ‘powerhouse ingredient’ in the world of cocktails, with social chatter about it growing in the UK (+32%), Canada (+27%), and the US (+25%), according to Diageo’s research.
Habanero, Aji Amarillo, and other Latin-inspired flavors are popular infusions for bartenders, with Italian chilli.
4) Premium
Tequila was unanimously ranked across regions as the number one premiumization category globally and the hottest pick for premiumization, according to over three quarters (78%) of respondents in the Bacardi Global Brand Ambassador Survey.
In tequila, premium and super-premium brands highlight their quality, provenance and aging process; while luxury tequilas often boast celebrity endorsement and artisanal bottles.
Expect to see premium expressions take tequila cocktails up another notch.
5) RTD
Tequila is making waves in RTDs: becoming a more popular base for RTD alcohol.
Setting the trends as ever in 2024 is White Claw with White Claw Tequila Smash; alongside Truly Tequila Soda.
RTDs are taking behind-the-bar flavor experimentation and fixed it into convenient and portable formats.
White Claw Tequila Smash, for example, comes in four flavors which lean into tequila: Strawberry guava (a native Mexican plant used in drinks such as aguas frescas, with the rich strawberry flavor pairing well with tequila’s roasted agave notes); pineapple passion fruit (another aguas fresca favorite); mango tamarind (a fruit found in sweet and savory Mexican food); and lime prickly pear.
6) Tequila highballs
A highball is typically a longer drink, served in a tall glass and mixed with a larger proportion of carbonated beverage.
Tequila highballs are trending: thanks to their simplicity and generally more sessionable strength.
Trending, in particular, is ranch water: a Texan favorite made with blanco tequila, lime juice and carbonated mineral water. Big names such as Coca-Cola (Topo Chico Ranch Water) and Constellation Brands (Modelo Ranch Water) are helping the format grow.
7) Low and no
The no/low-alcohol market in the US continues to grow, following a volume CAGR of +25% (2019-23) with forecast growth of +15% volume CAGR (2023-27), according to market analysts IWSR.
Younger consumers are much more open to the concept of low or no alcohol free drinks and are also more likely to be moderating their consumption.
Punta Santos launched in the US last year, coming in at 28% ABV compared to 40%-50% for most tequilas. That also equates to 77 calories per serving (compared to around 98 for full proof).
The drink was designed for the mindful drinker who wants to reduce the amount of alcohol they’re consuming, while still enjoying the taste, aromas and flavors of premium tequila.
Blake Lively’s Betty Booze brand is celebrating National Tequila Day with its tequila-infused RTD canned cocktails, which come in at 4.5% ABV.
But it’s also promoting its Betty Buzz line of mocktails, with mixers and recipes that allow drinkers to make their cocktails with as much – or as little – alcohol as they like: take, for example, a spicy sparkling mock-arita with Betty Buzz Sparkling Lemon, lime, 2-3 jalapeno slices and tajin.
8) Barrel aged
Aged tequilas have complex flavors thanks to the barrel aging process. That’s being used increasingly by bartenders to bring an extra layer of complexity to cocktails.
Reposados are aged in oak for up to a year, and are a favorite for bartenders given they’re relatively reasonably priced. Meanwhile, añejo refers to tequila that has been aged in oak barrels for anywhere from one to three years.
