It’s time for tequila as India leads growth

Bengaluru: Out of the shot glass and into the mainstream conversation- that’s tequila’s journey as India now becomes the world’s fastest growing market for the niche drink. India recorded a 31% year-on-year increase in volume and a 40% rise in value for agave-based spirits in 2024-25, the highest growth among 21 markets tracked by a global research firm.Data from International Wine and Spirits Record, shared exclusively with TOI, shows the momentum is expected to continue, with volumes projected to grow at a 14% compound annual rate through 2034, effectively doubling consumption by 2031.The surge is driven by a mix of premiumisation, shifting consumer preferences, and a growing cocktail culture in urban India. “Consumers are drawn to its variety and versatility,” Jason Holway, senior consultant at IWSR, told TOI. “It serves as the base for several popular cocktails but can also be drunk neat, particularly at the ultra-premium end.”Nearly 60% of consumption comes through cocktails, according to a Diageo India spokesperson, with drinks like Picantes and Palomas driving trial and familiarity.Younger drinkers see tequila as more than a party shot. Locally produced agave spirits are carving out a market. While tequila is made from agave, agave spirits are a broader category.“The data validates what we have been observing for a few years,” said Rakshay Dhariwal, founder of Maya Pistola Agavepura. “Cocktail culture in India has matured very quickly, and agave sits at the centre of that.”He added that while consumption remains largely cocktail-led, there is a “noticeable growth in considered sipping”, particularly for aged expressions.Dhariwal said Indian agave spirits are not positioned as substitutes for tequila, but as a parallel category shaped by different origins and production methods.“Tequila has done the foundational work of educating consumers about agave… The opportunity is to sit alongside tequila, not to fight for the same position,” he said. Unlike tequila, which can only be produced in designated regions of Mexico, Indian players are working with agave cultivated in the Deccan Plateau.D’Yavol Spirits, an alcohol brand, is preparing to launch an Anejo tequila priced between Rs 20,000 and Rs 30,000.