This article was originally published in the Brand Finance Alcoholic Drinks 2025 report
Managing Director,
Brand Finance Americas
Tequila remains one of the fastest-growing spirits categories globally, with the market valued at an estimated USD16 billion in 2024. The rise has been driven by increasing global demand for premium and ultra-premium spirits, the surge of cocktail culture, and a wave of celebrity backed brand endorsements. Mexico dominates the category globally - both as the birthplace of tequila and as home to its most valuable brands.
The United States is the primary market, accounting for over 70 % of Mexican tequila exports. Over the past two decades, tequila volumes in the US have surged by more than 300%, while revenues have increased over 500%. However, recent sales data indicates the category is settling onto a more sustainable growth path. While uncertainties around tariffs had earlier threatened disruption, tequila remains exempt from the latest US duties under the US Mexico Canada Agreement (USMCA), alongside Canadian whisky, shielding it from new 25% levies on non-USMCA goods. Nonetheless, the broader trade environment remains volatile, and tariff threats - past or potential - continue to affect industry sentiment.
Three Mexican tequila brands feature in the Brand Finance Spirits 50 2025 ranking: Don Julio, José Cuervo, and Patrón. Don Julio stands out for both performance and perception. Climbing to 15th place (up from 16th in 2024), its brand value rose 4% to USD1.6 billion. According to Brand Finance research, Don Julio leads on all key brand metrics in Mexico: 97% awareness, 68% usage, and the highest recommendation score in the category. While parent company Diageo reported a 37% decline in regional sales across Latin America, Don Julio’s brand equity remains strong. Its continued investment in premium positioning, including viral 1942 mini bottles and a first-of-its-kind Apple Vision Pro brand experience, keeps the brand front of mind for consumers and reinforces its luxury credentials.
By contrast, José Cuervo has seen its ranking fall sharply, dropping from 18th to 29th, with brand value down 20% to USD1.0 billion. Despite maintaining high awareness (97%) and usage (63%), the brand scores lower on recommendation and strong consideration, suggesting weaker loyalty. Cuervo’s strategy of spanning both mass-market and premium tiers has supported broad distribution, particularly across retail and e-commerce. However, the brand’s challenge now lies in deepening emotional connection with consumers and strengthening its value perception.
Patrón, meanwhile, retains 13th spot, though its brand value dipped 2% to USD1.8 billion. The brand enjoys strong global prestige but underperforms in its home market, with only 62% awareness and 20% usage in Mexico. Patrón continues to double down on the ultra-premium segment, launching new product lines like Cristalino and El Alto, and activating high-profile campaigns across global travel retail, including a its Heathrow pop-up. Despite its premium image, the brand faces challenges in building deeper emotional and market connection with domestic consumers.
The tequila boom is moderating but far from over. In a maturing market, brands with clear positioning, strong domestic and international engagement, and resilience to external risks will define the next phase of growth. Mexico’s leading tequila brands remain at the heart of this story.
