In this article, we are going to discuss the 20 states that drink the most tequila. You can skip our detailed analysis of the global tequila market, the recent investment in the tequila industry, and the success of celebrity-owned tequilas, and go directly to 5 States that Drink the Most Tequila.
The tequila we know and love today didn’t start off the way we recognize it now. The origins of the famed liquor date back to around 250-300 A.D., when the Aztecs first fermented the sap of the agave plant to produce their ceremonial wine, ‘pulque’. This liquid was very important to Aztec culture as they also worshiped two Gods – Mayahuel, the goddess of the Maguey, and her husband Patecatl, the god of pulque. Though the first documentation of the agave wine appeared much earlier, the drink really caught on centuries later when the Aztecs received a surprise visit from the Spanish Conquistadors.
The parched Spaniards introduced the region to the process of distillation and when their brandy supplies ran low, they turned to agave and produced Mezcal. The first large-scale distillery was built in the 1600s in what is now Tequila, Jalisco, and the commercial production of tequila started in the following century when the famed Cuervo family started distilling the spirit in 1758.
Global Tequila Market:
Tequila is one of the Most Consumed Alcohols in the World. The global market of the popular liquor was valued at $14.7 billion in 2022, and is expected to reach $30.3 billion by 2028, with a CAGR of 12.3% during the forecast period. The growth in popularity of tequila can be attributed to a number of factors, including the expansion of the premium spirits market, the introduction of new flavors, and a greater social media presence.
The United States is among the Countries that Drink the Most Tequila. The agave-based libation’s popularity has been on the rise in America for years, and in 2021, it even surpassed whiskey in retail sales, making it the country’s second best-selling spirit behind vodka. Over the last year, tequila has rapidly captured more market share and multiplied sales to compete with vodka’s long-standing popularity in the U.S. On-premise tequila and mezcal sales increased by 17.2% in 2022 while vodka sales remained flat. According to the Distilled Spirits Council of the United States, tequila and mezcal revenue rose to $6 billion last year, an increase of 17.2% from 2021.
As we mentioned in our article – 20 Best Cheap Tequilas Under $50 for 2024 – 2022 was a record year for Mexico’s tequila exports, amounting to $3.6 billion between January and October – a 34.1% jump year-over-year. The tequila industry also attracts hordes of tourists to Jalisco every year, contributing hundreds of millions of dollars to the local economy and supporting over 70,000 jobs.
Recent Investment in the Tequila Industry:
The Brown-Forman Corporation (NYSE:BF-B) announced earlier this year that it was investing approximately $200 million to expand its Casa Herradura tequila distillery in Jalisco, Mexico. The expansion will allow the Jack Daniel’s maker to meet the increasing global demand for its premium tequilas.
The first phase will expand the water recycling and treatment plant, followed by the expansion of capacity for distilling, bottling, maturation, and processing. The Kentucky-based Brown-Forman champions Casa Herradura as having been a pioneer in establishing a water recycling and treatment plant that met government standards, while it is also one of the spirits giant’s zero waste to landfill sites.
Casa Herradura, one of Mexico’s most historic and renowned tequila producers, was acquired by the Brown-Forman Corporation (NYSE:BF-B) in 2007. The company has been harvesting, producing, and estate bottling tequilas from the small town of Amatitán in Jalisco, since 1870.
The Brown-Forman Corporation (NYSE:BF-B) is placed among the Largest Alcohol Companies in the World in 2023.
The Success of Celebrity-Owned Tequilas:
A growing number of celebrities are investing their time and money in the spirits business by backing brands, getting involved with distillation, deciding on flavor profiles, or forging partnerships within the industry. These ventures have often proven quite lucrative.
In 2013, George Clooney and his partners Rande Gerber and Mike Meldman founded Casamigos Tequila, and four years later, the brand was acquired by Diageo plc (NYSE:DEO) in a deal worth up to $1 billion, as the world’s largest spirits maker sought to lift its presence in the high-growth market. Diageo plc (NYSE:DEO) paid $700 million upfront, with potential payment of a further $300 million linked to the brand’s performance over 10 years.
However, things are looking good for Mr. Clooney and company, as Casamigos has achieved massive success since the deal and with global sales of 3.2 million 9-liter cases in 2022, now ranks among the Most Popular Tequila Brands in the World. Also, the recent news that Casamigos expanded its lineup with a cristalino expression should only add to its potential to sell another few million over the coming years.
Diageo plc (NYSE:DEO) is counted among the Best Alcohol Stocks to Own According to Hedge Funds.
Similarly, the WWE legend and Hollywood superstar Dwayne ‘The Rock’ Johnson also launched his ultra-premium, small-batch tequila brand named Teremana in 2020. The venture has proven to be quite successful and the brand crossed the coveted milestone of 1 million 9-liter annual case sales earlier this year, putting it among the Top-Selling Tequilas in the U.S. To meet growing consumer demand while maintaining the small-batch process used to make its tequila, Teremana has also invested in the construction of an expanded distillery, which is planned to begin production towards the end of 2023. Moreover, it was announced recently that the brand has also launched the Mana Holiday House – an immersive virtual holiday experience and limited-time pop-ups to ‘share the mana’. Accessible online at ManaHolidayHouse.com, the one-stop virtual holiday experience is designed to make at-home holiday gatherings simple and easy to enjoy with family and friends.
With that said, here are the Biggest Tequila Drinking States.
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Methodology:
To collect data for this article, we referred to the 2022 Liquor Handbook by the Beverage Information Group, looking for the States that Consume the Most Tequila. The following states have been ranked by their total number of 9-liter cases of tequila sold in 2021.
20. Wisconsin
Cases of Tequila Sold in 2021: 323,030
Wisconsin had per capita ethanol consumption of 3.15 gallons in 2021, putting it among the States that Consume the Most Alcohol per Capita. The Badger State has one of the lowest alcohol tax rates in the country, resulting in lower retail and wholesale prices.
La Piña is the new go-to spot for tequila lovers in Milwaukee. The bar takes pride in its tequila selection, offering an impressive assortment of premium brands and rare gems
19. Massachusetts
Cases of Tequila Sold in 2021: 323,740
The Bay State witnessed a 12% increase in tequila sales in 2021 compared to the previous year, when it sold approximately 289,000 cases of the spirit. Alcohol abuse costs Massachusetts at least $5.6 billion annually, while causing thousands of deaths and illnesses, according to a new analysis from Boston University researchers.
18. Oregon
Cases of Tequila Sold in 2021: 377,060
Tequila saw the largest increase in share of the overall spirits category in Oregon, increasing from 12.8% of total spirits sales in 2020 to 14.6% in 2021 – an increase of $21.4 million. Casamigos and Espolòn are the two most popular tequila brands in the Beaver State.
17. Missouri
Cases of Tequila Sold in 2021: 421,070
Home to Anheuser-Busch, Missouri is a major center of beer brewing and ranks among the U.S. States With the Highest Beer Consumption per Capita. However, tequila is also a favorite tipple in the Show-Me State. The locally-owned Una Vida Tequila is a premium brand gaining popularity in Missouri.
16. Pennsylvania
Cases of Tequila Sold in 2021: 449,900
Pennsylvania’s wine and spirits sales topped $3.15 billion in the last fiscal year, an increase of $133 million from 2021. According to the Pennsylvania Liquor Control Board, Cognac, silver or blanco tequila, and flavored whiskey are the spirits gaining the most popularity in the Keystone State.
Pennsylvania is placed among the States that Drink the Most Tequila in 2023.
15. New Jersey
Cases of Tequila Sold in 2021: 451,560
Tequila is booming at the Jersey Shore, and with good reason – There are plenty of cool spots to imbibe in the traditionally warm weather-friendly liquor year round. Last month, the town of Metuchen in New Jersey celebrated the opening of Meximodo Cocina Mexicana & Tequila Bar – a Mexican restaurant with more than 1,000 varieties of tequila.
14. Washington
Cases of Tequila Sold in 2021: 486,090
The tequila category in Washington is considered highly developed and its consumers very savvy. The continuing popularity of the margarita and the increased consumer interest in luxury style tequilas almost guarantee that the popular spirit will see growth in the coming years.
According to a survey by Nielsen CGA, about 20% of the respondents from Washington said that they ordered tequila while out.
13. Virginia
Cases of Tequila Sold in 2021: 531,450
Tequila accounted for 13.7% of all spirits sales in Virginia in 2022, up 18.4% from the previous fiscal year. With $2.86 million in sales, the Patrón Silver tequila ranks among the most popular spirit brands in The Old Dominion.
Virginia is counted among the States with the Highest Tequila Consumption.
12. Nevada
Cases of Tequila Sold in 2021: 603,600
Nevada is one of the U.S. states with the laxest laws related to alcohol, and many alcoholic brands, wholesalers, and suppliers use the Silver State to start and grow their brand presence for this very reason. Situated in the south of Nevada is the city of Las Vegas. As one of the most popular party towns in the country, Sin City certainly contributes heavily to the high tequila consumption in the state.
11. Georgia
Cases of Tequila Sold in 2021: 678,360
The tequila category witnessed a growth of 11.2% in Georgia in 2021, up from approximately 610,000 cases sold in 2020. Hailing from the city of Atlanta, Goza is a popular tequila brand in the Peach State.
10. Colorado
Cases of Tequila Sold in 2021: 706,880
When it comes to tequila made in Colorado, there’s no shortage of options. Whether you prefer a smooth and sophisticated blanco or a rich and complex añejo, you’ll always find something to suit your taste buds.
Colorado ranked third among States with the Highest per Capita Consumption of Tequila, with 145 cases consumed per 1,000 citizens in 2020.
9. North Carolina
Cases of Tequila Sold in 2021: 796,690
While Tito’s domination continues, top shelf tequila brands have become increasingly popular in the Tar Heel State state, as brands such as Patrón Silver climbed into the top 10 ranking of bottles sold in 2022.
Being one of the 17 control states, in North Carolina, the sale of liquor is controlled by the government, including taxes, fees, markup pricing, and the profit derived from liquor sales. At $16.4 per gallon, North Carolina ranks among the States with the Highest Tax on Alcohol.
8. Michigan
Cases of Tequila Sold in 2021: 830,480
Michigan crossed the $2 billion mark in liquor sales in 2021, easily leading all control states in total spirits volume and dollar sales.
The Great Lake State also has a top-notch tequila maker with Teeq Tequila. Founded in 2018 by a husband/wife duo, the brand is already responsible for a few ‘firsts’, like how they’re the world’s only tequila brand offering a Coconut Lime Blanco Tequila.
Michigan is among the Top 10 States that Drink the Most Tequila in America.
7. New York
Cases of Tequila Sold in 2021: 854,230
Just like New York’s growing and varied Mexican scene, tequila and mezcal have become centerpieces in bars nodding to their south-of-the-border brethren. The Empire State witnessed a staggering 96% increase in tequila sales between 2011 and 2021.
6. Arizona
Cases of Tequila Sold in 2021: 857,400
The Grand Canyon State loves its agave-based spirit and even the Arizona Diamondbacks have their own official tequila. There are a number of tequila brands crafted in Mexico with headquarters in Arizona, each with its own taste and personality. Tequila Corrido, a popular Arizona-based brand, is now available in 38 states across the country.
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- 25 Most Popular Tequila Brands in the World
- 21 Best Tequila Brands of 2023
- 29 Best Alcoholic Drinks that Don’t Taste Like Alcohol
Disclosure: None. 20 States that Drink the Most Tequila is originally published on Insider Monkey.