The Hustle Daily Show Tequila brands are taking a hit (even the celebrity ones)
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May 20, 2025 The tequila industry is facing serious challenges post-pandemic, with shifting consumer behavior and looming tariffs threatening its future. Oversupply issues in agave are hitting farmers hard, leading to a significant market adjustment. Meanwhile, TikTok is exploring mental wellness by introducing in-app meditation features. The financial landscape is evolving as companies like Regeneron acquire new ventures and Klarna grapples with layoffs and AI transitions. What's next for tequila brands amidst this downturn?
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Tequila's Market Normalization
- Tequila has experienced a decade of explosive growth, surpassing vodka as the number one spirit.
- Recently, the market shows signs of normalization with consumers spending less than during the COVID-19 peak.
Consumers Shift To Affordable Tequila
- Consumers now prefer high quality tequila at affordable prices over expensive premium brands.
- The demand shift reflects broader economic conservatism and changing luxury consumption habits.
Agave Oversupply Hurts Farmers
- An oversupply of agave results from years of excessive demand suddenly dropping.
- Farmers face declining prices and profits due to inventory buildup and reduced sales.