BLOOMINGTON, Ind., Oct. 28, 2026 /PRNewswire/ -- Thirty-five percent of U.S. adults who drink tequila at least monthly say they're drinking more tequila than a year ago, compared with 9% who say they're drinking less, according to "Tequila's 10% Problem," a new study from The Tequila Report. Among respondents ages 21-29, 53% say they're drinking more.
The findings come as overall alcohol use remains near historic lows. Gallup's 2026 poll found that 54% of U.S. adults say they drink alcohol, matching the record low the organization recorded in 2025 (https://news.gallup.com/poll/1582/alcohol-drinking.aspx).
The 41-page report, sponsored by PKGD Group, combines a national survey of 1,000 adults ages 21 and older with an analysis of retail scan data to examine how people drink tequila, what they spend and why they choose one bottle over another.
"There's plenty of data on what sells. We wanted to understand why people buy," said Jay Baer, editor and co-founder of The Tequila Report, who developed the study with research director Dave Wiley and publisher and co-founder Maddie Jager.
Craft tequila grows as category dollars fall
Shoppers bought a record 290.5 million bottles of tequila in the 52 weeks ending Aug. 29, 2026, up 5.9%, according to retail scan data. Dollar sales fell 3.5% to $5.29 billion.
Average spending per bottle dropped from $21.37 to $18.21 over two years, a decline of nearly 15%. Brand price cuts explain about one-fifth of that decrease. The rest came from shoppers choosing smaller bottles and less expensive brands.
Against that backdrop, dollar sales of the 181 brands the report classifies as craft grew 18.6%, while sales of all other brands fell 5.4%. Craft brands account for 9.7% of tequila retail scan dollars.
Over two years, craft brands added approximately $167 million in retail sales while the rest of the category lost roughly $92 million. Craft therefore accounted for more than all of tequila's net dollar growth over that period, despite representing less than a tenth of sales.
The report defines craft brands as those that do not use industrial diffusers, declare their tequilas are made without additives, and sell fewer than 200,000 nine-liter cases annually in retail scan data.
The report's title comes from craft's share of sales. Craft tequila is growing far faster than the rest of the category, but it still accounts for less than 10% of retail scan dollars. Reaching the next stage of growth means winning over the other 90%, people who currently choose other tequilas. The report examines what tequila drinkers value, what they spend and whose recommendations they trust.
What drives the purchase
- Familiarity ranks first. When buying tequila for themselves, 72% of respondents say familiarity with a brand matters some or a lot, ranking first among 12 attributes tested. Price follows at 64%, positive online information at 56% and additive-free claims at 55%. Three-quarters have heard of additive-free tequila.
- Everyday spending stays at $50 or less. Eighty-two percent of blanco buyers report typically spending $50 or less for a 750ml bottle, with median spending of $40. Nearly half of respondents have bought a bottle costing $100 or more, but only about one in 10 typically spends that much on any tequila.
- Bartenders outweigh store staff. Friends and family are the most commonly cited influence on which tequila respondents try or buy, at 47%. Bartender or server recommendations are cited by 32%, compared with 17% for retail employees. Both rank ahead of every paid advertising channel tested. Fifty-nine percent have researched a tequila online before buying it.
"Craft tequila does not need more brands explaining why they are better," Wiley said. "It needs more drinkers to be able to name the one they want next."
How Americans actually drink it
- Shots nearly match cocktails. Sixty-one percent of respondents say they often or almost always drink tequila as a shot, nearly matching the 64% who drink it in cocktails such as margaritas. Forty percent often or almost always drink it neat. Among drinkers ages 21-29, 73% regularly take shots.
- Women lean toward cocktails, men toward neat pours. Women are more likely than men to drink tequila in cocktails, 72% versus 57%. Men are more likely to drink it neat, 47% versus 32%.
- Most say celebrity ownership doesn't matter. Sixty-four percent say celebrity ownership does not matter at all, while 20% say it matters some or a lot. About 31% of drinkers under 40 say it matters, compared with 5% of those 60 and older.
- Cannabis is an alternative for some cutting back. Among respondents who say they're drinking less tequila, 18% say they're using cannabis instead. By comparison, 11% are switching to other spirits, beer or wine, and 6% to hard seltzer or canned cocktails.
"For decades, tequila competed primarily with the bottle next to it on the shelf," Baer said. "Now it is also competing with entirely different ways people relax and socialize."
The complete report is available to download free at https://www.tequilareport.com/tequilas-10-percent-problem.
