I can’t help but think about what it means for us in the tequila investment market, as we approach the first Federal Reserve meeting of the year on January 29th. Most major economists suggest that it’s extremely unlikely interest rates will decrease from the current 4.25-4.5% range, as Inflation is still above the Fed’s 2% target, and it’s even been accelerating recently. While it’s not exactly groundbreaking news, this has important implications for tequila investors like us.
Why Interest Rates Matter to Tequila Investors
Interest rates are one of the biggest factors that influence economic growth. Rising consumer confidence and increased spending are commonplace when rates are low, as it’s cheaper for people to borrow money. Tequila, especially premium aged varieties, is a discretionary product, so it thrives when people have money to spend on something special.
Looking ahead, most experts expect interest rates to drop closer to 4% by the end of 2025. Getting there isn’t guaranteed, however, that would be great news for tequila investors because it could fuel more economic growth and demand for premium tequila.
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The Inflation Challenge
I’ve got my doubts about inflation staying under control long-term. Ripples of increased costs on important goods can be expected in the economy due to Trump’s proposed tariffs. American consumers might find themselves with less disposable income if wages don’t keep up with rising prices. For a non-essential market like tequila, that could be a challenge.
That being said, all is not doom and gloom. In fact, the global picture for tequila has never looked brighter.
The Global Tequila Boom
Tequila is having a moment on the world stage, regardless of what happens with interest rates or inflation in the U.S. Tequila’s growth in popularity is growing rapidly, and globalization is opening doors in markets like Canada, the UK, Europe, and Asia Pacific, all showing projected compound annual growth rates of 8-10% over the next decade.
A big part of this growth comes down to premiumization, as consumers are trading up for higher-quality products. This means demand is especially soaring for aged tequilas like Añejo and Extra Añejo.
Make sure to check out more on Why Aged Tequila is Taking Over the Spirits World.
The numbers back it up too. Up until 2032, the tequila market is projected to grow at a compound annual growth rate (CAGR) of 11%, reaching $42.5 billion. This is therefore not just a trend; it’s a major shift in how people think about tequila.
Why Tequila Cask Investments Make Sense
This brings me to why I believe investing in casks of tequila is such a smart move. Investing in casks of tequila enables investors to take advantage of the natural aging process. This means they can buy unaged tequila (blanco), and allow it to age until it reaches Añejo and Extra Añejo status, which are renowned for their higher quality, scarcity and increased value. As demand for premium tequila continues to grow, so does the value of the casks where it all happens.
Looking Ahead
I’ll be keeping an eye on how interest rates, inflation and consumer spending unfold as we navigate the Fed’s eight planned meetings this year. But no matter what the economic headlines say, tequila’s trajectory is clear. The global thirst for premium aged tequilas is only growing, and that makes cask investments an exciting space to be in.
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So, here’s to a bright 2025 for tequila—and for those of us who are smart enough to see its potential. Salud!
Meet the Author
Samuel, CO-FOUNDER & CEO
As CEO and co-founder, Samuel carries forward a family legacy of passion for spirits. His journey began with Scotch whisky investments, expanding to encompass Irish and Japanese markets. Now, he brings his expertise to the US, pioneering tequila investment opportunities. Visit our blog for more insights from Samuel.