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Agave in 2025: Uses, Market, Trends, and Sustainability

Agave has accompanied Mexico’s history and, in 2025, it remains a leading protagonist—from the vast blue agave fields in Jalisco to the millennia-old traditions of pulque. This succulent plant is not only the basis of tequila and mezcal; it also provides fibers, bioenergy sources, and natural sweeteners. In this blog post, we will explore agave cultivation in Mexico in 2025, its main industrial uses (tequila, mezcal, fibers, bioenergy, and food products), the current market situation (including the price of blue agave, supply–demand dynamics, and exports), as well as the environmental impact of its boom and its deep cultural significance.

Get ready for a comprehensive tour of the agave trends shaping the present and future of this emblematic Mexican plant.

Trends in agave cultivation in Mexico in 2025

Blue agave fields in Jalisco: the expansion of cultivation has transformed the landscape and is creating oversupply challenges.

Over the last decade, agave cultivation has expanded at an accelerated pace. Between 2014 and 2023, the planted area of tequila agave (Agave tequilana Weber, blue variety) increased by 167%, surpassing 134,000 hectares concentrated mainly in Jalisco and Guanajuato. Mexico is home to more than 200 agave species, at least 30 of which have productive uses; however, the blue agave variety dominates commercial crops. This excessive growth, driven by high tequila demand, has led to market saturation: what used to be scarce is now abundant. Agave takes 6 to 8 years to mature, so the wave of plantings that began around 2018–2020 is only now reaching maturity in 2024–2025, creating a significant surplus of plants ready for harvest. Many new farmers entered the business during the boom, and the number of registered producers multiplied within just a few years.

The result of this oversupply has been a drastic drop in prices (a topic we will detail later) and highlights the boom-and-bust cycles typical of agave. Today, the industry faces the challenge of better planting planning to avoid future imbalances—for example, by promoting contract farming schemes and market forecasting to align supply with demand. Nevertheless, amid these challenges, agave is emerging as a strategic crop in the face of climate change: its remarkable drought resistance and ability to grow in semi-arid soils make it valuable in an environment of extreme weather conditions. Innovations in varieties and agricultural management, together with greater awareness of sustainable practices, are shaping agave trends looking toward the immediate future.

This export boom has gone hand-in-hand with a notable increase in agave production for tequila. Over the past decade, tequila became the fastest-growing spirit in the United States, driven in part by premiumization trends and celebrities launching their own brands (though we will not mention names here). The boom led to agave shortages and very high prices in recent years, but the situation has reversed (as we will see in the market section). Despite the current oversupply of raw material, the Tequila Regulatory Council reports that the sector maintains healthy inventories—more than 522 million liters in reserve—ensuring capacity to meet future demand. For 2025, exports are even expected to surpass 410 million liters, setting new production records, which shows there is no “tequila consumption crisis” but rather a “success challenge” across the agave–tequila value chain. Tequila continues to win over global palates and sustain regional economies in Mexico, consolidating itself as the main driver behind large-scale agave cultivation.

Mezcal: artisanal boom and diversification

Mezcal, often called tequila’s “artisanal sibling,” has gained global recognition for its quality and authenticity. Although its volume is much smaller, its growth has been notable. In 2024, total mezcal production was estimated at around 11 million liters—only a fraction compared to tequila’s ~500 million. However, this traditional beverage—produced mostly in an artisanal manner—contributes significant cultural and economic value. States such as Oaxaca (home to ~90% of national mezcal) have seen mezcal drive job creation, tourism, and rural development. The mezcal industry is estimated to sustain more than 55,000 direct jobs and 210,000 indirect jobs, many in rural communities where few alternatives are as viable.

In recent years, mezcal experienced an export and global “trend” boom, although 2023–2024 brought some challenges. After rapid expansion, production decreased by 13.6% in 2023 versus the previous year, and mezcal exports fell by 8.35% due to a slowdown in key markets such as the United States and Europe. Factors such as global inflation and logistics costs have made the product more expensive abroad, temporarily slowing its growth. Even so, the category’s value continued to rise—measured at around 36 billion pesos in 2023—reflecting that demand for authentic distillates remains solid. Far from being a passing fad, mezcal has established itself as a symbol of regional identity, with dozens of different maguey (agave) varieties imprinting their character on each bottle.

A notable aspect is the emphasis on sustainability within the mezcal world. Since 86% of mezcal is made with cultivated Espadín agave (Agave angustifolia), there is concern about overexploitation of this species.

The Mezcal Regulatory Council (COMERCAM) has implemented a “green seal” that certifies more sustainable production practices, such as reforestation of wild agaves, diversification through the use of other agave varieties, and processes that reduce environmental impact. These measures seek to protect the environment and ensure that future generations can continue the mezcal tradition. In short, while it faces short-term challenges, mezcal maintains a long-term growth trend fueled by appreciation for artisanal production, the cultural richness it embodies, and concrete efforts to make it more sustainable.

Industrial uses of agave: fibers and bioproducts

Beyond distillates, agave’s industrial uses are diverse. Historically, several agave species have been used to obtain natural fibers of high strength. A classic example is henequen (Agave fourcroydes) from Mexico’s Yucatán Peninsula, whose fiber powered a thriving rope, sack, and textile industry in the late 19th and early 20th centuries. Although that henequen industry declined sharply with the rise of synthetic fibers (dropping from more than 100,000 tons annually at its peak to only a few thousand tons today), efforts persist to revitalize it through modern approaches and sustainable niche markets. Today, Yucatán produces around 5,000 tons of henequen fiber per year, focused on handicrafts, rugs, sacks, and rustic cordage—promoting local jobs and the preservation of this traditional crop.

Contemporary interest in eco-friendly materials has opened new opportunities for agave fibers. Recent research and development explore their use in biotextiles, bioplastics, and sustainable construction materials. For example, particle boards and composites have been manufactured using Agave tequilana fiber, and artisanal companies offer paper, notebooks, and even disposable tableware made from agave byproducts. These initiatives leverage residues that were previously discarded, giving them a second industrial life. One illustrative case is fiber extracted from agave bagasse (residual fiber): in addition to being used as organic fertilizer, it has been used to produce biodegradable disposables (such as straws, cutlery, and cups), reducing pollution from conventional plastics. Social media features “bioagave” projects where products ranging from clothing to straws are made from recycled agave fiber, showing that agave can also weave a more sustainable future.

Bioenergy from agave

Agave also stands out as a potential bioenergy source. Its sugars and biomass can be transformed into clean fuels, leveraging the fact that it grows in arid lands with low water requirements (unlike traditional energy crops such as sugarcane or corn). In the tequila industry, for every liter of tequila produced, around 12 liters of organic waste are generated (vinasse, agave bagasse, and leaves). Traditionally, these byproducts were an environmental liability, contaminating soils and waterways if not properly managed. Today, however, they are increasingly seen as an opportunity: Mexican research centers such as CIATEJ have implemented biorefinery projects to convert agave residues into energy and other value-added products.

For example, bagasse (the fiber left after extracting juice from agave piñas) can serve as a substrate to produce biogas through anaerobic digestion, or its cellulose can be hydrolyzed to release simple sugars that are then fermented to obtain bioethanol.

Pilot studies have demonstrated the feasibility of generating both biogas and ethanol from bagasse and leaves of Agave salmiana (pulque maguey). Likewise, vinasse (the liquid residue from distillation), rich in nutrients, can be used to cultivate microorganisms that produce biofuels or even as fertilizer. These developments pursue a dual benefit: mitigating the environmental impact of residues from the tequila agroindustry while creating alternative energy sources. Although these projects are still experimental or small-scale, they point to a scenario in which tequila producers could self-supply part of their energy using the waste they generate. In a world seeking to reduce waste and emissions, agave could offer solutions—turning its leaves and bagasse into electricity, biofuels, and even green chemicals. Agave bioenergy is still nascent, but it forms part of the innovative uses that expand this plant’s horizon beyond beverages.

Food and derivatives: agave syrup, inulin, and pulque

Agave also reaches the table in forms other than tequila or mezcal. One of its most popular derivatives in the last decade is agave syrup (agave nectar), a natural sweetener extracted primarily from blue agave and Agave salmiana. This syrup, with a sweet flavor and a low glycemic index, has been marketed as an alternative to sugar, gaining ground in health-oriented baking and organic products. Mexico has developed an important agave syrup industry for export: the global agave syrup/sweeteners market is estimated to have reached about $198 million in 2025 and continues growing at roughly 5–10% annually. Major consumers include the United States and Europe, where it is valued by vegans (as a substitute for honey) and by those seeking sweetness without glucose spikes. In addition to syrup, agave provides inulin, a soluble fiber with a prebiotic effect used as a dietary supplement to improve digestive health. Agave inulin, naturally present in the plant, has been incorporated into dietary and pharmaceutical products due to its benefits (supporting gut flora and helping regulate blood sugar levels). In this way, agave contributes not only to the enjoyment of beverages but also to functional nutrition.

“In addition to syrup, inulin is extracted from agave, a soluble fiber with a prebiotic effect used as a dietary supplement to improve digestive health. Agave inulin, naturally present in the plant, has been incorporated into dietary and pharmaceutical products due to its benefits (supporting gut flora and helping regulate blood sugar levels).”

Special mention goes to pulque, the ancestral “drink of the gods.” Unlike tequila and mezcal (distillates from cooked agave piñas), pulque is produced by fermenting aguamiel—the sweet sap extracted from pulque maguey (Agave salmiana and other species)—without distillation. White in color and viscous in texture, pulque was considered sacred by the Mexica and has been consumed since pre-Hispanic times. After a period of decline throughout the 20th century (when it became associated with being “outdated” or unhygienic), pulque has experienced a resurgence in recent years, especially among younger generations. Today, urban pulquerías are proliferating, offering “curados” (pulque mixed with fruits or flavors) and reviving the traditional experience, attracting curious millennials from Mexico and abroad. Pulque has even begun to be canned and bottled as pasteurized product for commercial sale; each month, thousands of cans of natural and flavored pulque are exported to markets in Europe, Asia, and the United States. Pulque’s renaissance shows how agave derivatives also carry cultural and gastronomic dimensions beyond the purely industrial. Alongside other regional foods (such as mixiotes, which use maguey leaves as wrappers, or traditional barbacoa cooked in pits with agave leaves), pulque and agave syrup keep agave present in Mexican diets and celebrations—while now also winning over new global palates.

Agave market in 2025: price, supply, and demand

The agave market has shifted dramatically in a short period. Just a few years ago, people talked about agave scarcity and extremely high prices; today, the landscape is the opposite: abundant raw material and falling prices. This volatility is due to the natural lag between planting and harvest (remember that agave takes several years to grow) and to a lack of planning amid a demand boom. Below, we examine the current situation of prices, supply, and demand for blue agave in 2025, as well as the implications for producers and the industry.

Oversupply and the collapse in blue agave prices

The price of Tequilana Weber blue agave—the main input for tequila—is going through a depressed phase after reaching historic peaks. In 2021–2022, during peak demand, agave prices in the field rose as high as 30–32 pesos per kilogram, an unprecedented level. Many producers entered the business drawn by these high prices. However, as massive new plantings reached maturity, the market became flooded with agave. By early 2024, the price had collapsed to about 5 pesos/kg (or even less): analysts reported that after peaking, agave fell to around 5 pesos per kilo by February 2024. The decline continued: by late 2024 in Los Altos de Jalisco, producers were receiving only 2.5 to 3 pesos per kilo. There were extreme cases of panic selling in which agave piñas were sold for 1 peso per kilo. In other words, within roughly three years, the value of blue agave fell by about 90%, undermining profitability for many farmers. This drastic oversupply recalls the bearish cycle of 2007–2010, when prices bottomed out near 2 pesos/kg before rebounding years later.

The consequences in the countryside are troubling. Thousands of small producers have seen 6–7 years of investment wiped out; some have chosen not to harvest (leaving agave piñas in the ground while waiting for better prices) or to abandon the crop due to the inability to cover costs. In Jalisco, the heart of tequila production, calls have risen for solutions: in late 2024, producers and local lawmakers demanded interventions to regulate prices and prevent a repeat of this crisis. Discussions include organizing the agave–tequila chain through agreements between tequila companies and farmers, implementing fixed-price supply contracts, and tighter planting controls to avoid such extreme surpluses. Experts note that agave’s cycle is one of boom and bust (oversupply followed by scarcity) every certain number of years, and they forecast that prices may not bottom out until 2026. That is, we may see one or two more years of depressed prices before an upward adjustment as the current excess is absorbed.

Ironically, this “crisis” stems from the industry’s success: never before has so much tequila been produced and sold. Large distilleries, to protect themselves, have begun cultivating their own agave at scale, reducing dependence on independent farmers. This brings a new balance of power: vertically integrated tequila companies secure supply and can better withstand price drops, while small agave growers suffer the volatility. In the short term, abundant agave could have a positive side for consumers: with cheaper inputs, more producers may launch 100% agave tequilas at accessible prices, taking advantage of excess supply. This already happened in the 2009–2010 cycle, when new tequilas entered the market at prices below the average for 100% agave tequilas, “democratizing” a segment that had been costly. However, not all brands are willing to lower their selling prices; many prefer to preserve the premium positioning achieved during years of scarcity. In any case, the underlying challenge is to establish mechanisms that mitigate these swings (e.g., strategic agave reserves, staggered planting planning, etc.) so that agave cultivation is economically sustainable for both boom and lean years.

Agave exports and global demand

Despite local oversupply, global demand for agave-derived products remains strong. Agave exports in the form of tequila continue at record levels with slight growth. As mentioned, in 2024 Mexico exported more than 400 million liters of tequila, surpassing the 400-million threshold for the first time after a small setback in 2023. Tequila is, by volume and value, the most important Mexican distilled spirit in international markets. The primary buyer remains the United States, which consumes around 83% of exported tequila.

In the U.S., tequila has posted annual growth rates higher than other spirits such as whiskey or vodka, even positioning itself as the top-selling spirit by value in 2022–2023 in the U.S. market. Other countries in the top 10 importers include Spain, Germany, Canada, the United Kingdom, Japan, France, Italy, Australia, and Colombia, reflecting a diversification of global taste for agave. In value terms, tequila exports totaled approximately $575 million USD in 2024, 5.8% more than the previous year. This revenue increase occurred despite the decline in raw material prices, suggesting brands kept retail prices stable and used the input-cost tailwind to improve margins or reinvest in marketing and innovation.

Mezcal, while smaller in volume, also has a growing presence abroad. More than 60% of mezcal produced is exported, primarily to the United States and Europe. However, in 2023 its exports declined slightly (~8%) due to global economic factors. Even so, interest in this artisanal beverage has not waned; mezcal continues to be valued as premium and distinctive, allowing it to compete in niches such as craft cocktail programs and specialized bars. As economic uncertainty eases, mezcal exports are expected to resume their upward trajectory, supported by its history and authenticity.

A promising aspect is the opening of new international markets for agave products. Countries such as China have begun authorizing formal tequila imports (with certification and denomination of origin), and there is growing interest in Asia-Pacific for Mexican spirits. The global cocktail boom has also incorporated tequila and mezcal into innovative recipes, boosting visibility. All of this may help absorb part of the excess agave production in the medium term. In fact, with raw material prices so low, some analysts suggest tequila companies could drive the creation of new products and formats for emerging markets, leveraging reduced agave costs. For example, more affordable 100% agave tequila lines or special high-volume editions could proliferate to attract consumers who previously could not access them.

In summary, agave supply and demand are locally unbalanced, but global demand for its derivatives (tequila, mezcal, syrup) remains strong. The challenge is how to align these dynamics. Eyes are on 2025–2026: if global consumption continues rising and planting moderates, the excess could dissipate without major disruptions. Meanwhile, actors across the agave–tequila chain are learning valuable lessons about agricultural planning and market management. The internationalization of tequila and mezcal is here to stay, and with it comes the responsibility to manage the agave market sustainably for the benefit of everyone involved—from the jimador in the field to the taster in a London bar.

Environmental impact and sustainable agave

The agave boom has brought environmental concerns. Rapid expansion of cultivation—especially blue agave—has caused deforestation in some regions of western Mexico. Documented cases include clearing and burning natural vegetation—even in protected areas—to open new agave plantations, affecting valuable ecosystems such as the Bosque La Primavera in Jalisco. Likewise, replacing traditional crops (corn, beans) with agave in certain areas has altered local biodiversity and could affect food security by dedicating fertile land to an industrial monoculture. Intensive agave monoculture carries other risks: soil loss due to erosion, reduced diverse vegetation cover, and greater vulnerability to pests and diseases. In fact, pests such as the agave weevil (Scyphophorus acupunctatus) and fungal diseases spread more easily across continuous expanses of agave, threatening plantation health. Controlling them often involves heavy agrochemical use, with potential impacts on soils and aquifers.

Water consumption is another factor. While agave is relatively drought-resistant, commercial crops sometimes use supplemental irrigation to accelerate growth, especially in early stages or in more arid regions. Agave’s water demand is lower than many other industrial crops, but it is not zero, and expansion into semi-arid zones must be planned to avoid overexploiting aquifers. Additionally, the tequila agroindustry generates substantial waste: vinasses (liquid residues from distillation) are highly loaded with organic matter and can contaminate rivers and soils if discharged untreated; bagasse and leaves, if not properly managed, emit odors and methane as they decompose. Historically, many factories discharged vinasses into streams or stored them in improvised ponds, creating contamination hotspots. Although environmental regulation has tightened, the challenge of comprehensive byproduct management remains.

In response, strong awareness around sustainable agave has emerged. Authorities, producers, and civil organizations are promoting more environmentally friendly practices throughout the value chain. Measures include reforesting and conserving native vegetation strips between agave fields to protect wildlife and ecosystem services; rotating crops or intercropping agave with other plants to prevent soil degradation; and promoting organic agriculture (without synthetic fertilizers or pesticides) in boutique agave plantations. In the mezcal sector, as mentioned, a green seal promotes sustainable production, ensuring that a number of agaves are planted for every wild plant harvested and that the environment is protected during distillation.

Scientific research also contributes solutions: biorefinery projects convert residues into energy and useful byproducts, reducing pollution loads. Several tequila distilleries have installed biodigesters that transform vinasses into biogas to fuel boilers, and they use bagasse as compost or as a substrate for edible mushrooms, creating a virtuous cycle. These initiatives not only reduce ecological footprints but also save costs and create new products. There are also efforts to conserve the genetic diversity of agaves: institutions such as INIFAP and universities maintain germplasm banks and carry out in vitro propagation of native varieties and species to preserve them against overexploitation and climate change. Preserving agave diversity (including wild species used for mezcal) is crucial for healthy ecosystems and future cultivation options.

The concept of sustainable agave also includes social and economic dimensions. The goal is long-term viability—avoiding both price collapses that ruin farmers and practices that exhaust natural resources. A comprehensive balance. The three pillars of sustainability—environmental, economic, and social—are embedded in the vision many companies and communities are adopting. Inspiring examples range from cooperatives of small organic agave producers to large tequila brands investing in conservation projects for the Mexican bat (a natural agave pollinator). All with the aim of ensuring that this national symbol is produced with respect for the environment and benefits for local communities. The path toward 100% sustainable agave is underway, and more voices are advocating for Mexico’s “blue gold” to shine without harming the land where it was born.

Agave and culture: a living legacy of Mexico

Beyond its economic importance, agave is deeply rooted in Mexican culture and identity. Since pre-Hispanic times, various maguey species (the common name for agave) have been considered sacred plants. Mexica mythology tells the legend of Mayáhuel, the goddess of maguey, whose myth explains the origin of pulque. In Indigenous worldviews, agave represented the earth’s generosity by providing drink, food, fibers for clothing, and construction material. For centuries, communities used agave in multiple ways: aguamiel from its leaves was fermented into pulque; its fibers were made into mecapales, sacks, and sandals; its spines served as needles; and its dried flowering stalks (quiotes) were used as beams or torches. Agave appears in codices and accounts as a plant of life and sustenance.

In the colonial and modern eras, agave remained present in traditions. Tequila and mezcal, developed from distillation introduced by the Spanish, became emblematic beverages of Mexican identity. So much so that UNESCO recognized the Agave Landscape and Ancient Industrial Facilities of Tequila (Jalisco) as a World Heritage Site in 2006. This site spans 34,658 hectares of blue agave fields and historic distilleries, symbolizing the intersection of nature and culture that agave represents. UNESCO highlighted how agave culture forms part of Mexico’s national identity—an expression of pride reflected in Jalisco’s reddish soils covered with bluish plants that, since the 16th century, have shaped the landscape and local economy. Visiting the tequila region today means touring centuries-old haciendas and distilleries, hearing mariachi music among the fields, and seeing how generations have lived around agave. Similarly, in Oaxaca and other mezcal-producing states, mezcal production is a craft passed down from parents to children, with rituals and traditional knowledge (such as using candles to guide fermentation or dances during milling) that enrich Mexico’s intangible cultural heritage.

“So much so that UNESCO recognized the Agave Landscape and Ancient Industrial Facilities of Tequila (Jalisco) as a World Heritage Site in 2006.”

Pulque, for its part, has its own place in popular culture. There was a time in the late 19th century when Mexico City had thousands of pulquerías—social gathering places and a cradle of songs, jokes, and popular sayings. Phrases like “No hay borracho que coma lumbre” and “Para todo mal, mezcal; para todo bien, también” reflect the wit associated with agave beverages. Although many traditional pulquerías closed after the Revolution, pulque culture is now resurging with an urban twist: young entrepreneurs open “neo-traditional” pulquerías with graphic art referencing Mayáhuel, organize pulque tours, and celebrate the “National Pulque Day” every February 2 to honor this millennia-old drink. At fairs and markets, it is common to find aguamiel (“agave honey”)

drunk fresh as a nutritious beverage, or flavored pulque curados such as oat, pine nut, celery, or fruit—showing agave’s gastronomic versatility.

We also cannot overlook agave’s presence in art and literature. Maguey has inspired ranchera songs, poems, and paintings. Iconography by Frida Kahlo, José Guadalupe Posada, and other artists depicts agave and mezcal in scenes of everyday life. In communities, agave appears in patron-saint festivals (for example, some celebrations in Oaxaca include a “dance of the maguey piña”) and in traditional medicine (agave juice and ashes were used as home remedies for certain ailments). Even the agave’s shape—its long, pointed leaves—has become an ornamental element in parks and gardens in Mexico and abroad, symbolizing resilience and exotic beauty.

In short, agave is far more than a raw material: it is a cultural symbol that embodies Mexico’s history, creativity, and spirit. Its cultivation and use have created unique landscapes, traditional trades, and artistic expressions. In 2025, as modern tequila and mezcal industries face market challenges and pursue sustainability, agave’s cultural roots remain as firm as ever. Every sip of tequila or pulque connects to centuries of tradition; every braided henequen fiber in a craft carries the heritage of our ancestors. Noble and generous, agave continues to unite past and future, countryside and city, economy and culture, around a plant that is truly a source of pride for Mexico.

The agave outlook in 2025 is one of contrasts and hope. We have a thriving tequila industry but an agricultural oversupply, an artisanal mezcal sector seeking balance between growth and authenticity, and a world rediscovering ancient agave uses in new ways (from bioplastics to trendy cocktails). Data confirm both achievements and challenges: record production and exports, but also price cycles that affect thousands of families. In response, the path forward is innovating with sustainability and honoring cultural roots. If Mexico can protect its agave landscapes, support producers, and promote smart ecological management, agave will continue thriving for the next hundred years—delivering economic prosperity, national identity, and green solutions. In the land of nopal and agave, this plant stands as a symbol of resilience: one that flourishes in arid soil, gives far more than it asks, and teaches that with long-term vision it is possible to harvest a future where tradition and development go hand in hand. Cheers to agave!

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Matrix

Carretera Atotonilco - La Barca #151, Milpillas, Atotonilco el Alto, Jalisco. 47775. México.
+52 391 917 1277

Matrix

Carretera Atotonilco - La Barca #151, Milpillas, Atotonilco el Alto, Jalisco. 47775. México.
+52 391 917 1277

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