The growing popularity of tequila among Chinese drinkers promises some big changes to the market. Texas economic expert Ray Perryman says you can expect the price to go up.
"Given the size of the market, particularly the potential of the market as their income levels rise, it could have a major global impact,” he says.
It may come back to quality. The Chinese consumer may only want “the good stuff.”
“Certainly the near-term response, in particular the response from the people who want a certain quality and an expectation about history and that sort of thing,” Perryman explains, “there will probably be some increase in price as the demand continues to rise.”
He says it's not that hard to grow agave and it can be grown in a lot of places, so supply should catch up quickly. Right now, tequila is produced in Mexico.
“The plant's not that hard to grow,” he says. “It grows in a lot of regions, in a lot of parts of the world. Consequently, you'll probably just see a fairly quick increase in supply.”