Rum Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Global Rum Market is segmented by Type (White, Gold, Dark, and Others); Category (Plain, Flavored, and Spiced); Distribution Channel (Off-Trade and On-Trade); and Geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa). The report offers market size and forecasts in value (USD million) for the above segments.

Rum Industry Overview

Rum Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia-Pacific
Largest Market: Europe
CAGR: 5.3 %

Major Players

Rum Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Rum Market Analysis

Global Rum Market is projected to register a CAGR of 5.3% during the forecast period, 2022-2027.

The global rum business has been driven by millennial customers' growing curiosity in the veracity of alcoholic beverages. Craft rum is also more popular among consumers than commercial rum because of its smooth flavor, premium quality, and genuine flavor. Craft spirits are often made on a small scale by the producers, who take an active role in the operation. Many artisan producers market their drinks by highlighting their country of origin (as nations like Barbados, The Philippines, Guyana, Cuba, and Jamaica are known for their premium rums), age, and organic certificates, which are generating significantly greater attention among customers. For instance, according to the Bacardi 2020 Cocktail Trends Report, consumers seek quality drinks with an interesting story, craft credentials, and origin. Furthermore, as per Bacardi's Global Brand Ambassador Survey (GBAS), more than 40% of bartenders chose dark rum as the most alluring spirit due to its higher quality.

Furthermore, the increasing number of product launches in the industry including a variety of flavors is attracting new consumers and boosting product demand. For instance, in September 2022, Radico Khaitan launched 1965 Spirit of Victory Lemon Dash Rum targeting white rum drinkers. Product promotions through social media and newspaper magazines have a positive impact on market growth at the global level. Ever since the pandemic, consumers are willing to expand their horizons and have moved beyond the traditional spirits, resultantly the premium rum category is expected to witness robust growth during the forecast period.

Rum Industry Segments

Rum is a liquor made by fermenting and then distilling sugarcane molasses or sugarcane juice. The global rum market is segmented by type, category, distribution channel, and geography. By type, the market is segmented into white, gold, dark, and other types. By category, the market is classified as plain, flavored, and spiced. By distribution channel, the market is segmented into off-trade and on-trade. It provides an analysis of emerging and established economies across the world, comprising North America, Europe, South America, Asia-Pacific, and Middle-East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Type
White
Gold
Dark
Other Types
By Category
Plain
Flavored
Spiced
By Distibution Channel
Off-Trade
On-Trade
By Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
United Kingdom
Germany
Spain
France
Italy
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

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Rum Market Trends

This section covers the major market trends shaping the Rum Market according to our research experts:

Innovations And Product Launches Are Expected To Drive The Market

Over the past few years, the category has seen a rapid rise in new trends as companies experiment to demonstrate the premium value of their products. Finishing the rum in unusual casks gives the manufacturers the opportunity to engage with other category consumers like Cognac or whisky drinkers and introduce them to the exquisite world of Cuban rum. For instance, in June 2022, Pernod Ricard India launched the super-premium rum ‘Cuba in a Bottle’ with Havana Club 7. It is a dark rum matured in ex-Bourbon barrels, that brings out the rich natural flavors of Cuba in a versatile manner. Similarly, in May 2022, Infinity Beverages LLC. unleashed the handcrafted Chippewa Valley’s first spiced rum that is produced from blackstrap molasses and infused with orange, vanilla, ginger, and clove.

In order to draw in customers, companies are also creating novel flavors. Most producers concentrate on creating rums with flavors of sweet, buttery caramel, tropical fruit, and vanilla that are followed by smoky licorice and molasses. This was made possible due to advancements in manufacturing technology. For instance, in March 2022, Diageo, a rum brand launched a limited-edition flavor, cherry vanilla introduced by Captain Morgan. The alcoholic beverage combines spiced rum's distinctive flavor with the sweetness of a dark cherry, hints of rich, creamy vanilla, and a dash of heat. Such innovations in productions of rum and introducing more new flavors in the market is attracting more consumers towards the market.

Global Rum Market : Consumption of Rum, United States, in thousand 9 liter cases, 2017-2020

Asia-Pacific Is The Fastest Growing Market

The main drivers of the Asia-Pacific market's growth include the region's expanding pub and bar culture, rapid urbanization, and rising purchasing power. The two countries with the biggest consumption of rum are India and the Philippines, which are also the top manufacturers of rum goods. For instance, the leading Filipino rum brand Tanduay, according to Drinks International's, sold more than 23.7 million 9-liter cases in 2021. Tanduay also ranked as the sixth best-selling spirit brand in the world across all categories. Further, India is witnessing a strong growth rate in the premium rum category. Countries such as Indonesia, Malaysia, and Thailand are witnessing an increase in rum consumption, owing to the growing tourism industry and travel retail in these countries. Moreover, urbanization and an increasing number of bars and pubs in countries like India, Thailand, Vietnam, China, and South Korea are indirectly expected to impact the market studied positively during the forecast period. For instance, according to Agriculture and Agri-Food Canada, the retail sales value of pubs and bars in China in 2021 accounted for about USD 8.04 billion. Hence, all such factors are boosting the growth of the overall market in the region.

Global Rum Market : Market Size (%), By Geography, Global, 2021

Rum Market Competitor Analysis

The rum market is moderately consolidated with the extensive production of the product in the Philippines and Asian countries like India. Additionally, the major players in the market are focusing on innovating and launching their products around the world. For instance, in August 2022, Bacardi launched a new limited edition premium variant rum, Bacardi Reserva Ocho Rye Cask Finish as the second installment in the Bacardi limited-edition cask finish series. Companies such as Bacardi and Company Ltd., Diageo PLC, and Pernod Ricard SA are focused on new product developments and increasing their exports to capture opportunities across untapped markets. A few major players present in the market studied are Bacardi and Company Ltd., Diageo PLC, Pernod Ricard SA, Tanduay Distillers, Inc., Westerhall Estate Ltd., and HOVI Trading Ltd.

Rum Market Top Players

  1. Bacardi Limited

  2. HOVI Trading Ltd

  3. Westerhall Estate Ltd.

  4. Tanduay Distillers, Inc.

  5. Diageo

*Disclaimer: Major Players sorted in no particular order

Rum Market Concentration

Rum Market Recent Developments

  • In August 2022, the French Artisanal Rum brand ‘Plantation’ introduced the varieties of Rum from the French discipline and the tropical passion of ancient craftsmanship in India. The two entrants of Plantation Rum i.e., 3 Stars and Original Dark were launched in Mumbai and Goa and will be launched across Maharashtra, Delhi, and Bangalore with Third Eye Distillery (TED) (Parent company of Stranger and Sons) as the official partner for the brand in India.
  • In August 2022, Hilton Head Distillery announced its upcoming launch of Panela and Solera Rum products at the distillery and retail locations across South Carolina. It announced that limited batches of each unique copper pot-distilled rum will be released.
  • In July 2022, The Bush Rum Co., a United Kingdom-owned firm launched its sustainable drink in India through a local partner, Mumbai-based Monika Alcobev Limited. The company has also brought in brands like Jose Cuervo, Templeton Rye whisky, and Rutini wines to the country.

Rum Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 White

      2. 5.1.2 Gold

      3. 5.1.3 Dark

      4. 5.1.4 Other Types

    2. 5.2 By Category

      1. 5.2.1 Plain

      2. 5.2.2 Flavored

      3. 5.2.3 Spiced

    3. 5.3 By Distibution Channel

      1. 5.3.1 Off-Trade

      2. 5.3.2 On-Trade

    4. 5.4 By Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

        4. 5.4.1.4 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 United Kingdom

        2. 5.4.2.2 Germany

        3. 5.4.2.3 Spain

        4. 5.4.2.4 France

        5. 5.4.2.5 Italy

        6. 5.4.2.6 Russia

        7. 5.4.2.7 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle East & Africa

        1. 5.4.5.1 Saudi Arabia

        2. 5.4.5.2 South Africa

        3. 5.4.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Bacardi and Company Ltd.,

      2. 6.3.2 Diageo PLC

      3. 6.3.3 Pernod Ricard

      4. 6.3.4 William Grant & Sons Ltd.

      5. 6.3.5 Westerhall Estate Ltd.

      6. 6.3.6 HOVI Trading Ltd

      7. 6.3.7 Tanduay Distillers, Inc.

      8. 6.3.8 Mohan Meakin Ltd.

      9. 6.3.9 Remy Cointreau Group

      10. 6.3.10 Cayman Spirits Co.

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

  9. 9. DISCLAIMER

**Subject to Availability
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Rum Market Research FAQs

The Rum Market is studied from 2018 - 2028.

The Rum Market is growing at a CAGR of 5.3% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2018 - 2028.

Europe holds highest share in 2021.

Bacardi Limited, HOVI Trading Ltd, Westerhall Estate Ltd., Tanduay Distillers, Inc., Diageo are the major companies operating in Rum Market.

Rum Industry Reports

In-depth industry statistics and market share insights of the Rum sector for 2020, 2021, and 2022. The Rum research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Rum report PDF.

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