USD 12.94 billion
Rum Market Size, Share, Growth Analysis, By Products(Dark and Golden Rum, White Rum, Flavored and Spiced Rum), By Distribution Channels(Offline and Online), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG30E2019 |
Region:
Global |
Published Date: April, 2024
Pages:
198
|Tables:
61
|Figures:
78
Rum Market Insights
Global Rum Market size was valued at USD 12.94 billion in 2022 and is poised to grow from USD 13.64 billion in 2023 to USD 20.77 billion by 2031, at a CAGR of 5.4% during the forecast period (2024-2031).
The global rum market is anticipated to grow owing to the increased demand for premium goods. Sales of the products are anticipated to increase even more as millennials' desire in distinctive and genuine alcoholic beverages grows. In the market for spirits, rum is one of the alcoholic beverages that is most popular. Global demand for premium spirits is increasing as per capita income rises in both developed and developing economies. For Sugarcane juice or fermented sugarcane molasses are the main ingredients in rum, a distilled alcoholic beverage. It has 40% ABV (minimum 57.7% ABV in overproof), sugarcane essential oil, and natural tastes. The expansion of nightclubs, pubs, and bars as well as other establishments is anticipated to fuel market growth. These factors include the expanding urban population, rising per capita income, customer readiness to pay more for premium brands, and all of the aforementioned. Major contributors to the market for alcoholic drinks are nations like India and the Philippines, where the product is manufactured and consumed in large quantities. Producing flavoured rum is being encouraged by consumers' growing preference for spiced and flavoured varieties. One of the main factors driving the market's quick expansion is the introduction of new products.
US Rum Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Dark and Golden
Fastest Growth
Flavored and spiced
Growth Rate
5.4% CAGR
Global Rum Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Rum Market Segmental Analysis
Global Rum Market is segmented on the basis of Products, Distribution Channels, And geography. By Products, the market is segmented into Dark and Golden Rum, White Rum, Flavored and Spiced Rum. By Distribution Channels, market is segmented into Offline and Online. By region, the market is classify into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Rum Market Analysis by Products
The dark and golden rum segment dominated the global market. Several aged rums fall under the "dark" classification; these have a richer flavour and are typically sipped plain or over ice. Millennial consumers are increasingly in demand for aged dark rum because of its pleasant flavour. It provides extra depth to drinks and is aged in oak barrels. Bacardi Ltd. has been concentrating on the premiumization of rum/dark spirits by consistently investing in its Ocho, Cuatro, and Diez portfolio.
Rum with flavours and spices is anticipated to experience the strongest CAGR growth during the forecast period. Demand for flavoured and spicy varieties is rising among consumers. Also, this segment's market expansion is anticipated to be fueled by prominent firms' novel product offerings, which are drawing in new clients and increasing consumption. Since they offer a distinctive flavour and potent spices, flavoured and spiced rums are frequently preferred in cocktails.
Rum Market Analysis by Distribution Channels
In terms of revenue, the offline trade segment held the largest market share in 2022 and is anticipated to expand rapidly over the projected period. The segment is anticipated to gain a significant market share in the years to come thanks to reasons such as easy access to spirits at supermarkets/hypermarkets, liquor stores, and specialty shops as well as increased customer willingness to purchase via these channels. The launch of new products by a number of market participants at supermarkets and hypermarkets will further support the segment's growth.
During the course of the projected period, the internet trading segment is anticipated to increase more quickly than any other. To increase their consumer base, major suppliers concentrate on selling their products through e-commerce sites. Due to the simplicity of online shopping and doorstep delivery, consumer interest in doing their shopping online has significantly expanded over the past several years. In the last two years, the epidemic has accelerated this trend even further. These elements should all contribute to the segment's growth in the foreseeable future.
Global Rum Market Size By Product Type
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Rum Market Regional Insights
The Asia-Pacific region is the largest consumer and producer of Rum globally. Because to its vast population, rising disposable income, and rising popularity of rum among the younger generation, Asia Pacific held the greatest market share of almost 40% of worldwide sales in 2021 and is predicted to grow at a significant growth rate during the forecast period. India and the Philippines, which are both significant producers and consumers, make significant contributions to this expansion. According to the corporation, India is one of Bacardi's fastest-growing regions, with a 30% increase in business in 2021.
North America is anticipated to be the fastest-growing market for rum. The market is expanding as a result of the presence of numerous international producers, increasing demand for premium rums, and rising use of flavoured and spiced rums in mixed drinks. Sales of high-end spirits in nations like the U.K. and France are being driven by the demand for rum among younger consumers in Europe as well as a focus on focused marketing and product innovation.
Global Rum Market Size By Region
- Largest
- Fastest
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Rum Market Dynamics
Rum Market Drivers
Rising popularity of cocktails
- Cocktails are mixed alcoholic drinks that are typically made with one or more types of spirits, including rum. The popularity of cocktails is on the rise, and they are becoming increasingly popular among younger consumers. Rum is a key ingredient in many popular cocktails, such as Mojitos, Daiquiris, and Piña Coladas. These cocktails are enjoyed by consumers all around the world, and their popularity is driving the demand for rum. The availability of a wide variety of rum flavors is also contributing to the popularity of cocktails. Flavored rums, such as coconut, pineapple, and mango, are gaining popularity among consumers, and are often used in cocktail recipes. This trend is driving the demand for flavored rums, which is contributing to the growth of the global rum market. In addition, the rising trend of mixology is also driving the popularity of cocktails. Mixology is the art and science of creating cocktails, and it involves using high-quality spirits and ingredients to create unique and flavour full drinks. The growing interest in mixology is leading to an increase in demand for premium spirits, including premium rum, which is contributing to the growth of the global rum market.
Growing popularity of flavored rum
- Flavored rum is rum that has been infused with various flavors, such as coconut, pineapple, mango, and other fruit flavors. Flavored rum has gained popularity among consumers, particularly among younger consumers who are looking for unique and innovative flavors. One of the main factors driving the popularity of flavored rum is the rising trend of mixology. Mixology is the art and science of creating cocktails, and mixologists are always looking for new and exciting ingredients to incorporate into their cocktail recipes. Flavored rum provides mixologists with a wide range of unique and innovative flavors to work with, which is driving the demand for flavored rum. Another factor driving the popularity of flavored rum is the increasing demand for premium spirits. Consumers are willing to pay more for high-quality, premium products, and this trend is evident in the rum market as well. Premium flavored rums, such as those made with high-quality ingredients and aged for longer periods, are becoming increasingly popular among consumers.
Rum Market Restraints
High taxation
- Taxes on alcohol, including rum, can be significant, which can increase the price of the product for consumers. This, in turn, can impact demand and sales of rum in the market. High taxation can also make it difficult for rum manufacturers and distributors to price their products competitively, as they need to factor in the tax burden. This can impact the profitability of the industry and limit its growth potential. high taxation can lead to illegal or informal sales of rum, such as bootlegging, which can negatively impact the formal rum market. These illegal sales can result in lost revenue for the government and legitimate rum manufacturers, and can also pose health and safety risks to consumers. However, it is important to note that taxation policies can vary widely from country to country. Some countries may have lower taxes on alcohol, which can benefit the rum market in those regions. Additionally, there may be government initiatives or policies that aim to reduce the tax burden on the alcohol industry, which can be a positive development for the rum market.
Competition from other alcoholic beverages
- The competition can be particularly intense in markets where consumers have a wide range of choices and preferences for alcoholic beverages. This can make it difficult for rum manufacturers to differentiate their products and stand out in the market. the growing trend of consumers opting for healthier lifestyles and low-alcohol beverages can impact the demand for rum. Consumers may choose lower-alcohol beverages, such as beer or wine, over rum, which can impact sales and growth in the market. Another factor that can impact competition in the rum market is the availability of alternative beverages that offer similar experiences to consumers.
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Rum Market Competitive Landscape
Global Rum Market will continue to rise as a result of major industry players spending a lot of money on R&D to increase their product offerings. Market participants are engaging in a wide range of strategic initiatives to improve their presence in addition to key industry changes like new product releases, contractual agreements, mergers and acquisitions, higher investments, and cooperation with other organizations. The rum market industry's rivals must offer products that are reasonably priced to survive and grow in a market that is becoming more competitive and expanding.
Rum Market Top Player’s Company Profiles
- Bacardi Limited
- Diageo plc
- Pernod Ricard SA
- Tanduay Distillers, Inc.
- Demerara Distillers Limited
- Admiral Rodney
- Appleton Estate
- Captain Morgan
- Cruzan Rum Distillery
- Flor de Caña
- Gosling's Rum
- Havana Club International
- Mount Gay Distilleries
- Rhum J.M
- Ron Barceló
- Ron del Barrilito
- Ron Matusalem
- Saint James Distillery
- The West Indies Rum Distillery
- Worthy Park Estate
Rum Market Recent Developments
- In March 2024, BrewDog Distilling Co., announced the official launch of its DUO White Rum, which will join its existing rum SKUs including DUO Spiced Rum and DUO Spiced with Caramelised Pineapple Rum.
- In March 2024, in a strategic move to broaden its portfolio, Global Brands Ltd announced its latest partnership with award-winning RedLeg Spiced Rum. This partnership will see Global Brands representing RedLeg in the UK major grocery and cash & carry channels, marking the beginning of Global Brands incorporating established third-party brands into its business model.
- In January 2024, Platinum Equity announced the acquisition of premium rum blending specialist E&A Scheer, the largest global blender and vendor of premium rum in bulk, from The Riverside Company.
Rum Key Market Trends
- Increasing consumer demand for proprietary flavours will fuel market expansion.
People have started to explore new forms of entertainment, such as hanging out at nightclubs, bars, pubs, and lounges, as the urban population has grown and disposable money in emerging economies has increased. It is a crucial role in raising sales of alcoholic beverages by young people because of the ease of access to energy consumption, the impact on social media, and alcohol. Patented flavours and increasing flavour demand will both play a significant role in driving market expansion for rum. Consumers' overwhelming predilection for internet shops has a big impact on how much money the rum business generates. Due to its impact on customers' purchasing power, income plays a significant role in determining alcoholic beverage sales. The United Nations reports that middle-class consumers have increased in recent years. Customers in this category are more likely to enjoy better lives when disposable money for food and beverages rises. The rise of the global rum market will be significantly aided by the growing demand for premium rums. Consumer demand for premium rum is rising as both developed and emerging countries' per capita incomes rise. Higher-quality rum can be identified by its brand, flavour, and authenticity. To meet the rising demand for rum of extraordinary quality and flavour, the market is overrun with many producers who provide a wide variety.
Rum Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global rum market analysis, the market growth is driven by factors such as rising demand for premium and flavored rums, the growing popularity of cocktails, and the increasing consumer preference for alcoholic beverages. However, the market also faces several challenges and restraints, such as high taxation, competition from other alcoholic beverages, and strict government regulations. The market is characterized by the presence of both international and regional players, with a large number of small and medium-sized manufacturers operating in the market. The market is also highly fragmented, with players competing on the basis of price, quality, innovation, and marketing strategies. The global rum market is expected to continue to grow over the coming years, driven by factors such as the rising demand for premium and flavored rums, the growing popularity of rum-based cocktails, and the increasing consumer preference for alcoholic beverages. However, the market also faces several challenges, such as high taxation, intense competition from other alcoholic beverages, and strict government regulations. Overall, the global rum market is a dynamic and competitive market with significant growth potential. Players in the market need to adopt innovative marketing strategies, develop unique flavors and formulations, and target specific consumer segments to compete effectively in the market.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 12.94 billion |
| Market size value in 2031 | USD 20.77 billion |
| Growth Rate | 5.4% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
Rum Market Recent Developments
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Rum Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Rum Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Rum Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Rum Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Rum Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Rum Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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