Rum Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.30 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Europe |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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 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.
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.
Rum Industry Overview
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 Leaders
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Bacardi Limited
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HOVI Trading Ltd
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Westerhall Estate Ltd.
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Tanduay Distillers, Inc.
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Diageo
*Disclaimer: Major Players sorted in no particular order
Rum Market News
- 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. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Force Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 White
- 5.1.2 Gold
- 5.1.3 Dark
- 5.1.4 Other Types
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5.2 By Category
- 5.2.1 Plain
- 5.2.2 Flavored
- 5.2.3 Spiced
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5.3 By Distibution Channel
- 5.3.1 Off-Trade
- 5.3.2 On-Trade
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5.4 By Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Mexico
- 5.4.1.4 Rest of North America
- 5.4.2 Europe
- 5.4.2.1 United Kingdom
- 5.4.2.2 Germany
- 5.4.2.3 Spain
- 5.4.2.4 France
- 5.4.2.5 Italy
- 5.4.2.6 Russia
- 5.4.2.7 Rest of Europe
- 5.4.3 Asia-Pacific
- 5.4.3.1 China
- 5.4.3.2 Japan
- 5.4.3.3 India
- 5.4.3.4 Australia
- 5.4.3.5 Rest of Asia-Pacific
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Rest of South America
- 5.4.5 Middle East & Africa
- 5.4.5.1 Saudi Arabia
- 5.4.5.2 South Africa
- 5.4.5.3 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Bacardi and Company Ltd.,
- 6.3.2 Diageo PLC
- 6.3.3 Pernod Ricard
- 6.3.4 William Grant & Sons Ltd.
- 6.3.5 Westerhall Estate Ltd.
- 6.3.6 HOVI Trading Ltd
- 6.3.7 Tanduay Distillers, Inc.
- 6.3.8 Mohan Meakin Ltd.
- 6.3.9 Remy Cointreau Group
- 6.3.10 Cayman Spirits Co.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
9. DISCLAIMER
** Subject To AvailablityRum Industry Segmentation
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 | ||
| By Geography | Europe | United Kingdom |
| Germany | ||
| Spain | ||
| France | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| By Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| By Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| By Geography | Middle East & Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle East & Africa |
Rum Market Research FAQs
What is the current Rum Market size?
The Rum Market is projected to register a CAGR of 5.30% during the forecast period (2024-2029)
Who are the key players in Rum Market?
Bacardi Limited, HOVI Trading Ltd, Westerhall Estate Ltd., Tanduay Distillers, Inc. and Diageo are the major companies operating in the Rum Market.
Which is the fastest growing region in Rum Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Rum Market?
In 2024, the Europe accounts for the largest market share in Rum Market.
What years does this Rum Market cover?
The report covers the Rum Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Rum Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the sustainable practices being adopted by Rum manufacturers to reduce environmental impact?
The sustainable practices being adopted by Rum manufacturers to reduce environmental impact are a) Use of local ingredients b) Energy-efficient production methods C) Responsible waste management practices
Rum Industry Report
The global rum market, buoyed by a growing consumer affinity for diverse alcoholic beverages and a robust cocktail culture, is on the ascent, driven by demands for natural ingredient-based varieties and unique cocktail experiences. The market is witnessing significant traction in the premium sectors, where innovation and superior quality are pivotal in attracting new consumer demographics. A shift towards healthier, plant-based options and an interest in craft rum underscore a broader trend towards authenticity and premiumization in the industry. This evolution in consumer preference is bolstered by the expanding reach of online retail, offering unparalleled choice and convenience. Furthermore, the burgeoning craft and artisanal rum segment, celebrated for its distinct flavors and rich provenance, is increasingly appealing to millennials and Gen Z consumers, signaling a promising future for the market. Despite hurdles like regulatory challenges and counterfeit products, the rum market shines with prospects of innovation, diversification, and an eager audience for authentic, high-grade, and artisanal rum offerings, as highlighted in recent industry analyses by Mordor Intelligence™. Get a sample of this industry analysis as a free report PDF download.
