The overall size of the global rum market, in terms of value, is estimated at USD 17.4 billion for the year 2023. As per the FMI market analysis report, it is anticipated to develop at an annual growth rate of 3.5% from 2023 to 2033. This market report further predicts that the total value of rum sold per year in 2033 to reach USD 24.5 billion.
Worldwide, rum breweries and industry growth is predicted to be fueled by the growing consumer demand for different types of alcoholic beverages. Further, sales of rum are anticipated to increase even more due to millennia's increased interest in different and unusual types of cocktails. The establishment of more restaurants and bars, serving hard drinks to their customers, is regarded to play a key role in this too.
The fact that rum contains natural tastes, sugarcane essential oil, and an alcohol content of 40%, gives it an edge over other popular alcoholic beverages. The market is significantly influenced by nations in South Asia and Latin America, where the product is manufactured and consumed in large quantities.
Presently, rum and other alcoholic drinks breweries around the world are struggling with more than just quantity and quality problems. The premium and super premium rum categories, which have seen great growth earlier and maintained good profit margins, have been under intense market pressure nowadays. Because economies of scale are less significant in such federally controlled industries, emerging rum providers may more easily penetrate the market to compete.
Bacardi, headquartered in Cuba for ample sugarcane production, is quite famous and is the leading rum brand in the alcohol market. By consistently making investments in its Ocho, Cuatro, and Diez product portfolio, Bacardi Limited has been concentrating on innovation in premium rum and black spirits. The desire for flavored and spicy varieties is rising for which leading firms are gaining new clients and increasing consumption fueling the industry's expansion.
The market's development is also expected to be aided by the progress of several market participants to channel their products through supermarkets and hypermarkets. Meanwhile, some popular brands are concentrating on selling their packaged rum bottles through e-commerce sites to increase their consumer base and cover.
| Attributes | Details |
|---|---|
| Rum Market Share (2022) | USD 16.8 billion |
| Rum Market Size Value (2023) | USD 17.4 billion |
| Rum Market Size Value (2033) | USD 24.5 billion |
| Rum Market Growth Rate (2023 to 2033) | 3.5% |
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In 2018, the gross value of the total rum sold globally was calculated to be around USD 14.9 billion. From the previous market performance report figures, FMI analyzed the sales of rum witnessed a year-on-year growth rate of 3% during the years from 2018 to 2022. The pandemic had a severe impact on the rum business internationally since lockdowns were implemented in most nations in 2020 and 2021.
Long periods of closure of liquor outlets and establishments including bars, pubs, and nightclubs resulted in poor sales of all hard liquors. Further, due to sugarcane supply chain disruptions and decreased demand from trade channels, the pandemic years had a blowing impact on the whole rum business.
Emerging Trends in the Global Rum Market
Rum is considered one of the most popular alcoholic beverages in the spirits category around the world for a very long time. Moreover, the consumption quantity of all alcoholic drinks, including rum, is rising globally as a result of rising per capita income nowadays. In Asia Pacific countries, there has been a profound cultural shift in recent years allowing higher sales of rum and other liquor types.
Rum manufacturers are now being encouraged to make flavored rum as consumer preference for spiced and flavored varieties is growing significantly. Among the main causes of the rum market's explosive expansion is the introduction of products with new flavors and tastes. Customers' growing willingness to spend more for premium brands at nightclubs, pubs, and bars is what drives the emergence of new market players.
More than 45% of the total income generated by the global rum industry in 2022 came from the dark and light or golden rum category, which contributed the most. The dark or black rum category includes several aged rums, which have a stronger flavor and are typically sipped plain or over ice. The market statistics for sales of rum around the world record the year-on-year growth dipping and is anticipated to register a CAGR of 2.8% over the forecast years. However, owing to its mellow flavor, aged black rum is quite popular and is projected to remain a crucial segment in the coming days as well.
On the other hand, the light or golden rum segment is projected to register a higher CAGR of 4% over the forecast years. Interestingly, the FMI market report projects the annual sales of the flavored rum segment to be growing at an even higher rate during the projected period. Additionally, the flavored rum segment is projected to witness new market prospects in the coming days because of the emerging cocktail culture.
Almost 80% of the revenue from sales of rum came from the offline distribution channel segments in the year 2022. Most nations have regulations in place for controlling alcoholic drink consumption for which this segment is anticipated to expand considerably over the forecast period.
Rums are purchased by consumers preferably at liquor shops, and specialty stores, which are predicted to retain the segment's dominance. However, online sales of rum are an emerging trend in some localities that may help the segment to gain a sizable market share in the future.
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Globally, the United States is the leading country for sales and consumption of all types of liquor and hard drinks in the world. As per the market report, the demand for rum in the United States is calculated to be around USD 4.7 billion in 2023. The United States rum market is expanding remarkably due to the contribution of several international manufacturers that have earned the trust of consumers over the years.
Meanwhile, Canada is emerging as a significant supporting market for rum producers and industry players based in the United States. As per the market statistics report, the demand for rum in the Canadian market is projected to grow by 2.8% through 2033.
With a share of more than 30% of the worldwide sales of rum in 2022, Europe is predicted to continue to develop considerably between 2023 and 2033. As a result of its drinking culture, and favorable climatic conditions, most nations are famous for the production and consumption of whisky. However, in recent years, there has been witnessed a growing number of rum aficionados among the younger demographic propelling the European rum market.
The overall demand for rum in Germany is anticipated to increase at a higher CAGR of about 2.4% within the European Union. Rum companies in the region are boosting their visibility by engaging in mergers and acquisitions and extending their sales networks. For example, the Seychelles-based Trois Frères Distillery stated in March 2022 that its rum is soon available in 11 additional regions. The brewery anticipates that this rollout may aid in increasing its visibility throughout the continent of Europe.
The overall sales of rum in China are anticipated to grow at a staggering 6.1% annual rate from 2023 to 2033. The overall China rum market is anticipated to reach a market size of USD 5.4 billion by the end of this forecast period. Increased sales of premium rums are anticipated to be key factors in strengthening the market.
It is anticipated that the sales of rum in the Asia Pacific region might reach USD 3.2 billion by the end of this decade. With the production of rum in nations like Australia, India, and Japan leading the way, it is anticipated to become a leading consumer. Moreover, as per the FMI market report, the demand for rum in Japan only can grow at an annual rate of 1.8%.
Fermentation and alcohol brewing is an age-old process and there are huge numbers of regional rum manufacturers across the countries. Over the years these local rum manufacturers have remarkably increased their production capacity and made the overall market highly competitive. Moreover, with the adoption of modern brewing such regional players have increased the quality of the product and have acquired a prominent market position.
So, to increase their reach, some leading rum market players are shifting their business and marketing channels to internet platforms. Additionally, some of the leading rum market players have adopted the strategy of acquiring and partnering with regional players to penetrate the market swiftly. For example, Pernod Ricard Company bought the majority of La Hechicera, which is a Colombian producer of ultra-premium rum, in the year 2021. The former company's product portfolio and market reach are anticipated to be strengthened by this purchase.
According to the firm, Bacardi saw a 30% increase in its rum sales in India in 2021, making it one lucrative market. A variety of rums from the French discipline and the tropical passion of centuries-old Indian workmanship were presented in August 2022 by the French artisanal rum firm ‘Plantation.’ Following this, the two Plantation Rum contenders, 3 Stars, and Original Dark were introduced in Mumbai and Goa, respectively. The Third Eye Distillery or TED, the parent firm of Stranger and Sons, may serve as the official partner for the Company in the Indian market.
Real Rum Canned Cocktails were successfully introduced in 2020, and in 2021, Bacardi expanded the line by including 3 more flavors and a combination pack. BACARDI Bahama Mama, BACARDI Mojito, and BACARDI Sunset Punch are indeed the new drinks introduced by the Company during this period. Earlier in 2020, the Company released BACARDI Lime & Soda, BACARDI Limon & Lemonade, and BACARDI Rum Punch to attract new customers.
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The worldwide rum market is anticipated to attain a value pool of USD 17.4 billion in 2023.
The worldwide rum market is anticipated to surge at a CAGR of 3.5% from 2023 to 2033.
United States rum market is expected to reach a value pool of USD 4.7 billion by the end of 2023.
China’s rum market is anticipated to augment at a CAGR of 6.1% from 2023 to 2033.
The dark rum segment is anticipated to remain preferred in the rum market throughout the forecast period.
1. Executive Summary | Rum Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. White Rum 5.2. Light/Gold Rum 5.3. Dark Rum 5.4. Spiced Rum 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Nature 6.1. Organic 6.2. Conventional 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 7.1. Business to Business 7.2. Business to Consumer 7.2.1. Hypermarkets/Supermarkets 7.2.2. Specialty Stores 7.2.3. Online Retail 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Diageo PLC 16.2. Pernod Ricard SA 16.3. William Grant & Sons Ltd. 16.4. Remy Cointreau Group 16.5. Westerhall Estate Ltd. 16.6. Cayman Spirits Co. 16.7. Mohan Meakin Ltd. 16.8. Halewood International Holdings PLC 16.9. Suntory Holdings Limited 16.10. Arehucas 16.11. Elements Eight Company Ltd 16.12. Bacardi Limited 16.13. Edrington 16.14. Radico Khaitan Limited 16.15. Davide Campari-Milano S.p.A. 17. Assumptions & Acronyms Used 18. Research Methodology
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