Global Rum Market Size (2024 to 2029)
The global rum market size was worth USD 16.35 billion in 2023 and the global market size is further estimated to grow at a CAGR of 5.5% from 2024 to 2029 and be worth USD 22.54 billion by 2029 from USD 17.25 billion in 2024.
CURRENT SCENARIO OF THE RUM MARKET
The rum market saw a resurgence in recent years. Customers appear to be eventually showing up to the sugarcane-based spirit, with travel retail propelling new or additional interest and premium expressions getting tired. According to the 2023 trends report by DoorDash, it experienced a 317 per cent jump in rum orders in 2023 in its online ordering and food delivery platform which is in second position after whiskey at a 648 per cent rise. Moreover, coconut, spiced, and white rum came on top in terms of orders. In 2023, the best-selling rum in 2023 was Tanduay with 23.4 million nine-litre cases, followed by Bacardi with 20.6 million, and then by Captain Morgan with 12.1 million. Hence, the market is presently on an upward trajectory.
MARKET DRIVERS
The rising trend of recognition of premium rum is propelling the growth of the rum market. In the last few years, it witnessed an extremely interesting evolution to a luxury and sophistication category from a spiritual drink which was conventionally related to accessibility. The trendiness or escalating consumption of rum is not a lonely phenomenon, it is the outcome of a change in customer choices, particularly among younger drinkers, who are searching for richer and more diverse taste experiences. As more consumers uncover the variety and complications that rum provides, the demand for superior offerings keeps rising. Therefore, this shift is driving the market forward. According to a study published by PennState Extension, about 56 per cent of respondents aged between 22 and 34 consumed flavoured vodka, 49 per cent chose flavoured tequila, and 42 per cent preferred flavoured rum.
MARKET RESTRAINTS
The growth rate of the rum market is slowed down by supply chain interruptions. This consists of a limited supply of essential ingredients. Moreover, the shortage of packing components like aluminium and carbon dioxide, and reduced the production of raw materials involving hops caused by summer droughts and heightening energy prices.
Another factor affecting the expansion of the market is cost-of-living pressure and shifting drinking patterns. Several customers are choosing to come down to moderate drinking to reduce some pressure on their disposable income along with changing lifestyle options.
SEGMENTAL ANALYSIS
Global Rum Market Analysis By Product Type
· Golden
· Dark
· White
· Spiced
White rum is the most popular category in this market. The Pina Colada, the Mojito, the Daiquiri, and the Cuba Libre (lime, coke, and rum) are some of the most prevalent drinks. It is significant that while the rum segment was customarily led by white, gold and flavoured types, as of now the market share is progressively captured by aged offerings. Whereas, the dark rum segment is also witnessing a surge in its sales in the last few years. For instance, in April 2024, Rampur Distillery reported that at the IAADFS summit at the Palm Beach County Convention in America, it introduced The Kohinoor Reserve Indian Rum.
Global Rum Market Analysis By Distribution Channel
· On-trade
· Off-trade
The off-trade segment gained the maximum share of the rum market. The rising sales of rum through this distribution are fuelling the segment’s market share. Likewise, in May 2023, it was reported that both off- and on-trade experienced an increase in sales of dark rum, with customers preferring it against expensive single malt Scotch. On the other hand, the on-trade segment holds a significant share. For instance, the total rum category is elevated by 83.5 per cent in 2023 at Malt Trade. It is the on-trade division of Master of Malt. Moreover, on-trade in Great Britain registered sales of 1.1 billion pounds or 1.4 billion dollars in the last 12 months to December 2023, surpassing whisky for the straight second years.
REGIONAL ANALYSIS
The Asia Pacific is commanding the rum market and is expected to keep its growth trajectory during the forecast period. The region is one of the biggest consumers in the world. India, Philippines, China, and Australia are the key regional markets. Recently, Indian rums saw a rapid rise due to the growth of premium options. This marks a major change in the spirits market worldwide which is attracting domestic as well as international consumers and enthusiasts. The Philippines is another market holding more than 18 per cent of the region’s market share.
RECENT MARKET DEVELOPMENTS
· In September 2024, Bacardi introduced the “Bacardi Mango Chilli” which is its latest flavour in India. It mixes the spice of chilli and the sweetness of mangos. For this launch, the company collaborated with Radhika Seth who is a content creator and influencer on Instagram.
· In September 2024, Amrut Distilleries, a Bengaluru-based alcobev giant, press released the introduction of Bella. It is a matured and jaggery-distilled single rum.
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