GVR Report cover Rum Market Size, Share & Trends Report

Rum Market Size, Share & Trends Analysis Report By Product Type (Dark & Golden Rum, White Rum, Flavored & Spiced Rum), By Distribution Channel (Offline Trading, Online Trading), By Region, And Segment Forecasts, 2022 - 2028

  • Report ID: GVR-4-68039-924-1
  • Number of Pages: 77
  • Format: Electronic (PDF)

Report Overview

The global rum market size was valued at USD 11.26 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2022 to 2028. The rising demand for premium products is expected to drive the industry globally. The growing interest of millennials in unique and authentic alcoholic drinks is expected to further boost product sales. Rum is one of the highest consumed alcoholic drinks in the spirits category. Increased per capita income in developed as well as developing economies is augmenting the demand for premium spirits worldwide.

U.S. rum market size, by distribution channel, 2020- 2028 (USD Billion)

The COVID-19 pandemic adversely affected the market globally as multiple countries imposed lockdowns in 2020. Places like restaurants, bars, pubs, and nightclubs were closed for long durations, which led to low sales of alcoholic beverages. The pandemic affected the overall alcoholic beverages industry by disrupting the supply chain and lowering demand from trading channels like supermarkets and hypermarkets, convenience stores, specialty stores, and liquor stores. Major suppliers in the market shifted their focus to online channels to expand their reach.

Rum is a distilled alcoholic drink made from sugarcane juice or fermented sugarcane molasses. It contains natural flavors, essential oil of sugarcane, and 40% ABV (minimum 57.7% ABV in overproof). Factors such as the growing urban population, rising per capita income, consumers’ willingness to pay for premium brands and the proliferation of places like nightclubs, pubs, and bars are expected to propel the market growth. Countries like India and the Philippines, where the product is produced and consumed heavily, are major contributors to the alcoholic beverages market.

Growing inclination toward spiced and flavored variants is encouraging producers to produce rum in the flavored category. New product launches are one of the prime reasons for the rapid growth of the market. Cocktail culture is also opening new market opportunities in the flavored category. For instance, in 2021, Pernod Ricard acquired a majority stake in La Hechicera, a Colombian ultra-premium rum company. The acquisition is expected to help the firm strengthen its product portfolio.

After the successful launch of Real Rum Canned Cocktails in 2020, Bacardi added three new flavors to the range, along with a variety pack, in 2021. The new offerings are BACARDÍ Bahama Mama, BACARDÍ Mojito, and BACARDÍ Sunset Punch. BACARDÍ Lime & Soda, BACARDÍ Limon & Lemonade, and BACARDÍ Rum Punch were launched in 2020. Premium rums in unique flavors have been witnessing higher demand over the last few years and are expected to drive overall market growth over the forecast timeline.

Distribution Channel Insights

The offline trading segment accounted for the highest revenue share of over 75% in the global market in 2021 and is expected to grow significantly over the forecast timeline. Easy availability of spirits at supermarkets/hypermarkets, liquor stores, and specialty stores, as well as greater consumer inclination to buy from these channels, are factors expected to help the segment capture a major market share in the years to come. Product launches by several market players at supermarkets/hypermarkets will also augment the segment’s growth.

The online trading segment is expected to be the faster-growing distribution channel over the forecast period. Major suppliers focus on e-commerce portals for selling their products to expand their customer base. Over the last few years, consumer inclination toward online shopping has increased drastically, owing to the convenience of shopping and doorstep delivery. The pandemic has further pushed this trend in the past two years. All these factors are expected to drive the segment’s growth in the near future.

Product Type Insights

The dark and golden rum segment contributed the largest share of over 45% of the global revenue in 2021. Several aged rums fall into the dark category; these have a stronger flavor and are usually consumed neat or with ice. Aged dark rum is witnessing higher demand from millennial consumers due to its smooth taste. It is aged in oak barrels and adds more depth to cocktails. Bacardi Ltd has been focusing on the premiumization of rum/dark spirits by continuously investing in its Ocho, Cuatro, and Diez portfolio.

Global rum market share, by product type, 2021, (%)

Flavored and spiced rum is estimated to expand at the fastest CAGR over the forecast period 2022 to 2028. Consumers are increasingly demanding flavored and spiced variants. Moreover, innovative product offerings in this category by key companies are attracting new customers and boosting consumption, which is expected to drive the segment’s market growth. Flavored and spiced rums are highly preferred in cocktails as these provide a unique taste and intense flavors.

Regional Insights

Asia Pacific accounted for the largest market share of over 40% in global revenue in 2021 and is expected to expand at a substantial growth rate from 2022 to 2028, owing to the presence of a huge population, rise in disposable income, and increasing popularity of rum among the younger generation. Countries like India and the Philippines contribute majorly to this growth, as they are major producers and consumers. In 2021, Bacardi registered a 30% growth in its business in India and the country is one of its fastest-growing markets, as per the company.

North America is estimated to be the fastest-growing market for rum from 2022 to 2028. The presence of a large number of global producers, rising demand for premium rums, and an increase in the consumption of flavored and spiced rums in cocktails are factors propelling the market growth. In Europe, the demand for rum among younger consumers coupled with a focus on targeted marketing and product innovation is driving the sales of high-end spirits in countries such as the U.K. and France.

Key Companies & Market Share Insights

The global rum market is competitive and a number of global players play a vital role in market growth. Companies in the industry are strengthening their presence by launching new products, through mergers & acquisitions, and by expanding their distribution channels. For instance, in March 2022, Trois Frères Distillery, based in Seychelles, announced the launch of its rum in 11 new markets. The launch is expected to help the distillery build its presence in the European region.

Some prominent players operating in the rum market include:

  • Bacardi Limited

  • Davide Campari-Milano N.V.

  • Demerara Distillers Ltd.

  • Diageo Plc

  • LT Group, Inc.

  • Nova Scotia Spirit Co.

  • Pernod Ricard SA

  • Suntory Holdings Ltd

  • William Grant & Sons Ltd

  • Mohan Meakin Limited

Rum Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 11.77 billion

Revenue forecast in 2028

USD 16.08 billion

Growth rate

CAGR of 5.2% from 2022 to 2028

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product type, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Germany; U.K.; France; Russia; Italy; China; Philippines; India; Brazil; Argentina; South Africa

Key companies profiled

Bacardi Limited; Davide Campari-Milano N.V.; Demerara Distillers Ltd.; Diageo Plc; LT Group, Inc.; Nova Scotia Spirit Co.; Pernod Ricard SA; Suntory Holdings Ltd; William Grant & Sons Ltd; Mohan Meakin Limited

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global rum market report based on product type, distribution channel, and region:

  • Product Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Dark and Golden Rum

    • White Rum

    • Flavored and Spiced Rum

    • Others

  • Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)

    • Offline Trading

    • Online Trading

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe
      • Germany

      • U.K.

      • France

      • Russia

      • Italy

    • Asia Pacific

      • China

      • Philippines

      • India

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • South Africa

Frequently Asked Questions About This Report

gvr icn

GET A FREE SAMPLE

gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.

gvr icn

NEED A CUSTOM REPORT?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

esomar icon

ESOMAR certified & member

D&B icon

Leading SME award by D&B

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.