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The Rum Market size is projected to increase by USD 9.1 billion and the market size is estimated to grow at a CAGR of 7.06% between 2023 and 2028. The surge in premium rum category demand is the primary driver for market growth. Consumers' preference for premium, matured, and high-quality rums is on the rise as they seek unique flavor profiles and novel experiences. Distilleries respond with improvements in high-end product offerings to cater to discerning rum connoisseurs, as seen with Diageo's introduction of Captain Morgan Sherry Oak Finish. Simultaneously, the e-commerce trend in rum sales is reshaping the market landscape.
Online platforms like Amazon and specialty liquor stores are expanding their rum offerings, allowing consumers to explore diverse options and make informed decisions. Additionally, online tastings and events such as the "Rum Masterclass" further fuel this trend, promising significant market growth during the forecast period. As the tourism industry and travel retail flourish, manufacturers are exploring new trends and premium value offerings to tap into rum-producing regions' potential. This dynamic market sees major players emphasizing ancient craftsmanship and copper pot-distilled rum, complemented by an array of cocktail recipes and experiential liquor retails..
The Market shows an accelerated CAGR during the forecast period.
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The typical off-trade distribution channels for rum are personal retailers, supermarkets, hypermarkets, and online platforms. These distribution channels offer cost benefits owing to various reasons, such as not having dining areas. Supermarkets and hypermarkets have dedicated sections for different brands. They offer a wide product range and numerous varieties. The growing penetration of the internet across the globe is anticipated to boost the online sales of various types of alcoholic beverages. Hence, these factors are expected to drive the growth of the off-trade segment of the market during the forecast period.
The market share growth by the gold and dark rum segment will be significant during the forecast period. Gold rum is made by aging rum in oak barrels. Its golden hue can be attributed to the duration it is kept in the casks. It has a thicker texture than that of light rums. Dark rums are the heaviest variety of rums in terms of alcohol content. The growing demand for uniquely flavored rum-cocktails is one of the major factors driving the market for gold and dark rums.
The gold and dark rum segment was valued at USD 10.84 billion in 2018.
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The segment is also urged by a rise in the number of product launches. The rising demand for gold and dark-rum varieties has significantly increased the retail sales of these varieties. This significant growth in the sale of dark and gold-rum varieties is expected to drive the growth of the global market during the forecast period.
North America is estimated to contribute 33% to the growth of the global market during the forecast period
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Market research and growth analysis conducted by Technavio's analysts has provided detailed insights into the regional trends and drivers influencing the market throughout the forecast period. Among the top markets driving regional growth are the US and Canada. The premiumization of alcoholic beverages stands out as a significant factor projected to boost rum-consumption in North America. These insights are crucial for market forecasting and market growth analysis, shedding light on the evolving dynamics of the industry. Additionally, understanding the country of origin trends and navigating market consolidation are essential for stakeholders to stay competitive in this evolving landscape.
In addition, the growth in e-commerce channels has raised the availability of rum even more; 15% of all rum sales now occur online, which is a sign of moving consumer purchasing patterns. In conclusion, the regional market is evolving due to premiumization, the rising number of craft distilleries, and increasing e-commerce sales, providing chances for both well-known brands and up-and-coming companies to succeed. Therefore, such factors are expected to drive the growth of the market during the forecast period.
The market experiences a surge driven by the growing demand for premium varieties of rum, reflecting consumers' preference for smooth flavor and premium quality. A notable trend is the increasing sales of rum on e-commerce platforms, aligning with the shift towards online shopping habits.
However, challenges arise from supply chain disruptions, affecting the availability of certain varieties. Craft rum, with its genuine flavor and artisan production, gains traction among consumers seeking authentic and unique experiences. Bartenders play a crucial role in driving trends, exploring new flavors and cocktail recipes. Limited-edition releases and exotic ingredients contribute to the allure of premium rum categories, attracting enthusiasts and connoisseurs alike. Despite challenges, manufacturers continue to innovate, launching new products to meet evolving consumer preferences and maintain the premium value in the market.
The escalating desire for premium quality craft rum serves as the primary catalyst propelling market expansion. Discerning consumers increasingly gravitate towards genuine flavor experiences and seek out smooth flavor profiles, driving the popularity of premium quality and craft spirits.
For instance, Diageo's introduction of the Captain Morgan Sherry Oak Finish in February 2021 exemplifies this trend, targeting premium rum category enthusiasts with its matured, sherry cask-aged variant. Consumer willingness to explore limited-edition flavors and products with exotic ingredients amplifies this growth, prompting distilleries to enhance their offerings. With a surge in premium rum varieties globally, industry players are strategically launching new products to entice consumers into increased spending, further fueling market expansion in the forecast period.
The primary trend shaping market growth is the surge in online sales of rum through e-commerce platforms. The shift to online shopping amid the COVID-19 pandemic has bolstered the purchase rum online trend, offering consumers convenience and safety. Online platforms like Amazon, Total Wine and More, and specialty liquor stores have expanded their offerings, providing a wide array of brands, flavors, and ages. Consumers benefit from detailed product descriptions, reviews, and ratings, enabling informed decisions.
Additionally, the rise of online tastings and events, such as the "Rum Masterclass" by Master of Malt, fosters interaction among enthusiasts and experts, further driving this trend. Consequently, the online rum-industry continues to thrive, promising consumers comfort and variety in an expanding retail landscape, leading to significant growth during the forecast period.
Supply chain disruptions is a challenge that affects the growth of the market. The exposure of the sugarcane industry to natural disasters and climate change presents noteworthy challenges for the global market. Hurricanes, extensive droughts, extreme rainfall, and other variable weather patterns brought on by climate change have a direct impact on the cultivation of sugarcane, a key ingredient in rum-manufacturing.
In addition, long-term climate change trends also pose a threat to the viability of sugarcane farming, which will affect the future accessibility and price of this crucial ingredient in rum-making. Hence, supply chain disruptions may impede the growth of the global market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a diverse landscape, ranging from craft rum offerings to commercial rum productions. Consumers seek smooth flavor and premium quality, valuing the genuine flavor crafted by artisan producers and small scale producers. With a focus on craft spirits and organic certificates, the market reflects a growing trend towards authenticity and sustainability.
Cuban rum holds a prestigious position, renowned for its traditional spirits and French discipline in production. Exotic ingredients and limited-edition flavors like cherry vanilla cater to evolving cocktail trends, enticing both bartenders and white rum drinkers.
As urbanization and tourism drive purchasing power, the market witnesses product innovations and limited batches to meet customer demand. Enhanced flavors and velvety textures define dark and golden rum, while flavored and spiced rums offer a unique twist to classic cocktails like Mojitos, Piña Coladas, and Daiquiris in nightclubs, pubs, and bars.
Market trends reveal a shift towards experiential liquor retail, propelled by tariff reductions and trade agreements facilitating market growth and forecasting. With an emphasis on sustainable drinks and retail locations catering to on-trade segments, the market continues to evolve, offering innovative products and memorable experiences.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.06% |
Market growth 2024-2028 |
USD 9.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.34 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, Canada, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Asahi Group Holdings Ltd., Atom Supplies Ltd., Bacardi Ltd., Campari Group, Cayman Spirits Co, Demerara Distillers Ltd, Diageo Plc, LT Group Inc., LYON-RUM Windon Distilling, MAINE CRAFT DISTILLING, Mohan Meakin Ltd., Nova Scotia Spirit Co, Pernod Ricard SA, Suntory Holdings Ltd., The Edrington Group Ltd., Tobacco Barn Distillery LLC, Westerhall Estate Ltd., and William Grant and Sons Ltd |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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