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The Rum Market size is projected to increase by USD 9.1 billion at a CAGR of 7.06% between 2023 and 2028. The market's growth is fueled by several factors, including a rising appetite for premium rum varieties, the expansion of international trade and distribution networks, and the increasing disposable income in emerging markets. These factors collectively drive the market's expansion, reflecting a growing consumer preference for high-quality rum and premium spirit products. The increasing demand for premium rum varieties signifies a shift towards more refined tastes and a willingness to pay for quality. Additionally, the expansion of international trade and distribution networks facilitates the accessibility of these products to a wider global audience, further boosting market growth. Furthermore, the rise in disposable income in emerging markets enhances consumers' purchasing power, driving the demand for premium rum.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The typical off-trade distribution channels are personal retailers, supermarkets, hypermarkets, and online platforms. The market encompasses various distribution channels, including super- and hypermarkets, eCommerce platforms, and convenience stores. Supermarkets and hypermarkets provide cost advantages due to their large product ranges and absence of dining areas. The market is witnessing significant growth in eCommerce sales, driven by the increasing number of internet users. Market-specific developments, such as the rise of premium and craft beverages, are particularly popular among younger consumers. 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. The market experiences significant growth due to the increasing popularity of gold and dark rums in the production of uniquely flavored cocktails. These organic certifications play a crucial role in catering to evolving consumer preferences.
The gold and dark rum segment was valued at USD 10.84 billion in 2018.
The segment is also urged by a rise in the number of product launches. According to the Distilled Spirits Council, rum consumption among the drinking-age population continues to rise, particularly in social establishments and tropical destinations. This trend is driven by the extensive use of gold and dark rums as key ingredients in cocktail recipes. New product launches, such as The Kraken Rum, Ocho, Cuatro, Diez, and those with enhanced flavors like Mango Chile, contribute to the variety and innovation in the market. Experiential liquor retailers, retail channels including liquor stores and specialty stores, on-trade segment, and e-commerce portals facilitate the accessibility of these products. Trade agreements and tariff reductions, as initiated by companies like Proximo Spirits, Black Spiced Rum, Takamaka Rum, Seychelles Series, Rum Blanc, Zannannan (Pineapple), Dark Spiced, Overproof, and Koko (Coconut), further boost retail sales. The aging process, which results in velvety textures and enhanced flavors, remains a significant factor in the production and appeal of these premium rums. 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
Get a glance at the market share of various regions View PDF Sample
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. The market in North America is experiencing growth, driven by the trend of premiumization and the rising preference for matured, high-quality rums. Organic certifications are increasingly important to consumers, and the Distilled Spirits Council reports that the drinking-age population's spirits consumption continues to increase. Social establishments, tropical destinations, and tourists/travelers are significant markets, with souvenir sales contributing to retail channels. Variety and innovation are key, with new product launches such as The Kraken Rum, Ocho, Cuatro, Diez, and those recognized by the Bartender Spirits Awards. The aging process enhances flavors and texture, resulting in velvety rums like Mango Chile. Experiential liquor retailers, trade agreements, and tariff reductions also impact the market. Producers like Proximo Spirits offer Black Spiced Rum, Takamaka Rum, Seychelles Series, Rum Blanc, Zannannan (Pineapple), Dark Spiced, Overproof, and Koko (Coconut drink) through retail sales, liquor stores, specialty stores, and the on-trade segment, as well as e-commerce portals. Therefore, such factors are expected to drive the growth of the market during the forecast period.
The market has experienced significant growth, particularly among Millennial consumers in the Urban population with increasing per capita income. Sugarcane juice and its by-product, Fermented sugarcane molasses, are key ingredients in the production of Rum. Consumer interest in Cocktail culture and Product innovation has led to the diversification of Rum offerings, including Flavoured rum ,Craft rum and craft spirit. Retail sales of alcoholic beverages, including Rum, have seen a increase in various channels such as super- and hypermarkets, eCommerce, convenience stores, and Out-of-Home data including Nightclubs, Pubs, and Bars. Consumer preferences for Spirits continue to evolve, with Rum gaining popularity due to its unique flavors and versatility in cocktails. The market is expected to witness continued growth as Millennial consumers seek new and innovative alcoholic beverage and Ready To Drink Alcoholic Beverages experiences.
The escalating desire for premium quality craft rum serves as the primary catalyst propelling market expansion. The market is experiencing growth due to the rising demand for super-premium and matured rums among consumers. This trend is observable in various sales channels, including supermarkets and hypermarkets, eCommerce platforms, and convenience stores. Market-specific developments include the introduction of limited-edition, ultra-premium rums, such as Bacardi's Facundo Exquisito and Diageo's Captain Morgan Sherry Oak Finish, which cater to discerning rum connoisseurs. Out-of-home data from hotels, restaurants, catering, cafés, and other establishments also indicate a growing interest in high-quality rum.
The primary trend shaping market growth is the increase in online sales of rum through e-commerce platforms. The market has experienced a notable shift towards e-commerce, transforming the way consumers discover and buy rum online. This trend gained momentum during the COVID-19 pandemic in 2020 and 2021, as individuals turned to contactless delivery for convenience and safety. Drizly, an online alcoholic beverage marketplace, reported a substantial increase in spirits sales, particularly rum, during this period. Super- and hypermarkets, convenience stores, and specialty liquor retailers, including Amazon, Total Wine and More, have expanded their rum offerings in response to this trend. Out-of-home data from hotels, restaurants, catering, cafés, and national statistical offices, as well as international institutions, indicate a continued interest in rum. Hence, these factors are expected to drive market growth during the forecast period.
Supply chain disruptions is a challenge that affects the growth of the market. The market is subject to various regulations and taxation policies that significantly influence companies, pricing, and consumer choices. For instance, import duties and retail price hikes in countries like India impact the affordability of imported brands. In developed markets such as the US, bodies like the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulate the production, labeling, and promotion of rum and other premium beverages. Market-specific developments, including the rise of craft beverages and younger consumer preferences, also shape the market landscape. 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.
In the realm of business and finance, the market is a significant player, particularly in regions such as the Caribbean and Latin America. Sugarcanes are the primary source of Rum production, with molasses being the byproduct used in the fermentation process. The production involves various steps, including distillation, aging, and blending. Marketing is a strategic endeavor, with producers employing various tactics to differentiate their brands in the market. For instance, some focus on the unique terroir of their Rum, while others prioritize the aging process and the use of specific barrels. Some brands position themselves as premium or luxury products, targeting high-end consumers
Additionally, producers also face challenges in the market, such as increasing competition from other spirits and changing consumer preferences. To counteract these challenges, they may adopt marketing strategies like product innovation, pricing strategies, and targeted advertising. Moreover, distribution and sales are crucial aspects of marketing. Producers may partner with distributors and retailers to expand their reach and increase sales. They may also adopt e-commerce strategies to sell directly to consumers, especially during the pandemic. In conclusion, marketing is a complex and dynamic process that requires a deep understanding of the industry, consumer preferences, and market trends. Producers must continually innovate and adapt to remain competitive in the market.
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 Forecasting, 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 market forecast period. |
Customization purview |
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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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