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The global rum market size is expected to increase by 86.22 million liters from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 1.49%. The global rum market is poised for growth due to the increasing demand for premium varieties of rum and the rise in per capita income. Moreover, the internet has become a popular platform for selling and marketing rum worldwide, enabling smaller craft spirits businesses to reach a broader consumer base.
This rum market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers rum market segmentation by distribution channel (on trade and off trade), product (gold and dark rum, white rum, and spiced rum), and geography (APAC, North America, Europe, South America, and the Middle East and Africa).
Based on our research output, there has been a neutral impact on the market growth during and post-COVID-19 era. The growing demand for premium varieties of rum is notably driving the rum market growth, although factors such as growing health concerns among consumers may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic's impact on the rum industry. The holistic analysis of the drivers will help deduce end goals and refine marketing strategies to gain a competitive edge.
Key Rum Market Driver
Globally, the increasing demand for premium rum is expected to be a significant driving factor for the growth of the global rum market. This demand surge can be attributed to several factors, including the rise in per capita income in both developed and developing economies. The growth in disposable income has led consumers to seek out and appreciate the superior quality, taste, and brand value offered by premium varieties of rum. In 2019, China experienced a substantial increase in resident disposable income, reaching USD 4,461.95, reflecting a growth rate of 5.8% compared to 2018. Conversely, India witnessed a slight decline in household disposable income growth, which stood at 0.8% in 2019 compared to the previous year.
To cater to the growing demand for high-quality rum, vendors have been introducing premium varieties that are widely preferred by consumers. This trend has prompted companies like Pernod Ricard and Bacardi to launch new additions to their premium rum portfolios. For instance, in October 2019, Pernod Ricard unveiled the white and gold Havana Club Cuban rum, further expanding its range of premium offerings. Similarly, Bacardi introduced BACARDI Gran Reserva Diez, a gold sipping premium rum, to enhance its premium rum portfolio. Earlier, in April 2018, Bacardi had also launched Anejo Cuatro gold rum as a premium variant. With an increasing number of premium rum varieties being launched worldwide, vendors across the globe are actively promoting high-end products to encourage consumers to indulge and spend more. This strategy is expected to have a positive impact on the growth of the global rum market throughout the forecast period.
Key Rum Market Trends
The rise in inorganic growth is the key market trend driving the global rum market growth. One of the positive trends influencing the growth of the global rum market is the increasing number of mergers and acquisitions (M&A). Successful M&A helps vendors increase their market share and gain access to new products and technologies. The growing popularity of premium rum has encouraged major vendors to adopt the M&A strategy and acquire smaller players specializing in any category. In addition to these acquisitions, there have been instances where key players operating in the global rum market have either invested in small craft distillers or acquired them to tap into the huge growth potential of the market.
Key Rum Market Challenge
Growing health concerns among consumers are the major challenge impeding the global rum market growth. Rum is one of the most widely consumed alcoholic beverages. However, with the growing inclination of consumers towards healthy living and lifestyles, there is an increasing phenomenon of abstinence from drinking rum. As the consumption of rum is known to cause ailments, the preference for rum is decreasing. Consuming rum regularly reduces the heart rate and causes chest pain. The long-term risks of rum consumption include depression, high blood pressure, liver diseases, and cancer. Increasing health awareness and the growing inclination for healthy lifestyles have encouraged the consumption of low-alcohol rum. The rising preference for healthier drinks and beverages, however, is mitigating the growth of the global rum market. As a result, there is a decline in overall alcohol consumption. This rum market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
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56% of the market’s growth will originate from APAC during the forecast period. The rum market in the Asia-Pacific (APAC) region is poised for growth, with countries like India, China, Japan, New Zealand, and Thailand being major consumers. APAC has emerged as the fastest-growing market for alcoholic beverages, driven by factors such as increasing GDP, developing economies, and rising per capita income. Disposable incomes in China and India saw significant growth, with China's resident disposable income reaching $4,461.95 in 2019, a 5.8% increase from the previous year. While India witnessed a slight decline in disposable income growth in 2019, the overall trend of rising disposable incomes fuels the demand for rum in the region.
Vendors in the APAC rum market are expanding their market presence through joint ventures, such as Pernod Ricard's acquisition of a majority stake in a joint venture with Yoma Strategic Holdings in Myanmar. These expansions contribute to increased rum sales and are expected to drive market growth in APAC.
However, the implementation of stringent regulations and policies poses challenges to the regional market. Countries like Bangladesh prohibit the sale, production, and consumption of alcoholic beverages, while others like India, Malaysia, and Vietnam restrict alcohol advertisements. Additionally, regulations aimed at reducing alcohol consumption, such as Thailand's ban on sales near educational institutions, further impact the market. Complete alcohol bans are imposed in countries like Afghanistan and Pakistan, hindering market growth.
The COVID-19 pandemic had a negative impact on the regional rum market in 2020, with lockdowns and travel restrictions leading to temporary closures of retail sales and manufacturing units. However, the availability of vaccines and vaccination drives in APAC countries have gradually restored retail activities, increasing the demand for rum and driving market growth in the forecast period.
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The rum market share growth in the gold and dark rum segment will be significant during the forecast period. On-trade distribution channels, also known as on-premise distribution channels, provide customers with the opportunity to consume rum at the place of purchase, primarily in restaurants, bars, pubs, and hotels. The expansion of bars, pubs, and restaurants is a crucial driver for rum sales through on-trade distribution channels. Notable examples include Go Burrito's announcement of a new restaurant and rum bar in Johnson City, US, in June 2019, and J D Wetherspoon plc (Wetherspoons) opening a new pub at St. Pancras in the UK in October 2018.
However, the on-trade distribution channel segment in the global rum market faces certain challenges that may hinder its growth. Countries like the UAE, which adhere to Islamic principles, impose restrictions on alcohol consumption. Consequently, consumers in these countries prefer to purchase rum and other alcoholic beverages through on-trade distribution channels. In Dubai, for instance, alcohol can only be bought and consumed in licensed venues such as hotels, restaurants, and clubs. Additionally, rum sold through the on-trade segment often carries a higher price tag compared to those sold in retail outlets like supermarkets and hypermarkets. Furthermore, the seating capacity of hotels, bars, and pubs is limited, which can restrict the sales of rum and impede the growth of the on-trade distribution segment during the forecast period.
The outbreak of COVID-19 in 2020 had a significant negative impact on the on-trade distribution channel of the global rum market. Lockdown measures were implemented worldwide for several months to mitigate the spread of the virus. Consequently, the closure of restaurants, bars, pubs, and hotels resulted in a decline in rum sales, negatively affecting the market. However, with the gradual lifting of lockdowns in many countries, on-trade distribution channels have started reopening, leading to a steady recovery of the market during the forecast period.
The rum market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies. The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the rum market encompasses successful business strategies deployed by the key vendors. The rum market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
Our report provides extensive information on the value chain analysis for the rum market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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Rum Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 1.49% |
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Market growth 2022-2026 |
86.22 mn L |
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Market structure |
Fragmented |
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YoY growth (%) |
1.01 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 56% |
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Key consumer countries |
US, India, The Philippines, UK, and France |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Asahi Group Holdings Ltd., Atom Brands, Bacardi Martini BV, Cayman Spirits Co, Davide Campari Milano NV, Diageo Plc, LT Group Inc., Lyon Distilling Co, Maine Craft Distilling LLC, Mohan Meakin Pvt Ltd, Nova Scotia Spirit Co, Pernod Ricard SA, Suntory Beverage and Food Ltd., The Edrington Group Ltd., Tobacco Barn Distillery LLC, Westerhall Estate, William Grant and Sons Ltd, and Demerara Distillers Ltd |
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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, and Market condition analysis for the forecast period |
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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 Five Forces Analysis
5 Market Segmentation by Distribution Channel
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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