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Rum Market Segmented By Organic and Conventional Nature in White, Golden, Dark, Spiced Type with Standard and Over-Proof
The market for rum can be expected to expand at a value based CAGR of 3.9% and show an increase in revenue from US$ 17,562.1 Mn to around US$ 35,537.7 Mn by 2033.
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Rum Market Size (2023E) |
US$ 17,562.1 Mn |
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Projected Sales of Rum (2033F) |
US$ 35,537.7 Mn |
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Value CAGR (2023-2033) |
3.9% |
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Value Share of Top 4 Countries (2022E) |
67% |
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The global rum market has witnessed significant growth in the historical period registering a CAGR of 4.0% in the historical period and was valued at US$ 17,562.1 Mn in 2023.
Millennials are the key consumers of rum across the globe, as rum is a comparatively economic drink as compared to other spirits. This makes it suitable for this age group that seeks budget drinks in the premium category with the desired alcohol content. Millennials also have decent spending power, and are more willing to spend on alcohol as compared to other consumer categories. The marked preference for rum over other alcoholic drinks by millennials is one of the reasons that boosts the growth of the global rum market.
The global market for rum is estimated to reach an approximate valuation of US$ 35,537.7 Mn in the forecast period.
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Get a Customized Version“Increasing Spending Power of Middle-income Population”
Sales of alcoholic beverages are mainly determined by the income of individuals, and the purchasing power of consumers is based on their income. According to the UN, the number of middle-income consumers has been increasing in recent years.
This category of consumers shows a higher inclination toward a better lifestyle, with an increased disposable income on food and beverage products. This factor is anticipated to drive the growth of the global rum market over the forecast period of 2023-2033.
“High Focus on Rum with Unique Flavor Profiles”
In recent years, manufacturers are offering rum products with different tastes and flavors. Most manufacturers are focused on offering rum products with sweet, buttery caramel, tropical fruit, and vanilla notes that end with smoky licorice and molasses finish. This is attributable to technological advancements in the production line. Moreover, advancements in advertising also leave a big impact on the consumers of alcoholic beverages. Manufacturers are focused on agreements with popular celebrities to advertise their brands and improve sales as well as brand awareness, which further bolsters the growth of the global rum market.
“Innovation and Brand Building to Remain Key Growth Factors”
The rum category is becoming increasingly competitive. Hence, in order to gain an advantage over their peers, manufacturers of rum focus on innovation and strive to launch new products in the premium category. These factors considerably affect the overall growth of the rum market. Moreover, key players also focus on developing new and premium rum offerings to sustain their position in this competitive market.
“Manufacturers to Offer Rum Products through e-Commerce Platforms”
The use of e-Commerce for shopping is increasing substantially in emerging as well as established markets. Consumers want everything to be delivered at their doorsteps, especially food and beverage products. Majority of millennials prefer consuming alcohol in their homes rather than going out. Online retail is the easiest way to get alcohol at the doorstep in countries such as the U.S., the U.K., China, and Canada. Owing to these factors, e-Commerce is expected to create huge opportunities for players in the global rum market. In some countries, online retail of alcohol is still banned by government authorities, which may change in the foreseeable future.
“Stringent Regulations on Advertisements”
Restrictions on the advertisements and brand publicity have left a void in the alcohol industry, owing to which, sales could be adversely affected over the forecast period. The governments in various countries have imposed a ban on advertising alcohol brands on national as well as private television channels. Owing to these bans, newly launched alcoholic drinks do not reach the consumer base. This is expected to adversely affect the growth of the market over the forecast period.
What does the South Asian rum market look like?
South Asia has been identified as one of the largest consumers of rum across the globe. India and the Philippines are the most dominant countries in the rum market in South Asia, with the highest number of consumers. India and the Philippines are also the leading producers of rum products. Further, India is witnessing a strong growth rate in the premium rum category. Countries such as Indonesia, Malaysia, and Thailand are witnessing an increase in rum consumption, owing to the growing tourism industry and travel retail in these countries.
What is the Outlook for the European Rum market?
The European market is among the top consumers of rum and is valued at US$ 3,011.4 Mn in 2023 and the value share is expected to rise significantly to reach US$ 7,012.4 Mn by 2033. Based on the type, the market is dominated by the consumption of white and light rum holding almost equal market share.
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Which Type of Rum Accounts for High Revenue Generation?
The largest valuation has been attained by light/gold rum followed by white rum with a valuation of US$ 5,021.5 Mn and US$ 4,677.5 Mn respectively. However, spiced rum is projected to grow at the fastest rate based on the forecast value CAGR of 4.5%.
Why is the e-Commerce segment expected to show prominent growth in the forecast period?
The use of e-Commerce for shopping is growing rapidly in both emerging and established markets. The consumer wants everything, especially food and beverages, to be delivered to their door. Majority of millennials prefer to consume alcohol at home rather than go out. Online retail, on the other hand, is the most convenient way to get alcohol delivered to your door in countries such as the United States, the United Kingdom, China, and Canada. Due to these factors, the global rum market is expected to benefit greatly from e-commerce. Online alcohol sales are still prohibited by government authorities in some countries, though this may change in the near future.
The global rum market is dominated by a substantial number of multinational corporations and the c Companies with a strong global footprint holding approximately 55-55% of the market. Rum producers are focusing their product offerings on emerging markets specifically.
Some of the major players in the worldwide Rum market include Diageo PLC, Pernod Ricard SA, Bacardi Limited, Edrington, Tanduay Distillers, Inc., and others. Regional players account for 20-25% of the market, while local players account for 10%-20%. These companies are involved in the production of Rum on a small scale and are primarily export-oriented.
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Attribute |
Details |
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Forecast period |
2023-2033 |
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Historical data available for |
2018-2022 |
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Market analysis |
USD million for value |
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Key regions covered |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Report coverage |
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Customization & pricing |
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The global market for rum has a value of US$ 17,562.1 Mn in 2023.
The global market for rum has a value CAGR of 4.0% from 2018-2022.
The global market for rum has a value of US$ 35,537.7 Mn in 2033.
The global market for rum has a value CAGR of 3.9% from 2023-2033.
The top 5 players in rum market include Bacardi Ltd., Diageo, Suntory Holdings Ltd., Maine Craft Distilling, LLC, and Charles Merser & Co.
