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.
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- Diageo PLC
- Pernod Ricard SA
- William Grant & Sons Ltd.
- Remy Cointreau Group
- Westerhall Estate Ltd.
- Cayman Spirits Co.
- Mohan Meakin Ltd.
- Halewood International Holdings PLC
- Suntory Holdings Limited
- Elements Eight Rum Company Ltd
- Bacardi Limited
- Radico Khaitan Limited
- Davide Campari-Milano S.p.A.
- Green Tree Distillery
- La Martiniquaise
- Hacienda Monterrey Wines&Spirits s.l.
- MAISON FERRAND
- Tanduay Distillers, Inc.
Increasing Spending Power of Middle-income Population to Boost Sales
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 2019-2029
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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.
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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.
- Bacardi, a leading brand in the rum market, launched a new line of premium rums in 2018, including Añejo Cuatro, Reserva Ocho, Gran Reserva Diez, and Gran Reserva Limitada, in the U.S. market.
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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 doorstep, especially food and beverage products.
According to the ISWR report, most 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.
- For instance, in India, which is one of the leading consumers of alcohol, the sale of alcohol through online retailers is still banned. The government is planning to allow alcohol sales through online retail, which would present lucrative prospects for manufacturers.
Regional Landscape of Global Rum Market
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.
- In 2018, Diageo, a leading alcoholic beverage producer, witnessed a 11% growth rate in its premium products segment in India.
The global rum market has been witnessing steady growth over the last few years. The markets in East Asia and South Asia are anticipated to register the highest growth over the forecast period, while South Asia remains the top consumer of rum, followed by Europe. By increasing the production of blended old age premium rum products, manufacturers could gain higher profits in the foreseeable future.
Global Rum Market: Segmentation
PMR’s study on the global rum market offers information categorized into four segments - type, nature, sales channel, and region.
Key Questions Answered in PMR’s Global Rum Market
- Which region will hold the highest market share in the global rum market over the forecast period?
- Which region is experiencing the highest growth (CAGR)?
- Which factors are impacting the global rum market?
- What are the global trends impacting the rum market?
- What strategies must emerging players adopt to capture opportunities in various regions in the rum market?
- What is the market structure of the global rum market?