Rum Market Size To Reach $18.15 Billion By 2030 | CAGR: 5.6%

Rum Market Growth & Trends

The global rum market size is expected to reach USD 18.15 billion by 2030, registering a CAGR of 5.6% over the forecast period, according to a new report by Grand View Research, Inc. Rum is one of the most consumed beverages in all spirits, and consumers are highly inclined towards flavored and premium alcoholic beverages. Factors such as the growing urban population coupled with rising per capita income, consumers’ willingness to pay for premium brands, and younger generations increased footprints in places like nightclubs, pubs, and bars are expected to propel the market growth.

The high demand for flavored and spiced rums observed in recent years is driving the growth of the overall market. Rum is also extensively used for shakers, drink mixes, and cocktails thereby driving its demand among consumers. For instance, as per Wine and Spirit Trade Association in 2020, rum was declared the “drink of lockdown” owing to the availability of flavor-infused varieties. The change in consumer tastes and the growing demand for small-batch, handcrafted rum with darker/bolder flavor profiles are contributing to the growth of the market. For instance, Ron Zacapa 23 is made with brown sugar and hints of chocolate and caramel. This expression blends six to 23-year-old rum using the solera process, which combines younger and older liquids in oak casks. Such flavors have a higher preference among regular rum drinkers.

Technology-driven trends in the aging process of the product have changed consumer preferences to a considerable extent. Consumers largely opt for aged rum with darker and bolder flavors. The trends in product sales are largely driven by brand awareness, shopping frequency, and expenditure capability of different buyers. The purchasing habits of younger consumers are often influenced by the price point and brand position. A key observation in the buying behavior of millennials is the preference for brands available on online platforms, after comparing price and style.

The market growth is anticipated to be driven by the positive health associations linked to moderate consumption. When consumed in limited amounts, rum is believed to offer various health benefits, including promoting a healthy heart, aiding in the fight against common colds, and potentially benefiting individuals with diabetes by helping to lower blood sugar levels.

Moreover, countries like India and the Philippines, renowned for their significant production and consumption of rum, play a crucial role as major contributors to the broader alcoholic beverage market. These countries' cultural preferences and deep-rooted traditions have solidified rum as a preferred choice among consumers, further bolstering its prominence in the market.

The global market is competitive and a number of global players play a vital role in driving its growth. Rum-producing companies are strengthening their presence by launching new products, mergers and acquisitions, and expansion of distribution channels. For instance, In August 2021, a UK-based brand, Arlu Rum, launched its first RTD cans in three flavors−passionfruit and mango mojito, blood orange and ginger beer, and spiced rum and cola.

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Rum Market Report Highlights

• The off-trade segment accounted for the highest revenue share of over 75% in 2022 and is expected to grow significantly over the forecast period

• The dark and golden rum segment contributed the largest revenue share of over 45% in 2022 owing to the growing demand from millennials

• Asia Pacific accounted for the largest revenue share of over 40% in 2022 and is expected to grow at a substantial CAGR from 2023 to 2030. The presence of a huge population, rise in disposable income, easy availability of products, and rising popularity of rum in the younger generation leads to a high market share

• North America is estimated to be the fastest-growing market from 2023 to 2030. This is owing to the presence of a large number of global producers, rising demand for premium rums, and increase consumption of flavored and spiced rums in cocktails

Rum Market Segmentation

Grand View Research has segmented the global rum market based on product type, distribution channel, and region:

Rum Product Type Outlook (Revenue, USD Billion, 2017 - 2030)

• Dark and Golden Rum

• White Rum

• Flavored and Spiced Rum

• Others

Rum Distribution Channel Outlook (Revenue, USD Billion, 2017 - 2030)

• Off-Trade

• On-Trade

Rum Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • Germany

  • U.K.

  • France

  • Russia

  • Italy

• Asia Pacific

  • China

  • Philippines

  • India

  • Japan

  • Australia

• Central & South America

  • Brazil

  • Argentina

• Middle East & Africa

  • South Africa

List of Key Players in the Rum Market

• Bacardi Limited

• Davide Campari-Milano N.V.

• Demerara Distillers Ltd.

• Diageo Plc

• LT Group, Inc.

• Nova Scotia Spirit Co.

• Pernod Ricard SA

• Suntory Holdings Ltd

• William Grant & Sons

• Mohan Meakin Limited