News

Cocktails set to boost global rum sales

04 July 2023 By Jessica Mason

The rum sector is set to reach US$20.2 billion in value by 2029 due to the increasing popularity of cocktails boosting its growth.

According to report from food and drinks business-consulting firm Maximize Market Research, the rum category is expected to grow from US$14.5 billion in 2022 to US$20.2 billion in 2029 at a compound annual growth rate (CAGR) of 4.85%.

Maximize Market Research outlined in its market intelligence and competitive landscape report on that the goal of the research was to estimate market sizes in several countries and segments during the past few years and estimate those values for the next few years all while looking at the qualitative and quantitative characteristics of the industry to provide in-depth details on important variables such as motivating factors and obstacles that are expected to determine the market’s future growth.

According to the findings, “consumer tastes that are evolving towards new flavours and product quality provide the rum market with beneficial development prospects” and “the wide range of flavours that the rum has to offer appeals to a wide customer base, and this variety of flavours has boosted the growth of the rum industry”. In addition, it highlighted how “the increasing popularity of cocktails and changing lifestyles are the driving factors” for rum;s growth.

The research found that “the improvement in lifestyle and increasing per capita income of the people has resulted in an increase in the trend of cocktails” and that “the growth of the cocktail industry” has boosted the rum sector and noted that “this trend increases spiced rum sales in pubs, restaurants, and bars” and observed that “the demand for spiced rum in cocktails is increasing”.

Additionally, the report outlined how “the growing number of younger generations started consuming alcohol and the increasing demand for premium varieties are the driving factors” for rum’s growth, despite the category being “restrained by the growing health awareness among the people”.

Regionally, Asia Pacific currently dominates the rum sector and held more than a 40% share of the market in 2022. Added to this “the increasing drinking population and rising income of middle-class people” have been shown to be “the growth drivers for the regional market”.

Plus, “India is a major producer of sugarcane and it is the raw material for rum production” it stated and noted how “changing consumer preferences, rapid urbanisation such as in China and India, and the growing adoption of cocktail culture are also the driving factors for the regional market growth”.

According to Maximize Market Research, “North America is expected to have significant growth” in rum over the forecast period. This is largely due to “the presence of the key players, increasing demand for premium rum and rising trend of the pubs and bars” as well as increasing demand for premium rums and an increase in the consumption of flavoured and spiced rums in cocktails” as “the influencing factors” for the rum category’s growth.

Hennessy staff on strike over China bottling plans

Should Japanese whisky distilleries be tapping into tourism?