Cocktails set to boost global rum sales

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.

This article was originally published by the drinks business and has been shared with permission.

Leave your reply

Most Recent Stories

WLC Eats: Jin Sha at Four Seasons Hotel Hangzhou at West Lake

Douglas Blyde takes a trip to the Four Seasons Hotel Hangzhou, China. During his visit, head sommelier Olive Gao guides him through a list covering everything from lard-washed rice wine to tea.

The airline with an organic-only wine list

French boutique airline La Compagnie's exclusively-organic onboard wine list is designed to correspond with its "disruptive image", according to the company.

Kent vineyard battles opposition to wine tastings near graveyard

Nine Oaks Vineyard in Kent is seeking to allay concerns of local residents after facing opposition to its new licence to hold wine tastings, with villagers arguing that nearby mourners could be disturbed. WLC finds out more.

Analysis: a closer look at Majestic's acquisition of Vagabond Wine

Majestic's acquisition of Vagabond Wines, which was confirmed last week, is an interesting expansion for the well-known specialist retailer, particularly given the growth of its B2B business in recent years. WLC looks at what the deal may mean.

Michel Roux Jr to open new restaurant

Just a few months after he shut the doors of legendary Mayfair institution Le Gavroche, Michel Roux Jr will open a new restaurant at The Langham hotel this summer, with the menu taking inspiration from his childhood in Kent.

Most Recent Stories

WLC Eats: Jin Sha at Four Seasons Hotel Hangzhou at West Lake

Douglas Blyde takes a trip to the Four Seasons Hotel Hangzhou, China. During his visit, head sommelier Olive Gao guides him through a list covering everything from lard-washed rice wine to tea.

The airline with an organic-only wine list

French boutique airline La Compagnie's exclusively-organic onboard wine list is designed to correspond with its "disruptive image", according to the company.

Kent vineyard battles opposition to wine tastings near graveyard

Nine Oaks Vineyard in Kent is seeking to allay concerns of local residents after facing opposition to its new licence to hold wine tastings, with villagers arguing that nearby mourners could be disturbed. WLC finds out more.

Analysis: a closer look at Majestic's acquisition of Vagabond Wine

Majestic's acquisition of Vagabond Wines, which was confirmed last week, is an interesting expansion for the well-known specialist retailer, particularly given the growth of its B2B business in recent years. WLC looks at what the deal may mean.

Michel Roux Jr to open new restaurant

Just a few months after he shut the doors of legendary Mayfair institution Le Gavroche, Michel Roux Jr will open a new restaurant at The Langham hotel this summer, with the menu taking inspiration from his childhood in Kent.