The global spiced rum market size was valued at USD 6.2 billion in 2020 and is anticipated to grow at USD 8 billion by 2027 witness significant growth with CAGR of 4% in the years to come.. The market growth is majorly attributed to shifting consumer preference for premium alcoholic drinks.
Shifting trend towards consuming a low quantity of alcohol with better quality has been boosting the demand for flavoured rum, especially among the millennials. Furthermore, the expansion of cocktail culture among millennials at the global level is expected to widen the growth opportunity for flavoured rum in the upcoming years.
The cocktail revolution has been appealing to a large number of drinkers who are interested in both traditional and exotic flavours. This trend has raised the sales of spiced spirits in bars, pubs, and restaurants. Furthermore, the cocktail enthusiasts have been posting appealing photos on Instagram that has been influencing a large group of followers. For instance, a vast number of “drinkstagrammers” are also encouraging consumers to try spiced drinks through social websites. This trend is expected to expand the scope of spiced rum over the next few years.
The on-trade segment led the spiced rum market in 2020 and held over 60% share of the global revenue. Over the past few years, spirits sales have significantly increased in the on-trade segment owing to the augmented number of consumers drinking at bars, pubs, and restaurants.
The fruit-based flavored rum dominated the market with more than 55% share of the total revenue in 2020. Consumers have shown remarkable interest in the citrus fruits blended products. Among the citrus fruits, lime, pineapple, and orange are the key sub-categories in the market. Furthermore, coconut is another popular choice among the consumers owing to its health benefits. Considering the growing demand for the fruit-flavored drinks, manufacturers of flavored rum have expanded their fruit product line. For instance, over the past few years, Bacardi has extended its portfolio by incorporating several citruses, tropical, and exotic fruits, such as lemon, grapefruit, tangerine, orange, coconut, pineapple, banana, mango, dragon berry, and raspberry.
The spiced rum market is segmented on the basis of product, distribution channel and region. On the basis of product the market is segmented into Vanilla, Fruit, Mix, Others. On the basis of distribution channel On-trade, Off-trade.
Asia Pacific dominated the market for spiced rum in 2020 with more than 45% share of the global revenue due to the large consumer base in countries, such as China, India, South Korea, Japan, Philippines, and Australia. According to the British Chamber of Commerce in Korea (BCCK), the sales of gin and rum have been significantly growing in South Korea, especially in Gangnam and Itaewon areas. This trend is expected to compel the industry participants to launch spiced rum in these countries.
Europe is expected to witness the fastest growth over the forecast period. Consumers in the region are increasingly exploring different types of rum, including spice and fruits flavored. As per the Wine and Spirit Trade Association, in 2020, the sales of the product in off-trade have increased by 6% in the U.K. as compared to 2018. Similarly, consumers in Germany are seeking for spiced rum. Sweet flavors have gained significant popularity among German consumers. Growing trend of exploring flavored drinks will create growth opportunities for spiced rum in Europe in the upcoming years.
Key manufacturers of spiced rum include Diageo; Bacardi Limited; Suntory Holdings Limited; Destilería Serrallés; Heaven Hill Distillery; Admiral Nelson's Rum; Davide Campari-Milano S.p.A.; Pernod Ricard; Maine Craft Distilling, LLC; Tanduay Distillers, Inc.; Altitude Spirits, Inc.; SEASPIRITS; and Sazerac Co.
Shifting trend towards consuming a low quantity of alcohol with better quality has been boosting the demand for flavoured rum, especially among the millennials. Furthermore, the expansion of cocktail culture among millennials at the global level is expected to widen the growth opportunity for flavoured rum in the upcoming years.
The cocktail revolution has been appealing to a large number of drinkers who are interested in both traditional and exotic flavours. This trend has raised the sales of spiced spirits in bars, pubs, and restaurants. Furthermore, the cocktail enthusiasts have been posting appealing photos on Instagram that has been influencing a large group of followers. For instance, a vast number of “drinkstagrammers” are also encouraging consumers to try spiced drinks through social websites. This trend is expected to expand the scope of spiced rum over the next few years.
The on-trade segment led the spiced rum market in 2020 and held over 60% share of the global revenue. Over the past few years, spirits sales have significantly increased in the on-trade segment owing to the augmented number of consumers drinking at bars, pubs, and restaurants.
The fruit-based flavored rum dominated the market with more than 55% share of the total revenue in 2020. Consumers have shown remarkable interest in the citrus fruits blended products. Among the citrus fruits, lime, pineapple, and orange are the key sub-categories in the market. Furthermore, coconut is another popular choice among the consumers owing to its health benefits. Considering the growing demand for the fruit-flavored drinks, manufacturers of flavored rum have expanded their fruit product line. For instance, over the past few years, Bacardi has extended its portfolio by incorporating several citruses, tropical, and exotic fruits, such as lemon, grapefruit, tangerine, orange, coconut, pineapple, banana, mango, dragon berry, and raspberry.
The spiced rum market is segmented on the basis of product, distribution channel and region. On the basis of product the market is segmented into Vanilla, Fruit, Mix, Others. On the basis of distribution channel On-trade, Off-trade.
Asia Pacific dominated the market for spiced rum in 2020 with more than 45% share of the global revenue due to the large consumer base in countries, such as China, India, South Korea, Japan, Philippines, and Australia. According to the British Chamber of Commerce in Korea (BCCK), the sales of gin and rum have been significantly growing in South Korea, especially in Gangnam and Itaewon areas. This trend is expected to compel the industry participants to launch spiced rum in these countries.
Europe is expected to witness the fastest growth over the forecast period. Consumers in the region are increasingly exploring different types of rum, including spice and fruits flavored. As per the Wine and Spirit Trade Association, in 2020, the sales of the product in off-trade have increased by 6% in the U.K. as compared to 2018. Similarly, consumers in Germany are seeking for spiced rum. Sweet flavors have gained significant popularity among German consumers. Growing trend of exploring flavored drinks will create growth opportunities for spiced rum in Europe in the upcoming years.
Key manufacturers of spiced rum include Diageo; Bacardi Limited; Suntory Holdings Limited; Destilería Serrallés; Heaven Hill Distillery; Admiral Nelson's Rum; Davide Campari-Milano S.p.A.; Pernod Ricard; Maine Craft Distilling, LLC; Tanduay Distillers, Inc.; Altitude Spirits, Inc.; SEASPIRITS; and Sazerac Co.
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