Market Trends of Rum Industry
This section covers the major market trends shaping the Rum Market according to our research experts:
Innovations And Product Launches Are Expected To Drive The Market
Over the past few years, the category has seen a rapid rise in new trends as companies experiment to demonstrate the premium value of their products. Finishing the rum in unusual casks gives the manufacturers the opportunity to engage with other category consumers like Cognac or whisky drinkers and introduce them to the exquisite world of Cuban rum. For instance, in June 2022, Pernod Ricard India launched the super-premium rum 'Cuba in a Bottle' with Havana Club 7. It is a dark rum matured in ex-Bourbon barrels, that brings out the rich natural flavors of Cuba in a versatile manner. Similarly, in May 2022, Infinity Beverages LLC. unleashed the handcrafted Chippewa Valley's first spiced rum that is produced from blackstrap molasses and infused with orange, vanilla, ginger, and clove.
In order to draw in customers, companies are also creating novel flavors. Most producers concentrate on creating rums with flavors of sweet, buttery caramel, tropical fruit, and vanilla that are followed by smoky licorice and molasses. This was made possible due to advancements in manufacturing technology. For instance, in March 2022, Diageo, a rum brand launched a limited-edition flavor, cherry vanilla introduced by Captain Morgan. The alcoholic beverage combines spiced rum's distinctive flavor with the sweetness of a dark cherry, hints of rich, creamy vanilla, and a dash of heat. Such innovations in productions of rum and introducing more new flavors in the market is attracting more consumers towards the market.
Asia-Pacific Is The Fastest Growing Market
The main drivers of the Asia-Pacific market's growth include the region's expanding pub and bar culture, rapid urbanization, and rising purchasing power. The two countries with the biggest consumption of rum are India and the Philippines, which are also the top manufacturers of rum goods. For instance, the leading Filipino rum brand Tanduay, according to Drinks International's, sold more than 23.7 million 9-liter cases in 2021. Tanduay also ranked as the sixth best-selling spirit brand in the world across all categories. 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. Moreover, urbanization and an increasing number of bars and pubs in countries like India, Thailand, Vietnam, China, and South Korea are indirectly expected to impact the market studied positively during the forecast period. For instance, according to Agriculture and Agri-Food Canada, the retail sales value of pubs and bars in China in 2021 accounted for about USD 8.04 billion. Hence, all such factors are boosting the growth of the overall market in the region.
