Date : June 15, 2023
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Gen Z consumers will drive the global rum market to be worth USD 24 billion, growing at a CAGR of 4.60% through 2023-2028. - Bonafide Research

Gen Z consumers will drive the global rum market to be worth USD 24 billion, growing at a CAGR of 4.60% through 2023-2028.  - Bonafide Research
The innovative and diverse flavor profiles offered by flavored rum have captivated the taste buds of this influential consumer segment, driving the overall expansion of the rum market. The flavoring and spiced rum segment is expected to exhibit growth at a CAGR of 7.40% over the next few years.
Flavored rum has emerged as a popular choice among Gen Z consumers who seek unique and exciting drinking experiences. This generation, known for their adventurous and experimental approach to consumption, has embraced the vibrant and enticing flavors that flavored rum offers. The infusion of natural fruits, spices, and other flavorings into traditional rum has transformed the spirit into a versatile and refreshing beverage option. Flavored rum allows them to explore a wide range of flavor combinations, from tropical fruits like pineapple and coconut to spiced variations infused with cinnamon, vanilla, or ginger. They enjoy experimenting with cocktails and mixing flavors to create their signature drinks. Digital engagement has played a pivotal role in increasing awareness and driving interest in flavored rum among consumers of all ages.

Traditionally associated with male-dominated drinking cultures, the rum market is now witnessing a notable shift as more women explore and enjoy this versatile spirit. One of the key factors contributing to the rise in female rum drinkers is the changing social dynamics and cultural perceptions surrounding alcohol consumption. Women are more empowered than ever before to make independent choices when it comes to their beverage preferences. The breaking down of gender stereotypes and the celebration of diversity have created an environment where women feel confident and comfortable exploring and enjoying a wide variety of spirits, including rum. Rum producers are keenly aware of this trend and are actively developing innovative products and marketing strategies to cater to the evolving tastes and preferences of female drinkers.

According to the research report "Global Rum Market Outlook, 2028," published by Bonafide Research, the market is anticipated to be worth USD 24 billion, increasing from USD 18.37 billion in 2022. The market is expected to grow at a 4.60% CAGR by 2023–28. Rum is a fundamental component in many classic and contemporary cocktails, such as the Mojito, Pia Colada, Mai Tai, Daiquiri, and Rum Punch. While rum may not have the same level of worldwide consumption as some other spirits like vodka or whisky, its popularity continues to grow, and it has a devoted following among rum enthusiasts globally. The flavor profile of rum can range from sweet and fruity to rich and complex, depending on the style and aging process. North America rum market is anticipated to grow at fastest CAGR of 5.43% over the forecast period.

The alcohol content of rum can vary depending on the specific product and its classification. In general, the alcohol by volume (ABV) of rum typically ranges from 40% to 55%. However, there are variations within this range based on factors such as the country of origin, the style of rum, and the specific brand or expression. Standard rums, including white or light rums, golden or amber rums, and dark rums, often have an ABV of around 40% to 45%. These are the most commonly available types of rum and are typically used in cocktails and mixed drinks. Overproof rums, on the other hand, have higher alcohol content, often exceeding 50% ABV. These rums are known for their intense flavors and are sometimes used sparingly as a float or for creating powerful rum-based cocktails. It's important to note that the alcohol content of a specific rum can be found on the label or packaging of the product. Speciality stores dominate the Off-trade distribution channel of rum in the global markets. On the other hand, online sales of rum is picking up with the rise of e-commerce and many producers and craft rum manufactures look out to reach consumers directly.

Rum's association with tropical regions and coastal areas often attracts consumers who enjoy a laid-back, beach-inspired lifestyle. Those who appreciate the flavors and ambiance of Caribbean or beach-themed cocktails tend to gravitate towards rum-based beverages. Rum's versatility and ability to blend well with a variety of ingredients make it a favorite among cocktail enthusiasts. Consumers who enjoy experimenting with mixology and creating signature cocktails often choose rum as a key ingredient for its diverse flavor profiles and ability to complement a range of flavors. Tiki culture, popularized in the mid-20th century, celebrates exotic and tropical aesthetics, often featuring rum-based cocktails as central elements. Consumers who embrace the escapism, vibrant flavors, and visually appealing presentation of tiki drinks are more likely to prefer rum. The craft and premium offerings within the rum category, along with the diverse range of flavors and innovative infusions, resonate with consumers. There is a dedicated community of rum enthusiasts and connoisseurs who appreciate the complexities and nuances of different rum styles, aging processes, and regional variations. These consumers seek out rare and limited-edition expressions, single barrel releases, and high-quality aged rums, and they often engage in tastings and discussions about rum's heritage and production methods. Rum, particularly flavored and spiced varieties, can have sweeter profiles compared to other spirits. This sweetness appeals to consumers who enjoy dessert-like flavors or prefer drinks with a hint of sweetness.

Rum, a distilled alcoholic beverage made from sugarcane by-products such as molasses or sugarcane juice, has long been associated with tropical regions and Caribbean heritage. However, the global appeal of rum has transcended borders, with consumers around the world embracing its unique flavors and diverse expressions. One of the key drivers of the global rum market is the expanding consumer base. Rum has gained traction among millennials and younger consumers who are seeking innovative and authentic drinking experiences. The global rum market offers a diverse range of styles and expressions to cater to different consumer preferences. From light and floral white rums to rich and complex aged rums, there is rum for every palate. Spiced and flavored rums have also gained popularity, appealing to consumers looking for unique taste profiles and exciting flavor combinations. Furthermore, the craft and artisanal segments of the rum market have been flourishing, with small-scale distilleries and independent producers focusing on traditional production methods, locally sourced ingredients, and limited batch releases. Craft rums are captivating consumers with their attention to detail, authenticity, and stories behind their production.

Geographically, the rum market showcases regional variations in consumer preferences. The Asia-Pacific region dominated the global rum market, while emerging markets in Europe, Latin America, and the Middle East and Africa are showing increased interest in rum, resulting in new opportunities for both established and emerging rum brands. Spain rum market is projected to grow rapidly at a CAGR of 6.48% during 2023-2028. The global rum market is also witnessing a surge in initiatives promoting sustainability, environmental responsibility, and social impact. Producers are increasingly focusing on sustainable sourcing of ingredients, eco-friendly packaging, and supporting local communities involved in the rum production process. This commitment to sustainability resonates with consumers, who prioritize ethical practices and transparency.

The competitive landscape of the global rum market is characterized by the presence of both multinational corporations and niche players. Key players in the industry are continually innovating to meet evolving consumer demands, launching new product variants, and investing in marketing initiatives to strengthen their market positions. As the global rum market continues to evolve and expand, industry stakeholders are optimistic about the future. With a growing consumer base, innovative product offerings, and a commitment to sustainability, the global rum market is poised for remarkable growth in the years to come.

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Gen Z consumers will drive the global rum market to be worth USD 24 billion, growing at a CAGR of 4.60% through 2023-2028. - Bonafide Research

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