Spiced/Flavored Rum Market Set to Witness an Uptick during 2020 to 2027

Posted by Mrudula Anil Karmarkar on May 17th, 2022

The global spiced/flavored rum market size is expected to reach USD 9.39 billion by 2027, expanding at a CAGR of 4.3% over the forecast period, according to a new report by Grand View Research, Inc. Shifting consumer inclination towards flavored alcoholic beverages is fueling the growth of the market across the globe. Furthermore, escalating cocktail culture has widened the growth opportunity for spiced/flavored rum worldwide. As a result, manufacturers have been introducing innovative products to cater to the growing demand.

Asia Pacific dominated the market for spiced/flavored rum in 2020 and held more than 45% share of the global revenue. Increased demand for premium and innovative drinks in China, India, South Korea, Japan, Philippines, and Australia has fueled the market growth in the region. Europe is projected to witness the fastest growth over the forecast period. Key competitors in this industry include Diageo; Bacardi Limited; Suntory Holdings Limited; Destilería Serrallés; Admiral Nelson\'s Rum; Tanduay Distillers, Inc.; Pernod Ricard; Maine Craft Distilling, LLC; Altitude Spirits, Inc.; Davide Campari-Milano S.p.A.; Heaven Hill Distillery; SEASPIRITS; and Sazerac Co. Merger & acquisition and new product launch are the key strategies adopted by the manufacturers in the industry. For instance, in September 2020, Davide Campari-Milano S.p.A. acquired Rhumantilles, from Chevrillon Group. Rhumantilles is the owner of Maison La Mauny and Trois Rivie?res rum brands. This acquisition will enhance Davide Campari-Milano’s high-grade aged inventory and strengthen its position in France.

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Shifting trend towards consuming a low quantity of alcohol with better quality has been boosting the demand for flavored 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 flavored rum in the upcoming years.

Spiced/Flavored Rum Market Report Highlights

• By product, fruit-based spiced/flavored rum dominated the market with more than 55% share of the global revenue in 2020 due to increasing consumer inclination towards alcoholic beverages fortified with oranges, grapes, and apples as they are easily mixed with other fruit drinks
• Off-trade distribution channel is expected to expand at the fastest CAGR of 5.2% from 2020 to 2027. Rising preference for drinking at home among millennials during weekends and after-office hours is expected to promote the scope of off-trade channels, including supermarkets and bar shops, as shopping media
• Asia Pacific dominated the spiced/flavored rum market in 2020 with more than 45% share of the global revenue. Strong consumer base of middle-class groups in countries, such as China and India, is expected to remain a favorable factor for the industry growth in this region
• Europe is expected expand at the fastest CAGR of 5.0% from 2020 to 2027 owing to growing demand for the premium alcoholic beverages in countries, such as Germany, U.K., and France

The cocktail revolution has been appealing to a large number of drinkers who are interested in both traditional and exotic flavors. 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.

Though the traditional fruit flavors accounted for a major proportion of the overall sales in 2020, the industry has immense potential in terms of innovation. In addition, millennial consumers are seeking to purchase drinks with ordinary flavors. Therefore, alcoholic beverage manufacturers have been launching new flavors in order to gain a competitive advantage over other players. For instance, in August 2018, Diageo’s brand, Captain Morgan, introduced a new flavor, Apple Smash, which blends green-apple flavor with Caribbean rum. Later, in March 2020, Captain Morgan introduced its Captain Morgan Tiki. This tropical edition is fortified with ingredients, including mango and pineapple, which are considered ideal for summer.

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. Over the past few years, manufacturers have been introducing new spiced rum, thereby expanding their product portfolio in order to appeal to new consumers.

Grand View Research has segmented the global spiced/flavored rum market on the basis of product, distribution channel:

Spiced/Flavored Rum Product Outlook (Revenue, USD Million, 2016 - 2027)

• Vanilla
• Fruit
• Mix
• Others

Spiced/Flavored Rum Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

• On-trade
• Off-trade