Rum Market

The global rum market is forecasted to see continued growth in consumption, with an anticipated increase in volume and value over the next eight years. The top consuming countries in 2022 were China, the United States, and the UK, while the top producing countries were China, the United States, and India. Import and export volumes also saw increases in 2022, with notable growth rates in certain years. Average prices for imports and exports varied among major countries, with fluctuations observed over the analyzed period. Overall, the global rum market is expected to see steady growth in the immediate future.

Market Forecast

Driven by increasing demand for rum worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +2.7% for the period from 2022 to 2030, which is projected to bring the market volume to 1.5B litres by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +5.1% for the period from 2022 to 2030, which is projected to bring the market value to $8.4B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Rum

For the sixth consecutive year, the global market recorded growth in consumption of rum, which increased by 3.9% to 1.2B litres in 2022. The total consumption volume increased at an average annual rate of +3.8% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, global consumption attained the peak volume in 2022 and is likely to see gradual growth in years to come.

The global rum market value was estimated at $5.6B in 2022, picking up by 2.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total consumption indicated a tangible expansion from 2012 to 2022: its value increased at an average annual rate of +4.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +39.1% against 2016 indices. Over the period under review, the global market attained the maximum level in 2022 and is likely to continue growth in the near future.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (232M litres), the United States (120M litres) and the UK (100M litres), with a combined 37% share of global consumption. India, France, Pakistan, Brazil, Spain, Germany, the Netherlands, Mexico, Italy and Canada lagged somewhat behind, together accounting for a further 31%.

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the main consuming countries, was attained by the Netherlands (with a CAGR of +25.3%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($1B), the UK ($532M) and the United States ($482M) appeared to be the countries with the highest levels of market value in 2022, with a combined 37% share of the global market. France, India, Germany, Italy, Pakistan, Mexico, Spain, Canada, the Netherlands and Brazil lagged somewhat behind, together comprising a further 29%.

The Netherlands, with a CAGR of +21.3%, recorded the highest growth rate of market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of rum per capita consumption in 2022 were the Netherlands (1,942 litres per 1000 persons), the UK (1,469 litres per 1000 persons) and Spain (762 litres per 1000 persons).

From 2012 to 2022, the biggest increases were recorded for the Netherlands (with a CAGR of +24.7%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Rum

Global rum production rose slightly to 1.2B litres in 2022, with an increase of 2.7% compared with the previous year. The total output volume increased at an average annual rate of +2.9% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2018 with an increase of 13% against the previous year. Over the period under review, global production attained the maximum volume in 2022 and is likely to see gradual growth in the immediate term.

In value terms, rum production rose modestly to $5.3B in 2022 estimated in export price. In general, the total production indicated noticeable growth from 2012 to 2022: its value increased at an average annual rate of +4.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +39.6% against 2016 indices. The most prominent rate of growth was recorded in 2014 when the production volume increased by 19%. Global production peaked in 2022 and is expected to retain growth in years to come.

Production By Country

The countries with the highest volumes of production in 2022 were China (229M litres), the United States (128M litres) and India (98M litres), with a combined 37% share of global production. The UK, Cuba, Brazil, the Dominican Republic, France, Pakistan, Mexico, Guatemala, Italy and Nicaragua lagged somewhat behind, together comprising a further 34%.

From 2012 to 2022, the most notable rate of growth in terms of production, amongst the leading producing countries, was attained by Italy (with a CAGR of +19.1%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Rum

In 2022, the amount of rum imported worldwide rose remarkably to 443M litres, growing by 7.5% compared with the year before. The total import volume increased at an average annual rate of +2.6% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed throughout the analyzed period. The pace of growth was the most pronounced in 2021 with an increase of 16%. Over the period under review, global imports reached the peak figure in 2022 and are expected to retain growth in the near future.

In value terms, rum imports rose markedly to $2.1B in 2022. The total import value increased at an average annual rate of +2.9% from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2021 with an increase of 19%. Over the period under review, global imports reached the maximum in 2022 and are likely to see steady growth in the near future.

Imports By Country

The Netherlands (60M litres), Spain (49M litres), Italy (38M litres), Germany (36M litres), the UK (33M litres) and the United States (28M litres) represented roughly 55% of total imports in 2022. France (15M litres), Belgium (15M litres), Canada (14M litres), Russia (9M litres), the United Arab Emirates (9M litres), El Salvador (8M litres) and Chile (6.7M litres) took a little share of total imports.

From 2012 to 2022, the biggest increases were recorded for Belgium (with a CAGR of +23.1%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, Italy ($306M), the United States ($184M) and Germany ($178M) were the countries with the highest levels of imports in 2022, with a combined 31% share of global imports.

In terms of the main importing countries, Italy, with a CAGR of +15.4%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average rum import price stood at $4.8 per litre in 2022, therefore, remained relatively stable against the previous year. Overall, the import price recorded a relatively flat trend pattern. The growth pace was the most rapid in 2017 an increase of 5%. Global import price peaked at $4.9 per litre in 2018; however, from 2019 to 2022, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Italy ($8.1 per litre), while El Salvador ($1.8 per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United States (+7.8%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Rum

In 2022, approx. 457M litres of rum were exported worldwide; surging by 4% against the previous year. In general, exports continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2021 with an increase of 14% against the previous year. The global exports peaked in 2022 and are expected to retain growth in years to come.

In value terms, rum exports expanded significantly to $2B in 2022. Over the period under review, total exports indicated a buoyant expansion from 2012 to 2022: its value increased at an average annual rate of +5.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +34.4% against 2020 indices. The pace of growth was the most pronounced in 2021 when exports increased by 22%. The global exports peaked in 2022 and are likely to continue growth in the immediate term.

Exports By Country

The Dominican Republic (48M litres), Cuba (44M litres), Italy (43M litres), the United States (37M litres), Guatemala (29M litres), the Netherlands (27M litres), Nicaragua (24M litres), Spain (24M litres), France (21M litres), Jamaica (18M litres), Venezuela (18M litres) and Belgium (13M litres) represented roughly 76% of total exports in 2022. The UK (13M litres) took a minor share of total exports.

From 2012 to 2022, the biggest increases were recorded for Belgium (with a CAGR of +33.1%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, Italy ($242M), the Netherlands ($186M) and the United States ($183M) constituted the countries with the highest levels of exports in 2022, together comprising 31% of global exports. The Dominican Republic, Cuba, Spain, France, Venezuela, Jamaica, the UK, Belgium, Guatemala and Nicaragua lagged somewhat behind, together accounting for a further 51%.

Among the main exporting countries, Belgium, with a CAGR of +22.5%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average rum export price amounted to $4.3 per litre, rising by 5.8% against the previous year. Over the last decade, it increased at an average annual rate of +4.4%. The most prominent rate of growth was recorded in 2013 when the average export price increased by 24% against the previous year. Over the period under review, the average export prices attained the maximum in 2022 and is likely to see gradual growth in the immediate term.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was the Netherlands ($6.8 per litre), while Nicaragua ($1.5 per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the Dominican Republic (+13.5%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform