The Asia Pacific rum market size was valued at USD 6,135 million in 2021 and is projected to reach a value of USD 9,373 million by 2031, registering a CAGR of 4.4% during the forecast period (2022-2031).
Rum has changed greatly in the past few years because of how people drink now. Both people who drink boozy drinks and people who work in bars want to learn more about them, especially Rum. Also, words like "provenance," "heritage," and "style" don't just describe the fast-paced spirit of business; they also make an emotional connection with the modern consumer. In the last few years, people have become more interested in places that don't usually make Rum, such as the Philippines. In the same way, the market for golden Rum is growing, which is helping the total rum market in the region. At the same time, people are more open to trying new things, which has helped colored Rum become a popular trend. Because people want to smell and taste more unusual things, new mixtures of fruits and spices like coffee rum and coconut rum have been made and put on the market.
as more people use online shopping sites to buy their preferred rums. The trend is fueled by several variables, including the rising acceptance of online shopping, the practicality of home delivery, and the accessibility of a broader selection of goods online. Several rum companies capitalize on this development by concentrating their marketing and sales efforts online. As an illustration, Bacardi only recently made it possible for customers to order its products online and deliver them right to their homes in Australia and New Zealand. The platform also provides tailored recommendations based on users' past purchases and preferences. Additionally, several rum companies only sell limited-edition releases and unique merchandise on their websites. For instance, Diplomático solely offered its limited-edition Rum through its internet store in 2020, and it was gone within hours of being on sale. With this strategy, firms can thrill and build exclusivity among their online customers while boosting sales.
The stringent cultural and religious prohibitions on alcohol drinking in the region can reduce customer demand for rum products. Traditional values, societal standards, and religious convictions are a few influences driving this trend.
Cultural and religious standards play a key role in limiting the expansion of the rum business in Pakistan and Bangladesh, both nations with large Muslim populations. Alcohol production, sale, or use in public areas are all prohibited by Islamic law, and thus makes, they are illegal. As a result, the environment for selling and distributing alcoholic beverages, including Rum, has become extremely constrained. Additionally, customers may prefer traditional alcoholic drinks like sake or soju over Rum, which may be perceived as less culturally authentic, in nations like Japan and South Korea, where there are strong social conventions surrounding drinking.
The region's expanding middle class is a significant factor in the growth of the rum industry since consumers with rising earnings are more inclined to invest in high-end, high-quality goods. Rum sales have increased significantly in China, India, and Indonesia in recent years thanks to these countries' growing middle classes. For instance, premium rum brands like Old Monk and Ron Zacapa have won over a devoted following among the nation's expanding middle class. Despite rising competition from overseas brands, Old Monk, a well-known Indian rum brand, has held onto its market share. Meanwhile, rich Indian consumers are becoming more familiar with the premium Guatemalan rum brand Ron Zacapa. Rum companies need to innovate their products and use focused marketing techniques that consider local consumers' distinct tastes and preferences if they want to profit from this trend.
The Asia Pacific rum market is segmented based on Type, sales channel, and region.
The Type is further segmented into white Rum, dark and gold Rum, spiced, and others.
The Dark and gold Rum dominated the market and is expected to register a CAGR of 3.9% over the forecast period.
Based on sales channels, the market is sub-segmented into Hypermarkets and supermarkets, specialty stores, online retail, and others.
Specialty stores are expected to dominate the market, registering the highest CAGR of 4.2% over the forecast period.
Asia-Pacific is segmented by region into China, India, Japan, South Korea, South East Asia, and the rest of Asia-Pacific.
India dominated the market and is expected to grow at a CAGR of 5.3% during the forecast period.
India, China, Japan, New Zealand, and Thailand are important regional rum consumers, boosting regional rum market growth. Asia-Pacific is the fastest-growing alcohol market. GDP, developing economies, and rising per capita income drive this expansion. China's disposable income rose 7.84%, and India's 13.67% between 2017 and 2018. China's resident disposable income rose 5.8% to USD 4,461.95 in 2019. India's household disposable income fell by 0.8% in 2019. Rum buyers need disposable income. Thus, rising consumer disposable income drives regional rum demand.
Joint ventures are helping some regional rum vendors expand. In June 2018, Pernod Ricard SA (Pernod) acquired a majority position in a new joint venture with private equity firm Yoma Strategic Holdings to expand into Myanmar. Pernod Ricard became Myanmar's first worldwide spirits producer with this acquisition. Vendor expansions boost rum sales. They will boost the rum market in the region.
Strict restrictions and policies may also hamper the regional market. Alcohol is illegal in Bangladesh. India, Malaysia, and Vietnam have banned alcohol ads on TV and radio to reduce alcohol consumption. Regional governments have enacted alcohol-reduction laws. Thailand restricted alcohol sales within 300 meters of colleges and universities to discourage underage drinking and encourage a healthy lifestyle. Indonesia recently banned small-shop alcohol sales. Alcohol is completely banned in Afghanistan and Pakistan. These issues may slow regional market growth.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|