Europe Rum Market

Market Overview

The European rum market size was valued at USD 904 million in 2021 and is projected to reach USD 1,105 million by 2031, registering a CAGR of 2.7% from 2022 to 2031.

Highlights

• Dark and gold Rum dominates the market by Type.
• Specialty stores dominate the market by sales channel.

Rum is the second most popular spirit drink as more and more people want to try new flavors besides dark and golden Rum and flavored rums are widely used to make cocktails, shakers, and mixers drink mixes. It wasn't until a few decades ago that medicine saved warriors and troops in the war in Rum. 'Totorum' was used to keep troops healthy during World War I.

It has been shown that Rum makes bones stronger. In this way, drinking in moderation can help keep you from getting osteoporosis and ease the pain of arthritis. Rum can also help avoid heart attacks and heart disease by raising HDL cholesterol and keeping the arteries from getting clogged. Rum is also one of the oldest drinks that contain alcohol. Traditional rum drinkers look for high-quality goods with unique tastes.

Market Dynamics

Europe Rum Market Drivers

An Increasing Number of Flavored Rum Launches

In the past few years, several rum makers have put out flavored rums in Europe. Bacardi has made Bacardi Coconut, Bacardi Pineapple, and Bacardi Raspberry, for example. Malibu has a famous coconut-flavored rum, Malibu Mango, and Malibu Passion Fruit. Captain Morgan has added Captain Morgan Pineapple, Captain Morgan Orange Vanilla Twist, and Captain Morgan Tiki to its flavored rums. Dead Man's Fingers has become popular in Europe because of its unusual tastes, such as Dead Man's Fingers Coconut, Dead Man's Fingers Raspberry, and Dead Man's Fingers Spiced. Flavored rums are becoming increasingly popular, and new brands like Bumbu Rum Co. and Bayou Rum, which come in various tastes, were just released in Europe. Also, the number of craft and artisanal rum brands in Europe that make small batches of homemade flavored Rum has grown.

Europe Rum Market Restraints

Growing Health Concerns

Low-alcohol Rum is becoming more popular because people are more aware of their health and want to live healthier lives. On the other hand, the world rum market isn't growing as fast as it could because more and more people want healthier drinks. Because of this, people are drinking less alcohol altogether.

Also, the alcohol people worldwide drank fell four times faster in 2016 than from 2011 to 2015. According to the Office for National Statistics, 16-year-olds and older who have had a drink in the past week fell by 7.3% between 2005 and 2016. Also, people who drink alcohol are drinking more non-alcoholic drinks now because they are more aware. People are switching to drinks without alcohol because they want to. According to the Office of National Statistics, the number of people who don't drink has increased in the UK since 2005. In 2017, about 20.4% of the population wasn't drinking.

Europe Rum Market Opportunities

Increasing Demand for Premium and High-Quality Rum

Several causes, such as a rise in interest in product quality and authenticity, a shift toward more affluent and sophisticated drinking situations, and an increased emphasis on health and wellbeing, all contribute to the demand. Offering premium aged rums made using conventional production techniques and matured in oak barrels is one way that rum companies satisfy this demand. For instance, the premium Venezuelan Rum Diplomático's Reserva Exclusiva, which may have matured for up to 12 years, has garnered numerous honors for its quality and flavor. The premium Guatemalan Rum Ron Zacapa's Centenario Solera 23, aged up to 23 years and renowned for its refined and nuanced flavor profile, is similar. Offering distinctive and out-of-the-ordinary flavor profiles that appeal to affluent and discriminating consumers is another method by that rum manufacturers can satisfy the demand for premium and high-quality rums. For instance, the limited-edition Rum Tributo 2019 from Havana Club is finished in barrels that once housed French cognac and are aged up to 20 years. The Rum is given a distinctive flavor character by this special aging method that distinguishes it from other rums on the market.

Regional Analysis

Europe is segmented into Germany, The UK, France, Spain, Italy, Benelux, and the rest of Europe.

Spain dominated the market and is expected to grow at a CAGR of 1.9% during the forecast period. 

Europe consumes the most axial. Belarus consumed the most alcohol (17.50%) in 2018. Premiumization of alcohol like Rum is driving high alcohol consumption in the region. Premium rums are in demand throughout Europe due to premiumization. Premium drinking experiences have increased, driving demand for premium rums. Thus, regional rum producers are shifting from bulk to premium rum manufacturing. This trend is prevalent in the UK, Belgium, the Czech Republic, Denmark, Germany, Switzerland, and France.

European fat rum launches have increased due to consumers' eagerness to try new products and flavors. This boosts the regional market growth. In October 2019, UK-based Diageo released a gingerbread-flavored Captain Morgan Spiced Rum. That Boutique-y Rum Company, a UK-based company, announced two new Signature Blends products in August 2019. In June 2019, U.K.-based Bacard introduced Bacardi Coconut, a blend of Carta rum and coconut tastes.

Alcohol is Europe's third-leading risk factor for disease and death, according to the WHO. Thus, certain regional countries are limiting alcohol use, such as Russia is developing alcohol-reduction policies. Since 2005, Russia has raised alcohol prices, decreased availability, and raised the legal drinking age. Norwegian legislation regulates alcohol sales hours. This law lets grocery stores sell alcohol until 8 PM on weekdays and 6 PM on Saturdays. On Sundays, supermarket stores cannot sell alcohol. Government policies will minimize arum usage and alcohol availability.

Segmental Analysis

The Europe 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 2.4% 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 2.6% over the forecast period.

Recent Developments

• April 2023- Asahi Group will launch Asahi Super Dry Nama Jokki Can in South Korea.
• March 2023- Bacardi promoted Stephanie MacLeod to drive whisky premiumization and growth.