Middle East and Africa Rum Market

Market Overview

The Middle East and Africa rum market size was valued at USD 1,237 million in 2021 and is projected to reach USD 1,512 million by 2031, registering a CAGR of 1.9% during the forecast period (2022-2031).

Highlights

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

Rum is strong alcohol made by fermenting sugar, molasses, and other things from them. At times, yeast is also used in the process of fermentation. The sugar juice or molasses is fermented, and water is distilled to make liquor. The liquor is then heated to remove the alcohol and cooled again to make Rum. Different kinds of Rum are on the market, like light, gold, spicy, flavored, dark, and over-proof Rum. Most cocktails use light Rum, also called silver or white Rum. Rum is among the most famous liquors used to make cocktails, like the mojito and the daiquiri. Rum's sweet taste makes it easy to mix with other things, and every well-stocked bar needs it. It's everything from the tiki scene's great tropical drinks to the winter's warmish drinks.

Market Dynamics

Middle East and Africa Rum Market Drivers

Increasing Demand from the Tourism Industry

The region is a well-liked tourist site; many tourists come to sample the local drinks. As more tourists visit the area, the demand for rum products grows as people look for authentic and unique experiences. Dubai's local bar and nightlife scene, a large international tourism hub, has expanded dramatically in recent years, emphasizing creative cocktails and mixed drinks. As mixologists and bartenders search for novel and creative ways to include Rum in their cocktails, this trend has increased demand for rum goods. For instance, the Skyview Bar at the Burj Al Arab Hotel has a menu of more than 200 cocktails, many of which are rum-based and include names like the "Zombie" and the "Mojito." Since tourists are becoming more interested in trying local and regional spirits and experiencing the distinctive flavors and culture of the region, the rise of the tourism industry in the GCC region is opening up new potential for the rum market.

Middle East and Africa Rum Market Restraints

Strict Government Regulations

Alcohol consumption is strictly regulated in many of the nations in the region, and in some cases, it is forbidden for ethical or cultural grounds. Alcohol sale and use are strictly forbidden in Saudi Arabia, and those who do so may be subject to harsh punishments like jail time and fines. This poses serious problems for the country's rum business because it reduces the pool of potential consumers and makes it challenging for companies to compete. However, there are tight rules regarding alcohol usage in Kuwait and Qatar. For instance, in Qatar, people can only buy alcohol from establishments with government authorization. Additionally, the government levies a high tax on the sale of alcohol, which may increase the cost to consumers and reduce demand.

Middle East and Africa Rum Market Opportunities

Rising Disposable Income

There is a general upward trend in discretionary income in several of the region's countries, especially among the middle class. This might result in people spending more money on expensive spirits like Rum, especially when consumers' tastes and sophistication evolve. Spirits like Rum are among the high-end luxury goods widely distributed in the UAE. The nation has a sizable ex-pat community and a booming tourism sector, contributing to the demand for luxury spirits. Consumers in the UAE are becoming increasingly interested in craft and artisanal spirits, which presents a chance for rum businesses that can provide distinctive and one-of-a-kind goods.

Regional Analysis

The Middle East and Africa market are segmented into GCC countries, South Africa, and the Rest of the Middle East and Africa. The GCC countries dominated the market and are expected to grow at a CAGR of 1.1% during the forecast period.

The UAE, Kenya, and South Africa are among the world's top rum consumers. Due to the rise in tourists and ex-pats in the Middle East and Africa, Rum is becoming increasingly popular among on-trade enterprises like pubs, restaurants, and hotels. By 2020, there will likely be about 30 million visitors in the UAE, according to the Department of Tourism and Commerce Marketing. Consequently, there is a high demand for Rum in the area. In 2019, it was anticipated that more than 6 million liters of spirits, including Rum, would be sold in the UAE alone. As a result, num manufacturers have many options to profit from the market and consider several avenues for growth in the local market. In addition, the rising demand for premium Rum and the escalating trend toward unusual and novel flavors support the expansion of the regional rum market.

Due to the COVID-19 pandemic's outbreak, which caused supply chain disruptions globally and locally, the market under consideration in the area was significantly impacted in 2020. To stop the sickness from spreading, the governments of many nations in this area shut their borders and implemented statewide lockdowns. Closing liquor stores will impact the region's market's growth in 2020. However, the discovery of the COVID-19 vaccine and the implementation of safety measures to stop the spread of the disease caused the market in the region to begin to rebound in 2021.

Segmental Analysis

The Middle East and Africa 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 1.5% 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 1.8% over the forecast period.

Recent Developments

• March 2023- Bacardi promoted Stephanie MacLeod to drive whisky premiumization and growth.