United Kingdom Rum Market

Market Overview

The United Kingdom Rum market size was valued at USD 476 million in 2021 and is projected to reach USD 655 million by 2031, registering a CAGR of 3.0% during (2022-2031).

Highlights

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

Rum is produced from fermented sugarcane leftovers like molasses or juice. Rum is aged in oak barrels, which flavor and color it. European invaders introduced sugarcane to the Caribbean, where Rum began. White, silver, golden, amber, dark, and spiced rums exist. White Rum is lighter in flavor and color and is used in drinks. Golden Rum is aged briefly in oak barrels to enhance its flavor and color. Dark Rum has a richer flavor due to longer aging—cinnamon, vanilla, and nutmeg spiced rum. Rum can be drunk straight, mixed, or cooked—rum flavors cakes, sauces, and marinades.

Market Dynamics

The U.K. Rum Market Drivers

Premiumization

With so many premium and ultra-premium rums readily available, the trend towards premiumization, where customers are ready to pay more for high-quality items, has also influenced the rum market. Discriminating consumers frequently choose brands like Pusser's Rum, The Duppy Share, Chairman's Reserve, Ron del Barrilito, and Mount Gay Rum. These premium rum brands appeal to customers willing to spend more for a premium drinking experience because they have distinctive flavor profiles and high-quality ingredients.

The U.K. Rum Market Restraints

Growing Health Concerns Among Consumers

Rising health consciousness and a growing preference for healthier lifestyles have fostered low-alcohol rum usage. The global rum business is expanding, although it is being restrained by consumers' increasing choice of healthier drinks and libations. As a result, fewer people are drinking alcohol altogether. One of the most popular alcoholic drinks is Rum. However, consumers' rising preference for healthy lives and ways of living has led to increased abstinence from rum consumption. Rum is becoming less popular because it is known to lead to health problems. Regular rum consumption also lowers heart rate and results in chest pain. Long-term hazards of rum usage include depression, hypertension, cancer, and liver ailments. Reports on numerous research on alcoholism and its risks broadcast on media outlets, including social media, raise public awareness. Alcohol drinkers' demand for non-alcoholic beverages has increased due to more awareness. People are switching to non-alcoholic beverages of their own volition. The Office of National Statistics reports that since 2005, teetotalism in the U.K. has increased; in 2017, an estimated 20.4% of Great Britain's population was teetotal.

The U.K. Rum Market Opportunities

Innovation in Flavor and Product Offerings

The market presents rum brands with a significant flavor and product innovation opportunity. One brand of inventive Rum is Dead Man's Fingers, which has gained popularity in the U.K. due to its distinctive taste options. Dead Man's Fingers features various tastes, including coconut, coffee, and passion fruit, not generally found in Rum. The company also sells spiced and low-sugar versions of its Rum. Ableforth's Rumbullion! is another cutting-edge rum brand, a premium spiced rum flavored with Madagascan vanilla, orange peel, and cinnamon. Its distinctive flavor profile distinguishes it from other spiced rums and appeals to customers looking for something new.

Additionally, Ableforth's provides a Navy Strength Rumbullion! that has been aged for up to 15 years. A premium rum company called Bumbu Rum Co. offers a variety of rums that have been aged for up to 15 years as well as a spiced version flavored with a combination of botanicals and spices. In addition, Bumbu Rum Co. creates a Mai Tai cocktail that is prepared and ready to drink. This cutting-edge product selection allows consumers to enjoy a premium cocktail at home. Lastly, the London-based Duppy Share Spiced Rum is a spiced rum with botanical flavors, including ginger, orange peel, and vanilla. The company has gained popularity among cocktail connoisseurs seeking a more nuanced flavor profile.

Regional Analysis

The third-largest rum market in the world is in the U.K. According to food and drink researchers CGA, rum sales increased 7% in 2019, boosted by cocktails and new spiced and flavored rums.

The most recent results confirm an upward trend in rum demand. The Wine and Spirit Trade Association reports that spiced and flavored Rum sales in the previous five years have increased by 80% in the U.K. More than 5 million U.K. consumers now consume Rum outside the home, a 10% increase from the previous year. The surge in spirits sales is still driven by gin, whose on-trade sales have more than tripled in the previous five years, despite Rum being touted as the "next gin" in the industry. On-trade sales growth in 2020 is unachievable, given that all pubs, taverns, and restaurants in the U.K. have been closed for a few months due to COVID. Hence, this has paused the growth of the rum market.

Segmental Analysis

The United Kingdom 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 2.6% 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 1.5% over the forecast period.

Recent Developments

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