Global Rum And Cachaça Market Size, Share, Opportunities, And Trends By Product Type (White Rum, Dark Rum, Spiced Rum, Flavored Rum, Cachaça), By Application (Beverages, Food Industry), By Distribution Channel (On-trade (Bars And Restaurants), Off-Trade (Retail)), And By Geography - Forecasts From 2024 To 2029

The Rum And Cachaça market is projected to show steady growth during the forecast period.

Alcohol is one of many popular beverages consumed by the general public. Alcohol beverages are fermented liquor, which includes beer, wine and other distilled spirits, that contain ethyl alcohol/ ethanol as an intoxicating agent. They are mainly fermented from sugars that are commonly found in fruits, berries, grains, and other ingredients, which include plant saps, tubers, milk, and honey. As per the data in Alcohol.org, Beer, lagers and cider are the highest consumed drinks among the alcohol beverage family, accounting for 396.76 billion litres each year, which includes different types of beer like light beer, super premium and premium beer, craft beer, popular known brands, flavoured mal beer, ice and malt liquor. Wine comes second in the most consumed alcoholic beverage, which includes types like Merlot, chardonnay, cabernet, pinot noir, pinot grigio, rose, zinfandel, sparkling, sauv, blanc, riesling, shiraz and many others. Spirits come third in most consumed, with Vodka, Cordials & liqueurs, rum, straight American whiskey, and tequila being the highest consumed in the spirits category. Rum accounts for 10.5% of consumption in the US market.

Introduction:

Rum is a well-known alcoholic beverage that is popular around the world, whereas cachaça is mostly known in the South American region, mainly Brazil. Rum is created by using molasses, which is cooked from sugarcane juice. Rum is a popular alcoholic beverage that originated and is enjoyed in the Caribbean region. Cachaça is the Brazilian version of rum, which is made from Brazilian-grown fermented sugarcane juice. This type of rum can only be made in Brazil, making it the country’s national spirit.

Market Drivers:

• Premiumization: One of the major growth drivers for the  rum and cachaça market growth is the premiumization of alcoholic beverages. The factors that increase the demand for premium products are an increase in income and urbanization. Due to an increase in income, consumers will have a change in preferences, which will include premium alcoholic beverages and high-quality, authentic spirits. As per the Annual Economic Briefing by the Distilled Spirits Council of the United States, 61% of the total revenue of spirits accounts for high-end and super-premium alcohol beverages, which shows an increase of 5.1% total revenue growth and 4.8% total volume produced from 2021 to 2022. Hence, the premiumization of spirits is expected to increase in demand and will able to contribute to the rum and cachaça market growth during the forecasted period.

Key Players:

• Bacardi: Founded in Cuba, Bacardi is one of the largest family-owned spirits companies in the world and is known for its wide variety of products, which include white rum, dark rum, gold rum, reserva, spiced rum, flavoured rums, cocktail in a bottle, and cocktail in a can.
• Captain Morgan: Originating from Jamaica, Captain Morgan is one the world leaders in the production of rum. They have the rum recipe by starting with sweet juices mixed with sugarcane and secret spices and ageing it in white oak barrels. They have a wide range of products, which include white rum, cherry vanilla, silver spiced rum and many others.
• Santa Teresa 1796: Santa Teresa is a Venezuelan company that is well known for their super-premium spirits, with rich and refined rum products made from high-quality sugarcanes from the Hacienda Santa Teresa real estate, where all the production and sugar cane cultivation takes place. Their rum consists of the super-premium solera rum brand, which has a unique and complex production method of rum blends that are aged up to 35 years in bourbon oak barrels, which is then further aged using the artisanal solera method providing the rum with a unique taste and character.

Regional Analysis:

The U.S. is expected to witness significant growth in the Rum market and Brazil is the global leader and is expected to witness significant growth in the cachaça market. The factor that leads to the growth of the spirits market in the U.S. As per the Annual Economic Briefing by the Distilled Spirits Council of the United States, the spirit industry showed a significant growth of 7.5% in the 2018-2022 time period. Rum accounted for 24.1% of the total spirits that are sold in the market.  Whereas, in the case of cachaça, Brazil remains the sole producer of Brazilian rum due to the ingredient required for the production of Cachaça, which is created using Brazilian-grown fermented sugarcane juice. As the consumption of spirits increases, it will provide the necessary fuel for the rum and cachaça market growth during the forecasted period of 2024-2029.

Market Developments:

• November 2023: The world-famous music band, The Rolling Stones, announced the release of their new Caribbean Rum, dubber Crossfire Hurricane. They collaborated with Universal Music Group and Socio Ventures to produce their first premium rum brand, which will be distributed across the whole world. The thoughtfully blended run consists of rums that were aged in carefully selected oak barrels and the drink boasts flavours of caramelized bananas with a gentle hint of tropical fruit.
• August 2023: Novo Fogo, a Brazilian cachaça brand, announced the release of passion fruit cachaça which was made in collaboration with SOFI TUKKER, a multi-Grammy nominated dance music celebrity. This product was dubbed Drinkee and provides the beloved flavours of Brazil in a bottled spirit that contains the taste of the fresh tropical flavour of any cocktail. This product was produced by infusing their Silver Cachaça with passion fruit, vanilla, orange peel, pure cane sugar, and oak from their barrels.

Segmentation:

• By Product Type:
  • White Rum
  • Dark Rum
  • Spiced Rum
  • Flavored Rum
  • Cachaça
• By Application:
  • Beverages
  • Food Industry
• By Distribution Channel:
  • On-trade (Bars and Restaurants)
  • Off-Trade (Retail)
• By Geography:
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others