The rum market size in Latin America was worth USD 1.26 billion in 2023. The Latin American market is expected to grow at a CAGR of 6.39% from 2024 to 2029 and be worth USD 1.34 billion in 2024 and USD 1.83 billion by 2029.
Rum is a distilled alcoholic beverage produced from sugarcane by-products, like molasses, or directly from sugarcane juice, through fermentation and distillation. The distillate, a clear liquid, is then commonly aged in oak barrels. Increased Demand for Premium Brands and the Popularity of Cocktail Culture are the primary drivers of this market. High Competition from Non-alcoholic Beverages is the major challenge in this market.
Rums are manufactured in several grades. Light rums are usually used in cocktails, whereas "golden" and "dark" rums are usually consumed straight or neat, on the rocks, or used for cooking, but these days are consumed with mixers. Premium rums are produced to be consumed either straight or iced. Segmenting rum into meaningful groupings is difficult because no single standard exists for what constitutes rum. Therefore, rum is defined by the varying rules and laws of the nation’s manufacturing of the spirit. The differences in definitions are issues such as spirit proof, minimum aging, and even naming standards. The grades and variations utilized for describing rum depend on the location of its production.
In spite of these variations, the following terms are commonly used to describe different types of rum - Dark rums, Flavoured rums, Gold rums, Light rums, over-proof rums, Premium rums, and Spiced rums. Super and ultra-premium rum segments are "still growing robustly". Nonetheless, rum continues to underperform in contrast to rival spirits segments, for example, Scotch whisky and Cognac, with the super and ultra-premium price categories accounting for less than 0.5% of sales.
This research report on the Latin American rum market has been segmented and sub-segmented based on the following categories.
Latin America Rum Market – By Product Type:
Latin America Rum Market - By Distribution Channel:
Latin America Rum Market – By Country:
A very significant amount of the world's rum production happens in Latin America. This report notes that while only two of rum's ten largest markets - Cuba and the Dominican Republic - are set to grow over the coming five years, the heaviest deteriorations will be seen in high-volume, low-value markets. Few of rum's other significant markets are projected to enjoy better fortunes, notably Brazil and Venezuela. In the meantime, Peru is projected to grow strongly over the forecast period.
KEY MARKET PARTICIPANTS:
Companies playing a leading role in the Latin America rum market include Bacardi, Diageo, Pernod Ricard, Tanduay, Amrut Distilleries, Beam Suntory, Gruppo Campari, Matusalem, Mohan Meakin, Patron Spirits, Pusser's, Radico Khaitan, Ron Bermudez and Ron Edmundo Dantes.
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