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In 2025, rum sits at a critical crossroads. On one hand, the category is experiencing robust growth in premium segments, with global brands investing heavily in new product development and marketing. On the other, sales and volumes have plateaued - or even declined - in key markets like the US, where stiff competition from rival spirits, a lack of new brand entrants, and supply chain hurdles have hindered further expansion. This piece draws on insights from leading sources to offer a complete view of rum’s trajectory, from spiced rum and RTDs to premiumization efforts across the globe.
The Global Rum Landscape: A Snapshot
Bacardi Still on Top
According to Drinks International, Bacardi remains the top-selling global rum brand for 2024, dominating house pours in 20% of surveyed bars, followed by Havana Club. Meanwhile, Maison Ferrand’s Plantation (often listed as Planteray in some data) ranks as a rising star, poised to become 2025’s top-trending rum for its craftsmanship and hype.
Steady Growth, but at Varied Paces
IWSR data reveals an overall 9% global growth for rum between 2021 and 2022, slowing to a 2% compound annual growth rate (CAGR) for 2022–2027. Premium-and-above rums also grew 9% in 2022, but a slower rate of +2% CAGR is expected going forward. Interestingly, the super-premium-and-above tier is forecast to see 6% CAGR - indicating that while premiumization might be modest, ultra-premium stands out as a key growth driver for the future.
Key Insight for Marketers
Brands must clarify and convey their unique quality credentials, especially as high-end rums remain cheaper relative to whiskey or tequila. This affordability gap can be leveraged, but only if consumers understand the brand’s authenticity and quality ladder.
Regional Highlights and Disparities
The US: Mixed Signals
Despite being the world’s largest rum market, rum has faced headwinds in the US. IWSR’s US Navigator data shows:
- 5% decline in total rum from Jan–Jul 2024 vs. the previous year.
- Flavored rum (43% of total US rum) leads the decline.
- Premiumization is happening mainly from Value to Standard price tiers. Premium-and-above rum is only 7% of the market, up 1% from 2019.
Florida stands out for high standard-tier growth (from 15% to 43% share since 2019), while New York has seen premium-and-above gain five points to reach 12% share.
Implication:
- US marketing must address the perceived lack of innovation. Brands able to highlight unique production methods, local tie-ins, or bold flavor experiences could capture disaffected consumers from whiskey or tequila.
- The surging popularity of rum-based RTDs suggests one pathway for rejuvenating interest.
The UK: Surpassing Whisky in On-Trade
The UK’s on-trade rum sales passed the £1 billion mark in 2023, outpacing whisky. Dark rum (+5% growth) outshines golden and white categories, fueled by spiced sub-variants. Super-premium-and-above rums are also forecast to grow by 8% (CAGR 2022–2027).
Implication:
- Younger demographics in the UK seek brand experiences that integrate music, art, or cultural collaborations (e.g., Bounty’s presence at Notting Hill Carnival).
- The UK is open to new brand entries - like Ciara-backed Ten To One - which rely on robust on-premise programs and local influencer tie-ins.
Europe and Emerging Markets
- France, Germany, Italy: The super-premium-and-above tier is making headway, often through brand-led education on sipping rums.
- Emerging markets like Turkey, China, and India hold unexploited potential as more consumers explore cocktails and local rum-based experiences.
Drivers of Growth and Innovation
Dark Rum Leads Premiumization
From The Spirits Business and IWSR data, dark rum drives the lion’s share of premium growth. Premium-and-above dark rum grew from 11% of the segment in 2019 to 17% by 2024, dwarfing white or flavored rum’s premium expansions (4% share).
Marketing Tip:
- Emphasize aged expressions, terroir stories, or specialized cask finishes. Communicating authenticity - like single-distillery sourcing or transparent labeling about aging - can substantiate premium price points.
Spiced Rum Retains Popularity
Despite the spotlight on dark and aged offerings, spiced rum remains a worldwide favorite, valued at US$7 billion in 2024 and projected to reach US$10 billion by 2030. Brands that incorporate novel ingredients (e.g., exotic spices, fruit infusions) can attract younger consumers looking for adventurous, easy-drinking serves.
RTDs: Potential Category Catalyst
While rum’s overall US volumes slip, RTDs featuring rum show modest expansions. Captain Morgan & Vita Coco’s collaboration is one instance. Globally, RTDs are predicted to grow 12% in volume from 2025 to 2027, and rum-based products could gain significant traction if they tout premium or authentic rum credentials.
For Marketers
- Position rum-based RTDs as high-quality, “tropical” refreshment solutions. Educate consumers on the difference between malt-based vs. genuine spirit-based cocktails in cans or pouches.
Read also: Alcohol Marketing 2025 Trends and Forecast
Key Challenges
Lack of Unified Regulations
A repeated theme in the reports is the lack of a standardized production framework for rum - contrary to categories like Scotch or tequila. Ambiguity around labeling (e.g., sugar additions, age statements, or distillation methods) undermines consumer trust in premium rum.
Potential Solutions:
- Partner with independent associations or groups advocating clearer rum classifications.
- Transparent labeling that details cask origin, sugar content, and production technique.
Overreliance on Flavored/Value Tiers
Flavored and value segments still dominate in the US at 42–43% share, overshadowing efforts to move up the price ladder. Coupled with fewer new brand entries, consumer excitement suffers compared to dynamic categories like American whiskey or agave spirits.
Inflation and Economic Pressures
Across Western Europe (and to an extent the US), inflation dampens discretionary spending. As such, mainstream “party rums” face heightened price sensitivity. This environment can boost mid-tier standard rum at the expense of value, although super-premium expansions may slow unless strong brand narratives justify the higher cost.
Strategies for Rum Marketers in 2025
- Leverage Dark & Aged Expressions
Emphasize cask selection, unique fermentation styles, and terroir to distinguish premium or super-premium dark rums from standard or flavored options. - Transparency & Education
Publish clear details on aging, sugar additions, and distillation. This fosters a “trusted brand” aura. Some producers are exploring digital tools like QR codes linking to fermentation or single-farm sourcing data. - RTD Alignment
Collaborate with recognized beverage or food brands to create rum-based RTDs that highlight authenticity. Be certain to label them as “spirit-based” cocktails rather than malt-based imitations. - Localization & Cultural Tie-Ins
- UK: Tie in with festivals like Notting Hill Carnival or partner with local artists.
- US: Attend or sponsor regional rum fests (e.g., Texas Rum Fest, Florida Rum gatherings) to excite local consumers and highlight state-specific brand strategies.
- Emerging Markets: Adapt ABV levels or flavor profiles to local palates.
- Premium Partnerships & Celebrity Endorsements
Although brand partnerships with high-profile figures (Lil Wayne for Bumbu, Ciara for Ten To One) can spark consumer curiosity, ensure authenticity. A forced celebrity tie-in can backfire if it doesn’t align with the brand’s heritage or story. - Distribution Flexibility
Some rum-based RTDs are distributed via beer wholesalers, while aged expressions go through traditional spirits channels. Evaluate which route best suits your brand’s identity and ensures maximum consumer reach.
Read also: Alcohol Sales Guide - How to Increase Alcohol Sales
Conclusion: 2025 Outlook and Beyond
The global rum market stands at a vital juncture. We think rum’s biggest opportunities lie in premiumization - especially for dark, aged, and spiced variants - while capturing younger audiences through RTD innovations and no/low alternatives. The category’s performance remains uneven: dynamic growth for certain brands in the UK or Europe, contrasted by stagnation or slight decline in the US.
Ultimately, success for rum marketers in 2025 hinges on moving beyond rum’s old reputation as a cheap party mixer, delivering transparent stories around craftsmanship, forging strong local and on-trade partnerships, and riding the wave of cocktail culture’s continuous evolution. If the category can unify around consistent messaging and product standards, the industry can convert rum’s potential into a reality rivaling that of tequila or single-malt whisky. With steady strategic execution - education, brand authenticity, packaging innovation, and localized event marketing - rum brands can push the category forward, ensuring that the “rum-boom” mantra becomes more than just hype.
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