The South & Central America high-end rum market was valued at US$ 336.63 million in 2022 and is expected to reach US$ 468.57 million by 2030; it is estimated to record a CAGR of 4.2% from 2022 to 2030.
Moreover, spiced rum is commonly consumed with Coca-Cola. Companies including Bacardi, Captain Morgan, and Altitude Spirits have introduced mix-flavored spirits in their product portfolio, which are popular brands of flavored rum globally. Spiced and flavored rum, such as Diageo's Captain Morgan spiced rum, which has a unique caramel and vanilla flavor is one of the most popular spiced rums globally.
In March 2023, the Kraken Rum-the renowned black spiced rum brand-expanded its product portfolio by venturing into the gold spiced rum category with the launch of a new product called "The Kraken Gold Spiced Rum." This product is aged for two years in oak barrels and has cinnamon, vanilla, and caramel notes. It is bottled at 40% ABV. Such product launches fuel the consumption of flavored and spiced rum, creating a huge opportunity for the growth of the high-end rum market.
Moreover, according to the Organization for Economic Co-operation and Development (OECD), Brazil consumes almost 33% more spirits than other alcoholic beverages. The changes in taste and the growing demand for small-batch, handmade beverages with unique flavor profiles contribute to the growing demand for high-end craft rum across the region. Thus, riding premiumization and preference for flavored craft rum in the region expected to boost the market share for high-end rum.
Growing Consumption of Flavored and Spiced Rum Fuels South & Central America High-End Rum Market
The population worldwide is more inclined toward consuming crafted flavored spirits and blends than traditional mass-produced spirits. Nowadays, consumers are looking for high-quality products with distinct flavors. Above all, the popularity of spiced rum and flavored spirits is increasing among young adults. Flavored rum offers a unique flavor to cocktails and rum cakes.Moreover, spiced rum is commonly consumed with Coca-Cola. Companies including Bacardi, Captain Morgan, and Altitude Spirits have introduced mix-flavored spirits in their product portfolio, which are popular brands of flavored rum globally. Spiced and flavored rum, such as Diageo's Captain Morgan spiced rum, which has a unique caramel and vanilla flavor is one of the most popular spiced rums globally.
In March 2023, the Kraken Rum-the renowned black spiced rum brand-expanded its product portfolio by venturing into the gold spiced rum category with the launch of a new product called "The Kraken Gold Spiced Rum." This product is aged for two years in oak barrels and has cinnamon, vanilla, and caramel notes. It is bottled at 40% ABV. Such product launches fuel the consumption of flavored and spiced rum, creating a huge opportunity for the growth of the high-end rum market.
South & Central America High-End Rum Market Overview
According to WHO, in Latin America and the Caribbean, total alcohol consumption per capita was 6.3 liters in 2018. The urban population has contributed significantly to alcohol consumption. The growing urban population in South & Central America has shifted consumer preferences toward premium spirits, including high-end rum owing to rising trend of premiumization. The trend of socializing and entertaining at home has risen from COVID-19 pandemic. To maintain their standards high, consumers stock luxury spirits such as high-end rum in their houses for celebrations and social gatherings. Thus, the demand for high-end rum is increasing across the region.Moreover, according to the Organization for Economic Co-operation and Development (OECD), Brazil consumes almost 33% more spirits than other alcoholic beverages. The changes in taste and the growing demand for small-batch, handmade beverages with unique flavor profiles contribute to the growing demand for high-end craft rum across the region. Thus, riding premiumization and preference for flavored craft rum in the region expected to boost the market share for high-end rum.
South & Central America High-End Rum Market Segmentation
The South & Central America high-end rum market is categorized into product type, category, nature, distribution channel, and country.- Based on product type, the South & Central America high-end rum market is categorized into white, dark, and gold. The gold segment held the largest market share in 2022.
- In terms of category, the South & Central America high-end rum market is segmented into super premium, ultra-premium, and prestige & prestige plus. The super premium segment held the largest market share in 2022.
- By nature, the South & Central America high-end rum market is bifurcated into plain and flavored. The plain segment held a larger market share in 2022.
- In terms of distribution channel, the South & Central America high-end rum market is categorized into supermarkets and hypermarkets, specialty stores, online retail, and others. The specialty stores segment held the largest market share in 2022.
- By country, the South & Central America high-end rum market is segmented into Argentina, Brazil, Colombia, and the Rest of South & Central America. The Rest of South & Central America dominated the South & Central America high-end rum market share in 2022.
Table of Contents
1. Introduction
2. Executive Summary
3. Research Methodology
4. South & Central America High-End Rum Market Landscape
5. South & Central America High-End Rum Market - Key Market Dynamics
6. High-End Rum Market - South & Central America Market Analysis
7. South & Central America High-End Rum Market Analysis - By Product Type
8. South & Central America High-End Rum Market Revenue Analysis - By Category
9. South & Central America High-End Rum Market Revenue Analysis - By Nature
10. South & Central America High-End Rum Market Revenue Analysis - By Distribution Channel
11. South & Central America High-End Rum Market - Country Analysis
12. Industry Landscape: High-End Rum Market
13. Company Profiles
14. Appendix
Companies Mentioned
- Pernod Ricard SA
- Davide Campari Milano NV
- Brown Forman Corp
- Diageo Plc
