🍹Market Analysis

From Sugarcane to Liquid Gold

“Rum has all the characteristics you need for an investment spirit,” explains Grier. “There’s limited availability, often a real story of provenance from distilleries that are a century or older, and the liquid itself has many of the characteristics of single malt. It’s interesting and rich and complex.”

Here we highlight the growing demand for rum, particularly in the premium and ultra-premium spirits market. The global rum market size was valued at $15.6 billion in 2020 and is projected to reach $21.9 billion by 2026, with a CAGR of 5.4% during the forecast period. The market is typically segmented based on the type of rum, with the dark rum segment accounting for over 50% of the global rum market in 2020.

The premium rum segment is expected to witness the highest growth rate during the forecast period, with a projected CAGR of 7.1%. The combined premium rum segment will reach $9.7 billion by 2026.

The uniqueness of Rum comes from multiple aspects of its provenance, production methods, and regulations. Because it is produced in warm countries, with a high evaporation rate, this helps keep quantities of vintage Rum down.

Just for reference and comparison, the global market for collectible whisky has increased in recent years and was valued at approximately $8.04 billion in 2020. Demonstrating financial gain opportunity, but also a meaningful and memorable experience.