Saturday, January 2, 2016
Global Rum Consumption
The IWSR Magazine
By Daniel Mettyear
Global round-up Global rum consumption has been on the slide. The market lost 7.7million cases between 2011 and 2014 and, according to the IWSR's latest Forecast Report, little change is expected as the global rum market is predicted to shed a further 4.4 million cases by 2020. In the past this could have been firmly attributed to continued losses in the large low-priced and value-oriented markets such as India and the Philippines (which account for 40% of global rum consumption), but in 2014 eight of rum's top 10 markets faced volume declines - France and Cuba were the only markets to remain in the black. For the rum industry this news is cause for concern, but no reason to panic; while some declines are down to a more general move away from rum, others are being caused by premiumization, as the drinking less but better mantra applies. Indeed, the global premium-and-above rum market now sits at around 6.75 million cases, having risen by an impressive 7.7% in 2014. Only premium-and-above gin grew faster. Furthermore, this vein of good form is set to continue as the IWSR expects premium-and-above rum to add another 1.8 million cases by 2020.
This is a good/bad situation, it makes me very happy that the premium and ultra premium rums are showing growth, but the overall drop is reason for concern. It is going to take some work by those of us in the rum world to get the category back on track.