Wednesday, August 3, 2016
This is not a good headline to see first thing in the morning. What I am hoping is that people are going to be drinking more of the premium rums and less of the large production types. I know that as I find the better premium and ultra-premium rums I am buying to sip, I tend to drink less volume and enjoying the quality spirits in smaller volumes more. I feel that too much of the tampering and flavoring of the product, especially in the high volume expressions has taken its toll. It is time to make the product a bit better overall.
The latest joint research from just-drinks and The IWSR has predicted that the global rum market will decline over the next five years. A new Just Drinks / IWSR Report has forecast a compound annual drop of 0.5% between 2016 and 2021, representing a decline of almost 3.7million cases, with rum's top three markets – India, the US and the Philippines – all expected to record falls. The predicted five-year dip follows a decline of 0.8% in 2015 to 141.8m nine-liter cases, with nine of the top 20 markets and four of the top five registering declines. Between 2010 and 2015, the sector registered a compound annual growth rate of 0.6%. The 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 declines will be seen in high-volume, low-value markets.
While overall category volumes are on the decline, the report notes that the super- and ultra-premium rum categories are "still expanding at a healthy rate". Nevertheless, in premiumization terms rum continues to under perform compared to rival spirits categories, such as Scotch whisky and Cognac, with the super- and ultra-premium price segments accounting for less than 0.5% of sales.
Read More at http://www.just-drinks.com/market-research/global-rum-insights-market-forecasts-product-innovation-and-consumer-trends_id260118.aspx