The Global RUM & CACHACA Market size was valued at USD 20.80 Billion in 2022 and is expected to surpass USD 39.88 Billion by 2031, expanding at a CAGR of 7.5% during the forecast period, 2023–2031. The growth of the market is attributed to the rising demand for buffers and rallying economy conditions in the Middle East and Asia Pacific.
Cachaca is a Brazil-based distilled spirit while rum originated from West Indies. Both rum and cachaca are produced using sugar; however, rum is produced using sugarcane waste while cachaça is made directly from the actual sugarcane. Millennials are the key consumer of these drinks across the globe, as rum and cachaca are relatively economical if compared with other spirits.
RUM & CACHACA Market Drivers, Restraints, Trends, and Opportunities
Manufacturers are focusing on innovating the manufacturing process and product offerings, which is stimulating the market growth.
Rising spending power of millennials is propelling the growth of the market.
Increasing inclination toward healthy lifestyle and fitness related activities is anticipated to encourage people to consume non-alcoholic drinks. Thus, such shift is expected to impede the growth of the market during the forecast period.
The COVID-19 pandemic have disrupted the economic conditions across the globe. This is due to the imposed lockdowns in the manufacturing facilities, which plummeted the sales of rum and cachaça. However, the market is slowly recovering and is expected to reach pre-COVID level till mid-2021.
Scope of RUM & CACHACA Market Report
The report on the global rum & cachaca market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
RUM & CACHACA Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
Types (RUM and CACHACA), Applications (Supermarket and Malls, Brand Stores, E-commerce, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered
Bacardi, McDowell's No.1, Celebration, Tanduay, Cachaca 51, Pitu, Captain Morgan, Havana Club, Brugal, and Contessa, Bracelo
Global RUM & CACHACA Market Segment Insights
In terms of types, the market is divided into rum and cachaca. The rum segment accounted for a large share of the market in 2020, in terms of revenue. This segment is projected to dominate during the forecast period. Major players such as are Bacardi and McDowell's No.1 are progressively innovating the rum’s manufacturing process. On the other hand, the inexpensive nature of rum as compared to other spirits. However, the cachaca segment is estimated to hold a significant share of the market during the forecast period. This is due to the increasing awareness and increasing penetration about the drink in emerging economies.
Based on applications, the global rum and cachaca market is segmented into supermarket and malls, brand stores, e-commerce, and others. The supermarket and malls segment is anticipated to account for a major share during the forecast period. Consumers are preferring offline stores owing to the ban of door step delivery of the products in several countries. On the other hand, the e-commerce segment is anticipated to create huge opportunities for players the global rum and cachaca market owing to the relaxation of stringent regulations in developed and developing countries.
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a considerable share of the market owing to the increasing number of restaurants and hotels in countries such as the US and Canada. Moreover, the presence of cold climate has encouraged people to consume distilled spirits in the afore-mentioned countries. Conversely, the market in Asia Pacific is anticipated to exhibit a high CAGR owing to presence of large younger population in countries such as India and China.
The global rum & cachaca market has been segmented on the basis of
- Supermarkets & Malls
- Brand Stores
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Major players competing in the global rum and cachaca market are Bacardi, McDowell's No.1, Celebration, Tanduay, Cachaca 51, Pitu, Captain Morgan, Havana Club, Brugal, and Contessa, Bracelo.
Key players are engaging in adopting several market strategies such as collaboration, product launch, R&D activities, and manufacturing capacity expansion to increase their market share and global presence.