LONDON, March 24, 2015 /PRNewswire/ --
A new report from just-drinks and The IWSR has forecast value growth in the coming four years for the rum sector, in spite of a continuing decline in the sector's volume performance.
The report, entitled 'Global rum insights - market forecasts, product innovation and consumer trends research' and released this week, sees total volumes in the rum sector dropping by a compound annual growth rate (CAGR) of 1.73% between 2014 and 2019, representing a decline of more than 12m cases. Most of this decline, however, will occur at the low-priced end of the market.
When value and low-priced rums are stripped out, volumes are set to increase by well over 5.5m cases, reaching nearly 64.5m cases by 2019.
While large markets for locally-produced rums will decline - India and the Philippines, for example, losing a total of more than 17m cases in 2014 to 2019 - key import markets for premium rums will grow. The US, for instance, will add nearly 1.5m cases of higher-priced rums in the five-year period to 2019, with growth also coming from markets such as the Dominican Republic, Germany, France, Cuba and Italy.
The forecast trend for 2014 to 2019 will follow the regional and segment-by-segment patterns seen between 2008 and 2013, according to the report.
The global rum market is dominated by standard-and-below qualities, which accounted for 95.8% of all sales in 2013, but were down from a 97% share in 2009. Premium-and-above qualities, meanwhile, accounted for a substantial 6m cases in 2013, up from 4.15m cases in 2009.
While the low-price (+1% CAGR), value (+1% CAGR) and standard (+1.5% CAGR) rum market segments recorded moderate growth between 2008 and 2013, higher qualities such as premium (+7.8% CAGR), super-premium (+9.2% CAGR) and ultra-premium (+48.1% CAGR) all "outpaced the market", the report states.
While the white rum category was virtually flat between 2008 and 2013, recording a CAGR of -0.3%, golden rum posted a CAGR of 2% between 2008 and 2013.
Other future growth engines identified in the report are flavoured rum and spiced rum, which recorded compound annual growth rates of 8% and 9% respectively between 2008 and 2013.
For full details see the Global Rum Insights report from just-drinks and The IWSR.
Established in 1999, just-drinks is the online resource for the global beverage industry, publishing around 20 news articles, analysis features and insights every working day. Under the direction of managing editor Olly Wehring, its experienced team of journalists, consultants and analysts provide a unique and comprehensive blend of reports and interpretation of the beverage industry, including key events, trends, interviews and research that are delivered to over 92,000 business executives per month.
Through its drinks industry analysis, research, news and CONSULT bespoke market research service, just-drinks offers insight into wine, beer, spirits, soft drinks, and bottled water industry developments, statistics and key supply-chain trends.
For details of how just-drinks is helping decision makers make decisions, visit http://www.just-drinks.com
About The IWSR
The IWSR is the leading source of data and analysis on the alcoholic beverage market. The IWSR's database, essential to the industry, quantifies the global market of wine, spirits, beer and RTDs by volume and value, and provides insight into short- and long-term trends. IWSR statistics are used by all of the largest multinational wine and spirits companies, as well as many more local companies.
The IWSR's unique methodology allows them to get closer to what is actually consumed and better understand how markets work. The IWSR conducts face-to-face interviews with 1,500 companies in 118 countries each year, with further input from 350 companies. The IWSR tracks overall consumption and trends at brand, quality and category level.
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SOURCE just-drinks.com / The IWSR