Craft Rum Market Report 2025 (Global Edition)

Global Craft Rum Market Report 2025 Market Size Split by Product Type (Light rum, Gold rum, Dark/black rum, Rhum agricole, and Others.), by Pricing (Mass, Premium.), by Distribution Channel (On-Trade,...

Craft Rum Market Report Description

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Competitive Landscape of the Craft Rum Market

The craft rum segment is fast-growing and highly competitive, driven by increasing demand for premium and genuine spirits among younger consumers. The market is highly fragmented with several small distillers competing with major players such as Bacardi and Diageo. Some distinguished players are award-winning craft distilleries like Lyon Rum (Windon Distilling) in Maryland, Muddy River Distillery in North Carolina, Wicked Dolphin in Florida, Elgin Distillery in Arizona, and Three Roll Estate in Louisiana. They stand out from the crowd by applying local ingredients, different ageing processes, and small-batch distillations to produce distinguished flavours. For instance, in September 2024, Diageo India's wholly owned subsidiary, The Good Craft Co., launched its first sensorial experience home in Bengaluru, India, named The Flavour Lab. The business is looking to create a direct-to-consumer experiential ecosystem and raise awareness for craft spirits in India. Even with innovation and quality focus, craft rum brands will encounter stiff competition from entrenched players as well as new companies, which will make it difficult to develop strong brand recall. With more consumers demanding unique flavours and eco-friendly production, the industry only grows. Craft rum festivals, competitions, and social media campaigns become ever more crucial for brands to increase exposure and gain new consumers. Generally, the craft rum market is characterized by innovation, domestic sourcing, and a focus on quality, with both big and small players competing for their piece of a market projected to continue expanding in the next few years.

Source:https://www.diageoindia.com/en/news-and-media/press-releases/2024/the-good-craft-co-the-intersection-of-craft-community-and-innovation-of-spirits
Recent Developments

• In June 2024, Tidal Rum, a premium craft rum brand in the U.K., achieved its goal of raising approximately USD 315 thousand through crowdfunding.
• In January 2023, Diageo, a British liquor giant, announced the acquisition of Filipino rum brand Don Papa. Don Papa was founded in 2012 in the Philippines and made their rum in Negros Occidental using local sugarcane and aged in American oak barrels, which provided a rich taste and texture to the craft.

Source:https://www.thegrocer.co.uk/news/tidal-rum-returns-to-the-crowd-to-help-scale-premium-craft-brand/692361.article

https://www.diageo.com/en/news-and-media/press-releases/2023/diageo-to-acquire-don-papa-rum

Top Companies Market Share in Craft Rum Industry: (In no particular order of Rank)

• Bacardi Limited
• Suntory Holdings Limited
• Diageo
• Maine Craft Distilling
• LLC
• Charles Merser & Co.
• Drum & Black Rum Company
• Wicked Dolphin Rum
• Domaines Ellam and Arizona Craft Beverage
• Belize Spirits Marketing
• Inc.
• Rockstar Spirits Ltd.
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Which Region will dominate the Market in 2024, and Which Region is Expanding at the Fastest CAGR?

According to Cognitive Market Research, the Europe region dominated the market and accounted for the highest revenue of XX% in 2022 and it is projected that it will grow at a CAGR of XX% in the future. Europe is presently a top continent in the craft rum industry, with robust growth and creativity. The market is growing rapidly, with an estimated compound annual growth rate of more than 12% from 2025 to 2033, due to an increase in demand for premium and craft spirits, particularly in nations such as the United Kingdom, Germany, and France. European consumers are looking for distinctive flavour profiles, local ingredients, and premium craft products. The popularity of rum cocktails in restaurants and bars and the expanded retail availability of craft rum reinforce the trend. A number of European businesses are establishing themselves in this segment. The British Honey Company Ian MacLeod Distillers Ltd in the United Kingdom, and Remy Cointreau in France are investing in innovation and product development to capitalize on the demand for premium craft rums. These companies concentrate on sourcing local ingredients and testing new methods of ageing to produce unique products. Such as, in Feb 2021, the British Honey Company acquired Union Distillers, expanding its product line and market reach within the UK's off-trade market. The UK specifically is a centre of craft rum, with numerous distilleries and a highly developed market. In general, Europe's leadership in the craft rum industry is driven by a lively cocktail culture, high disposable incomes, and an increase in appreciation for artisanal and creative spirits. This has established a competitive market where both large companies and small craft distilleries can survive by selling distinct and high-quality rums to discerning drinkers.

The most rapidly increasing region of the craft rum market is North America, driven by a robust consumer base that will pay a premium and support artisanal products. The craft spirits phenomenon has taken huge traction in the United States, with more consumers seeking distinctive and high-end beverages. This has contributed to an increase in craft distilleries, leading to a diverse range of rum variants targeting various tastes and preferences. The area's rich cocktail scene has also been an important contributor, with both bartenders and consumers alike revelling in creating new and creative cocktails that incorporate rum as a primary spirit. For instance, Cardinal Spirits, a craft distillery based in Bloomington, Indiana, has just launched a single barrel of Blackstrap Rum as part of a limited edition, only available in Indiana, and the state's dedication to distinctive and high-quality craft rum experiences is evident in this release.

Source:https://www.cardinalspirits.com/blackstrap-rum?srsltid=AfmBOop1MfjBzkHBqc2o3BqdzEhdM8MhjF8obrmu5AQAIwbukeXggWKW

https://theoxfordmagazine.com/news/oxfordshire-based-british-honey-company-acquires-union-distillers-for-8m/

The current report Scope analyzes Craft Rum Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

Craft Rum Market Analysis

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Product Type Segment Analysis

According to Cognitive Market Research, based on type, the market is bifurcated into light rum, gold rum, dark/black rum, rhum agricole, and others. The dark/black rum segment dominates the largest market share of XX% during the forecast period Dark or black rum is the most widely consumed product type in the craft rum category due to its adaptability, complexity, and deep flavor profile. Craft distillers frequently choose dark rum because it allows for more experimentation with aging procedures, blending, and flavor infusion, resulting in an extensive range of complex and distinct flavors. Additionally, dark rum is often fermented for lengthier periods in charred oak barrels, adding rich, nuanced flavors of caramel, molasses, spices, and, on certain occasions, notes of tropical fruits or wood. These details appeal to consumers looking for premium and artisanal spirits with richness and character, therefore dark rum is a popular choice among craft distillers and consumers. Furthermore, the popularity of dark rum in traditional cocktails such as the Dark 'n' Stormy or Mai Tai strengthens its dominance in the craft rum market, since it is seen as a vital ingredient for producing unique and tasty beverages.
 

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Craft Rum Industry. Request a Free Sample PDF!

Pricing Segment Analysis

According to Cognitive Market Research, based on pricing, the market is divided into mass and premium. The Premium pricing segment dominated the market, accounting for around XX% of global revenue. Craft rum is typically handcrafted in small batches utilising high-quality ingredients, artisanal skills, and occasionally unique aging processes, resulting in higher production costs than mass-produced rums. Furthermore, craft distillers frequently prioritize sustainability, ethical sourcing, and community involvement, which contributes to increased production costs. Furthermore, the assumed worth of craft rum as a premium and artisanal product, combined with its scarcity and the narrative behind each bottle, enables craft distillers to charge higher rates. Consumers are prepared to pay a premium for craft rum because they believe it provides higher quality, authenticity, and a more meaningful drinking experience, making premium pricing the dominant strategy in the craft rum market.
 

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Craft Rum Distribution Channel Segment Analysis

Based on the distribution channel, the on-trade segment accounted for the xx% of market share in 2024. Pubs, restaurants, and bars are critical platforms for dispensing craft rum. High-end restaurants and bars are where most distilleries first introduce their distinctive and speciality products before they become available in stores. Such places are great for boosting purchases through trying new products, either for consumption or use in artisanal cocktails. On-trade outlets such as restaurants and bars provide individuals with the opportunity to taste craft rums within an interesting environment, usually through creative cocktails. This not only makes consumers relate to the brand on a better level but also inspires them to experiment with new and different rums. Producers can label craft rum as a premium drink by selling it in social environments, enabling them to achieve higher prices and a higher margin. The environment of restaurants and bars adds to the overall drinking experience and makes craft rum seem more luxurious and desirable. Moreover, the recent trend of sharing luxury beverages and cocktail experiences on social media further increases on-trade sales, as consumers are keen to flaunt their findings and experiences. Such a combination of exposure, experience, and social sharing is driving the growth of craft rum sales through on-trade channels.

• On-Trade
• Off-Trade

Author's Detail

Sneha Singh

Research Analyst at Cognitive Market Research

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I am a well-organized, conscientious, and professional Research Analyst with two three years of experience. In my current role, I conduct in-depth secondary research, data mining, competitive analysis, DRO's, PR, and Collateral writing. Whilst I enjoy working as part of a team, researching information, analyzing data, and producing results that help my organization to achieve its commercial and financial objectives.

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