The rum industry has long anticipated a surge in sales, mirroring the apparent growth of whiskey and tequila. However, a significant challenge has emerged: rum is experiencing a disappointing compound annual growth rate of -3% from 2018 to 2024, according to IWSR data. This rate has even dipped to -7% from 2022 to 2024, a decline matched only by brandy.
Despite these figures, rum’s supporters point to the growing similarities between barrel-aged rums and bourbon, and the shared flavor profiles of clear rums with agave spirits. “Rum is kind of stuck in neutral,” says Bryan Inman, widely known as “the Rum Champion,” and national brand ambassador for Haiti’s Rhum Barbancourt, who frequently crafts cocktails at West Hollywood’s Lucky Tiki.
The core issue appears to be the industry’s over-reliance on mass-market brands like Captain Morgan and Bacardi. Over 90% of rum sales originate within the standard-and-below category. Crucially, a significant portion of consumers don’t fully grasp the nuances and inherent quality of premium rums, and aren’t willing to pay a price premium to reflect this. This is exacerbated by the industry’s incredible diversity – sugarcane cultivation stretches across the globe, from New Guinea to Central America and beyond, resulting in an astonishing range of rum styles.
The COVID-19 pandemic briefly offered a temporary boost to rum interest, but this momentum has faded. Now, the industry acknowledges a critical need to re-educate consumers, highlighting the diverse quality and range available. Maggie Campbell, CEO of American Cane, succinctly states, “We want Americans thinking of themselves as rum drinkers.” The future of rum depends on shifting perceptions and emphasizing the spirit’s complex heritage and range of flavor profiles.
