The rum market - Spain (2023)

1.2 World rum market on the rise

The spirits industry had been hard hit by the restrictive measures induced by the pandemic: the ban on going out and the absence of festive or social occasions led to a drop in spirits sales and consumption. In ****, the sector began to recover, and market growth was estimated to accelerate to ***.** billion US dollars by ****, with a compound annual growth rate of *%.

In ****, the global spirits market is estimated at ***.** billion dollars. This market is expected to reach US$*** billion in ****, with a compound annual growth rate of *.*%.

Global spirits market size World, ****-*****, in billions of US dollars Source: ****

The ...

1.3 The European rum market

Rum sales volume trends and forecasts Europe, ****-*****, million liters Source: ****

The graph above shows the evolution of the value of European rum sales in volume (***), sales had an annual volume of ***.** million liters. Between **** and ****, sales volume evolved with a CAGR of *.**%, and the average annual sales volume is *** million liters. Forecasts indicate a steady growth trend for rum sales volumes in Europe up to ****, with ***.** million liters in ****. Over this forecast period, sales volume evolves with a CAGR of *.**%, and the average annual sales volume is *** million liters. Over the whole period, ****-****, the CAGR is *.**%.

1.4 Spain's sawtooth market

The Spanish spirits market is mainly made up of * strong spirits, all vying for leadership in consumption: whisky, gin, brandy and rum. While in **** rum recorded a sharp rise in consumption by Spanish households, unlike its competitors, which recorded a decline, it is above all in **** that rum consumption will record a significant rise in consumption, as shown in the graph below.

Spirits consumption trends, by type of spirit Spain, ****-****, base *** in **** Source: Mercasa in ****, rum was the third strongest spirit consumed by Spaniards, with *.* million liters, after whisky (***).

Volume of spirits consumed by Spanish households, by type Spain, ****, in ...

1.5 Foreign trade in rum

thanks to information from UN Comtrade and Code: ****** - Rum and other spirits obtained by the distillation of fermented sugarcane products, we can see that Spain's trade balance is negative, meaning that Spain is a net exporter of rum.

Evolution of the Spanish rum trade balance Spain, ****-**** in millions of $ Source: ****

germany is the leading destination for Spanish rum sales (***)/

Main destinations for Spanish rhu exports Spain, ****, in Source : UN Comtrade spain imports rum mainly from Latin American countries: the Dominican Republic (***).

Main origins of Spanish rum imports Spain, ****, in Source: ****

2.1 Rum consumer profile

spaniards are fairly moderate consumers of rum. In ****, there was a rare peak in consumption of *.* million liters, but historical and recent figures point to consumption of around *.* million liters, as in ****.

Who are the Spaniards who drink rum?

Rum consumption by Spanish households Spain, ****-****, in millions of liters Source: Ministry of Food Firstly, we can see that the majority are adult couples without children (***). Distribution of rum consumers by status Spain, ****, in Source: Ministry of Food in **.*% of cases, consumers have no children, or the child is aged between * and ** (***).

Distribution of rum consumers by children Spain, ****, in Source: ...

2.2 Demand drivers

Overview of spirits consumption in Spain

Spirits consumption has fallen sharply in recent years. In ** years, per capita consumption of pure alcohol has fallen from *.** liters per person in **** (***) to *.** liters per person in ****, under the influence of public policies to raise awareness of the dangers of alcohol. Spirits consumers are becoming increasingly reasonable, and are increasingly choosing quality over quantity.

Spirits consumption per person Spain, ****-****, liters per person aged ** or over Source: ****

Selection criteria

Collecting the finest distilled spirits is currently an important and growing trend. Although rum has been a typical part of fine wine and distillate enthusiasts' ...

2.3 Spanish preferences

Favourite brands :

Ron Barceló Añejo: Spain's leading rum brand in ****

In Spain's dynamic spirits market, Barceló Añejo rum emerged as the leading brand in terms of sales in ****, establishing itself as one of the best-selling rum brands in the country, according to the International Spirits and Wine Report (***).

The year **** marked a turning point in the history of Barceló Añejo in Spain, with a notable increase in demand. Its smooth, complex aromatic profile, characterized by notes of vanilla, caramel and oak, has won over Spanish palates, consolidating its position as one of the country's best-selling rum brands. The ...

3.1 The rum industry value chain

Numerous players are involved throughout the chain before the rum reaches the end consumer:

The first players in this chain arefarmers or agricultural cooperatives, as well as distillers (***). Eaux-de-vie and spirits manufacturers then carry out additional production stages; Intermediaries (***) provide the link between manufacturers and distributors; Three types of distributor can be distinguished in this market: food superstores, out-of-home consumers such as cafés, hotels and restaurants, and specialized retailers and duty-free outlets.

The rum market value chain is summarized below.

3.2 Spanish rum production

spanish rum production peaked in **** at *.* million euros, rising to *** thousand euros in **** . Spanish rum production value Spain, ****-****, in thousands of euros Source : INE as regards the breakdown of companies and employees, we will take a broader view of the figures for the spirits vertical in general, as specific figures for the rum segment are absent. Spain is the sixth largest EU country in this market in terms of production. The spirits industry is present throughout the country, but especially in Andalusia, Catalonia, Galicia, Castilla-La Mancha, Navarre, Murcia and Rioja.

Companies and employees in the alcoholic beverage manufacturing industry Spain, ...

3.3 Rum distribution

The pandemic has led to a major shift in sales channels. In ****, the on-trade channel's market share was **%, but by **** it was down to **%. On the other hand, the food channel has gained weight over the years.

Market share of the on-trade channel Spain, ****-****, in Source: mercasa rum consumption is closely linked to the on-trade and off-trade channels. According to the Federation, **.*% of the revenues of leisure establishments depend on these drinks.

Rum sales by distribution channel Spain, ****, in Source: ****

according to the Ministry of Food, nearly **% of rum sales are in supermarkets and **% in hypermarkets.

Rum accounted for ** thousand ...

4.1 Types of rums on offer

Rums can be segmented in different ways:

industrial rums vs. agricultural rums by age imported rums

These rums can be used for a variety of purposes: disgorging or as a base for cocktails

Types of rum Characteristics Examples of brands White rums White rum is light in color, generally sweeter in flavor and lighter in body than golden or dark rum. Saint James Amber or golden rums After a few months, rum aged in wooden casks (***) turns amber. This term refers to its color, but also reveals a different palette of flavors: light aromas of wood and spices, and a more ...

4.2 Price typology

The average price of a bottle of rum is set to rise, from €**.** in **** to €**.** in ****. The popularity of the product and the quest for higher-quality consumption have logically led to a substantial increase in prices

Evolution of the average price of a liter bottle of rum Spain, ****-****, in € Source: ****

price indices This increase in the average price of rum reflects a general upward trend in the prices of alcoholic beverages, and distilled beverages in particular. In Spain, the consumer price index for alcoholic beverages reached ***.* in ****, illustrating a sharp rise in the price of these beverages for the end ...

4.3 A more premium and environmentally-friendly rum offering

A premium offer:

Rum sales in Spain are growing steadily, and most of the brands that have emerged in this type of distillate are aimed at an exclusive, demanding audience.

There are therefore four main trends in the offer:

Differentiation. Consumers are less and less willing to consume standard products. As a result, complex, elegant and intense flavors, with a story behind each bottle, are more than attractive. Superior quality. These days, consumption times are shorter and, for this reason, there is a tendency to drink less, but better, thus seeking premiumization of the product and even of the place where ...

5.1 Regulations

Rum complies with European Union and Spanish spirits standards .

Within the European Union, spirit drinks are governed by Regulation (***) No. ****/**. In addition, health and hygiene requirements for foodstuffs are harmonized by various EU horizontal provisions.

Article * of Regulation (***) no. ***/****.stricter rules than those laid down in Annex II of the said regulation as regards production, description, presentation and labelling, insofar as they are compatible with Community law.

At national level, although there is evidence of the existence of earlier rules, in the **s and early **s, given the importance of certain spirit drinks in Spain, and in application of Law **/**** of ...

6.1 Segmentation

• Diageo
• Bacardi
• PERNOD RICARD WINEMAKERS SPAIN SA
• Dugas (Stock Spirits)
• La Maison Du Rhum
• Zamora Company
• Grupo Osborne
• Beam Suntory