Close Menu

Spiced to boost UK rum market in 2022

The UK is the third-largest rum market in the world and is valued at £1.17 billion (US$1.47bn), according to a new report by Campari Group.

Campari Group rum
Campari Group owns Appleton Estate rum

The UK Rum Category Report by Campari Group UK analysed the sector in the UK market, with a focus on premium spirits, cocktails and the role of spiced rum.

According to IWSR Drinks Market Analysis data cited by Campari Group, out of the top 10 rum markets globally, the UK is forecast as having the highest compound annual growth rate (CAGR) to 2021 with 4.8% growth, taking the total value of the category to £1.17bn.

“Our rum report shows just how much of an opportunity we see rum being for the UK market in 2022 and the years ahead,” said Brad Madigan, managing director, Campari Group UK.

“The category is elevating itself far beyond what has previously been perceived as a rum-and-coke-dominated category, to one with endless opportunities within high-end cocktails and beyond.”

The report also highlighted premium rum as an important driver of growth for the category since 2021. Premium rum recorded an 18% increase in value sales in the off-trade in 2021 (Nielsen data), compared to a decline of 1.7% for the standard price segment.

The report noted that the category will continue to grow from the top end in the year ahead, led by the ‘greater appreciation’ for quality and the ‘drinking less but better’ trend.

Furthermore, in the on-trade, premium rum’s share of the total category has risen by 6.1% on 2019 (CGA data). A survey by Campari for the report found that more than two-thirds of UK drinkers said they would spend more for a quality drink – with a third of these consumers enjoying rum as their regular beverage.

According to Campari Group’s survey, 70% of consumers feel that if a rum has an age statement, they are more likely to see it as a high-quality liquid. As such, the report noted that aged rums can encourage dark spirit drinkers to explore the rum category.

Campari said the popularity of aged rum is expected to grow in the next few years, with the opportunity to further educate consumers around the different expressions on offer.

Flavour potential

The report also highlighted that spiced has been the key growth driver of the category in the UK over the last two years and is expected to continue to drive the sector forward in 2022.

In the on-trade last year, spiced/flavoured rum took a 6.3% share of spirits, an increase of 1.2% compared to 2019 (CGA data) with taste being the number one factor driving consumer interest in the subcategory.

Meanwhile, Nielsen figures in the off-trade found that spiced rum has grown by 9% compared to 2021. In addition, flavoured rum’s share of the category’s value in the UK off-trade increased by 4.3% from 2019 to 2021.

Campari’s survey emphasised the significance of rum styles in how consumers navigate the category, but there is lack of broader knowledge on the sector with 94% of consumers open to improving their awareness.

The report also said that rum features in five of the top 20 cocktails across the on-trade and three of the top 10 cocktails made at home (CGA Q3 2021 Mixed Drinks Report).

Campari also noted how three popular rum serves – Mojito, Daiquiri and Rum Punch – can be personalised depending on the venue they’re being served in or by the skill of the person making the drink.

In January this year, Campari Group-owned Appleton Estate released a limited edition rum to celebrate the 40th anniversary of master blender Joy Spence.

It looks like you're in Asia, would you like to be redirected to the Drinks Business Asia edition?

Yes, take me to the Asia edition No