Rum, long esteemed as the spirit synonymous with fun, tropical escapes, and vibrant cocktails, faces unsettling declines in its popularity across the United States. Despite once enjoying significant market presence, rum has seen its share of sales plummet over the past year, raising questions about its future viability in bars and restaurants.
According to CGA by NIQ, rum now accounts for only 9% of all dollars spent on spirits within on-premise venues, making it the fifth largest spirits category—behind whiskey, tequila, vodka, and cordials. The last 52 weeks have been particularly cruel, with volumes down as much as 10% compared to the previous year. Even more concerning is the trend seen across the various types of rum: golden rum is down 11%, dark down 10%, and white down 9%.
Before jumping to conclusions about the future of rum, the picture grows more complex when we look closer at the dynamics within the category. While the decline is evident, it has not deterred some segments of the rum market from thriving. The leading three brands dominate the space, controlling approximately 59% of sales. Hence, there's speculation about the potential for more premium and ultra-premium products to start making significant impressions. After all, these higher-end offerings have been proving to be more resilient against the decline affecting mainstream options.
This notion echoes sentiments from the tequila industry. Over the past several years, tequila has seen remarkable sales growth, buoyed by heightened education around the spirit and the emergence of premium brands. The case is drawn by the significant leaps tequila has made thanks to cocktails such as margaritas. Rum advocates are now pondering: could they seize the moment for rum with the potential rise of the mojito? The mojito has been touted as the 'cocktail of 2025', projecting optimism for rum's appeal.
Industry experts assert the relevance of bartenders, as over one-third of global consumers admit their drink choices are heavily influenced by these key players. This means strong support from bar staff could potentially reinvigorate consumer interest and shift trends within rum. Alongside the mojito, juicy cocktails like dark & stormy and mai tais could light the spark within the rum section of cocktail menus.
Additional research conducted by CGA shows interesting location-based opportunities for rum. Florida accounts for the highest share of spirits sales at 13%, but surprisingly, states like Oregon and Texas are also witnessing rum stealing market share from other beverage options—this suggests developing markets may provide unique chances for targeted marketing efforts.
New trends indicate younger consumers driving rum sales are increasingly seeking experiential purchases as part of their drinking habits. The concept of group servings could be pivotal. With two out of five rum drinkers indicating they would be more likely to purchase when served this way, bars might need to embrace this group-centric approach.
Despite facing notable challenges, the rum category still has much to offer. Brand owners and operators are encouraged to infuse some fun back to rum, as education surrounding the variety of rum options is key to attracting innovative drinkers. Some industry voices remain hopeful, stating, “There is still a lot to shout about for the rum category.” The cocktail culture's renewal promises to contribute to potential sales growth, assuming bartenders take the helm and inspire curiosity among patrons once more.
For the rum category to thrive, it must adapt and play to its strengths within mixing, learning from the effective strategies adopted by tequila. By focusing on education, engaging customers through new cocktail experiences and innovative serving methods, rum can continue to maintain its rightful place within beverage menus. The key lies not only within specialty cocktails but also within the spirit's rich history and the experiences it can evoke—an enticing proposition for both new and seasoned consumers alike.