*This article was originally released in June 2023 and updated with additional material in October 2024.

The rum category sold over 22 million cases in 2023, representing a -4.5% dip from 2022’s sales numbers. However, according to IWSR, the rum market is poised for growth in 2024 and beyond. Several factors are contributing to rum’s promising future.

Rum has benefited from premiumization, especially among younger consumers. The momentum of craft spiced rum, aged rum, and imported premium brands among younger consumers is making for a bright outlook for the segment moving forward. Several premium brands, including Brugal and Appleton, led the category in growth in 2023.

Beyond its premium offerings, rum benefits from its status as an extremely versatile spirit that can be used in a wide range of cocktails. From sugary vacation drinks to high-end luxury cocktails, rum has demonstrated utility in a multitude of settings.

As the rum market continues to evolve, we have compiled a comprehensive overview of the category for those interested in building a rum brand in the U.S.

How Big Is the Rum Market in the United States?

Rum in the U.S. is currently led by mainstay brands such as Bacardi, Captain Morgan, and Malibu. Malibu, the third largest rum producer in 2023, sold nearly 2 million 9-liter cases more than the next largest supplier, indicating that the top rum brands command a more highly concentrated attention share than leading brands in other categories.

However, these top brands all experienced a dip in sales from the previous year. The growth of rum is being pushed forward by rising brands like Appleton, Planetary, Brugal, and Ron Zacapa. Overall, rum accounted for 7.4% of total spirits consumption in the U.S. in 2023. The states that were responsible for selling the most 9L cases of rum included.

Florida – 2.7 million cases
California – 2.1 million cases
New York – 1.6 million cases
Texas – 980k cases
New Jersey – 977k cases

The states and territories responsible for selling the most rum cases per capita included:

New Hampshire – 273k cases (250 per 1,000 adults)
North Dakota – 110k cases (196 per 1,000 adults)
Alaska – 95k cases (181 per 1,000 adults)
Minnesota – 691k cases (164 per 1,000 adults)
Wisconsin – 685k cases (156 per 1,000 adults)

Join the Thousands of Alcohol Industry Members Who Receive the Park Street Daily Newsletter!

Trends Driving Rum’s Popularity

Evolving Consumer Perception

Consumer perception of the rum category has evolved in recent years. While rum sales are still dominated by major producers, consumer preferences are shifting away from value options and towards an appreciation for craft and aged rums.

Across all categories, aged spirits are a growing segment and rum is no exception. While this has been primarily facilitated by whiskey’s popularity in the U.S., introductions of aged rums in the U.S. market are also on the rise.

The growing influence of aged rums and high-quality expressions has seen consumer perceptions of rum shift. Many consumers now see rum as a premium offering that can be sipped and appreciated in much the same way as rare whiskies and tequilas.

Aged rums usually sell at a lower price point compared to other aged spirits, making them an accessible value proposition to many consumers.

Increasing Use Occasions

Rum is also a uniquely diverse category with white, dark, aged, and flavored varieties contributing to a myriad of use occasions and channel opportunities that brands can take advantage of.

Rum also plays a key role in cocktail culture. While the spirit is a staple of on-premise tiki bars, it’s also one of the only spirits for which it’s common to blend multiple varieties in the same cocktail.

According to Bacardi’s 2024 Cocktail Trends Report, four of the top 10 best-selling cocktails are rum drinks, making the spirit a must-have for all on-premise programs.

Shifts in Marketing & Branding

Rum’s perception shift is in part due to a conscious effort on behalf of producers to change how the category is marketed and branded. This landscape has opened up significantly, with brands departing from the nautical branding style that had previously been synonymous with the category.

Brands of the past few decades have taken a marketing approach based on sea-oriented themes as toted by category mainstays like Sailor Jerry, Captain Morgan, and Kraken Rum. Instead, a new wave of premium brands like Ten to One Rum, Foursquare, and Diplomático have leaned into the production techniques and history of the spirit to market their products.

As a result, younger drinkers in the 25-34 age group now account for the largest share (20.7%) of rum consumers. Brands will continue to try and educate consumers about the category and implement quality cues to build out rum’s perception as a premium spirit.