Rum in Global Travel Retail: Can Premiumization and Storytelling Drive the Next Wave of Growth?

Rum in global travel retail (GTR) stands at a turning point. As the sixth-largest spirits category in the channel, rum brings diversity, provenance, and vibrant flavor profiles to airport and cruise retail. Yet the category still trails whisky, gin, and fast-growing Tequila in perception and shelf power.

To secure long-term growth, rum in global travel retail must sharpen its positioning, strengthen storytelling, and accelerate premiumization.

Premiumization Gains Momentum for Rum in Global Travel Retail

Recent data signals progress. According to IWSR, rum outperformed gin, vodka, and agave-based spirits in 2024. Volumes rose 4% year on year and value climbed 9%, compared to total GTR spirits growth of 5% by volume and 7% by value.

Charlotte Reid, senior insights manager GTR at IWSR, told The Spirits Business:

“To unlock growth, brands will need to shift consumers beyond the traditional rum and Coke mindset by encouraging exploration across a broader repertoire and sparking curiosity through education and experience.”

Spiced rum continues to drive results, accounting for roughly 10% of GTR rum volume. Bacardi, which claims a 24.9% value share of the category, sees accelerating momentum.

A Bacardi GTR spokesperson told The Spirits Business:

“While rum has historically trailed categories such as whisky, Tequila, and gin in trading consumers up the value ladder, momentum is now accelerating, driven by interest in craftsmanship, aged expressions and elevated serves.”

The 2023 launch of Bacardí Caribbean Spiced targeted premium enthusiasts and helped fuel spiced rum’s 18.4% value surge, as reported by Bacardi.

Flavor Innovation and Provenance Drive Consumer Curiosity

Flavor exploration plays a central role in rum’s revival.

Andrew Cowan, managing director of Diageo Global Travel, told The Spirits Business:

“Flavours and spiced rums are popular as consumers explore new tastes. Rum is also unique in the sense that it is heavily linked to local provenance and craft, especially for GTR consumers looking for a reminder of their destination.”

Diageo reinforced that strategy with a redesigned Zacapa XO to “redefine luxury rum,” positioning the brand around exclusivity and experience.

Similarly, Pernod Ricard has premiumized Havana Club in GTR. Rae Gibson, director of power brands and emerging categories at Pernod Ricard GTR, told The Spirits Business:

“We restaged the Icónica Collection last year… and it has landed really well with prestige consumers.”

The company also expanded Bumbu in travel retail. Gibson added:

“Bumbu has enjoyed incredible success in Europe… Bumbu is injecting a disruptive energy into the category.”

Meanwhile, Roy Summers, head of GTR at Proximo Spirits, highlighted Kraken’s appeal:

“Kraken resonates with Gen Z and younger Millennial travellers who want bold flavour and easy cocktail-making.”

However, Summers cautioned:

“Rum still needs clear storytelling to compete with more established categories like whisky or gin.”

Shelf Space, Regional Variations, and Competitive Pressure

Shelftrak’s managing director Garry Stasiulevicuis told The Spirits Business that rum accounts for 4% of total alcohol space across 75 GTR stores analyzed in Q3. Roughly 400 unique rum SKUs compete for attention, with Bacardi (28%), Diageo (21%), and Pernod Ricard (14%) dominating.

Dark rum holds 54% of the segment, followed by spiced (18%), flavored (12%), and white (10%). Aged expressions above 12 years represent just 6%.

Regional dynamics matter. In the Americas, dark and aged rums over-index significantly. In contrast, the UK favors flavored and spiced expressions tied to holiday consumption.

At Duty Free Americas, vice-president Dov Falic told The Spirits Business:

“Rum is a key category in Latin American airports… During our recent DFA Festival, it was one of the main growth drivers.”

Cruise retail amplifies this trend. Stuart Brown, head of liquor, tobacco and confectionery at Harding+, said:

“On ships sailing the Caribbean season, guest demand for rum naturally strengthens.”

Lindsey Mitchell, buyer at Starboard Group, reinforced the point:

“Caribbean itineraries are, by far, our best-performing routes for rum.”

Yet challenges persist elsewhere. Ospree Duty Free described rum as its smallest liquor subcategory and told The Spirits Business that the category “would certainly benefit from renewed storytelling, innovation in premium and craft expressions, and stronger brand building.”

Price Sensitivity and the Mid-Tier Reality

Economic headwinds also shape performance.

Manuel Schilling, head of spirits buying at Gebr Heinemann, told The Spirits Business:

“For the first time in an extended period, year-on-year volume growth (19.2%) has significantly outpaced value growth (6.3%), suggesting a more price-sensitive consumer.”

Standard-tier products account for 74% of volume, according to IWSR. While premium-plus gains traction, rum still lacks the strong quality cues leveraged by whisky and Cognac.

Eduardo Heusi, global category director for liquor at Avolta, told The Spirits Business:

“Stronger storytelling, targeted activations, and a mix of established brands and emerging producers will be key to capturing momentum.”

What’s Next for Rum in Global Travel Retail?

IWSR forecasts a 3% CAGR (by value) for rum in global travel retail between 2024 and 2029, with premium rum slightly outperforming at 4%. Spiced rum is expected to grow at 3%.

Reid emphasized structural opportunities:

“Another potential driver is improved training on rum heritage in line with whisky and Cognac categories to encourage trading up.”

Cruise retailers expect steady performance, with Mitchell noting that tastings and engagement will unlock premium traction.

Ultimately, rum in global travel retail has proven resilient. The category has momentum in spiced and premium expressions, strong regional anchors in the Caribbean and Americas, and rising interest among younger travelers. However, to compete with heritage-rich categories like whisky and aspirational Cognac, rum must invest consistently in education, provenance messaging, and immersive retail experiences.

Growth is possible. But storytelling will decide whether rum simply holds its ground—or truly unlocks its potential.

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Source of Information

The Spirits Business Article — Can travel retail unlock rum’s potential?, written by Kevin Rozario

The image of the article is courtesy of © Joshua Woroniecki via Canva.com