Published August 2024 | Average reading time: 2-3 minutes

The Rum and Cachaca market is projected to double its size by 2031, according to research

The global Rum and Cachaça market is on a promising trajectory, poised for significant growth in the coming decade. Recent research indicates that the Rum and Cachaça market, which was valued at USD 29,180.96 million in 2021, is expected to reach USD 57,603.42 million by 2031. This substantial increase represents a compound annual growth rate (CAGR) of 7.04% during the forecast period. The expansion of the Rum and Cachaça market is driven by several factors, including elevated consumer expenditure, the burgeoning e-commerce sector, and innovative market initiatives.

Increased consumer expenditure to boost market share

The rise in disposable income and changing consumer spending patterns are pivotal in propelling the Rum and Cachaça market forward. With more consumers willing to spend on premium and extra-premium alcoholic beverages, there is a noticeable shift towards premium Rum and Cachaça. This trend is further amplified by the growing popularity of aged Cachaça, whose flavour appeals to discerning palates.

The growth of the e-commerce segment

The e-commerce sector has emerged as a channel for the distribution of Rum and Cachaça. The convenience of online shopping and the availability of a wide range of products have made it easier for consumers to explore and purchase spirits. Furthermore, the increase in disposable income in this region has led to higher demand for premium and exotic alcoholic beverages, including Cachaça. This digital transformation is particularly significant in North America, where the Rum market is projected to experience the fastest growth globally.

More activities to increase market magnification for Rum

According to the same research, a notable trend within the Rum and Cachaça market is the enhancement of initiatives aimed at market magnification. This includes the introduction of Rum and Cachaça in various products beyond traditional beverages. For instance, Rum is increasingly being used in culinary applications, cosmetics, and even as a flavouring agent in gourmet foods. These innovative uses are aiding the diversification of markets that Rum are involved in beyond the drinks industry.

The cultural and economic significance of Cachaça in Brazil 

Cachaça, commonly known as Brazilian Rum, is integral to Brazil's culture and history. This distilled spirit is woven into Brazilian traditions and is honoured annually on International Cachaça Day. 

The Brazilian government also actively promotes Cachaça both domestically and internationally. São Paulo and Minas Gerais are particularly renowned for their Cachaça production, with numerous small-scale producers contributing to the diversity of the market.

The role of Cachaça in the Caipirinha cocktail

One of the most famous cocktails featuring Cachaça is the Caipirinha, Brazil's national drink. This cocktail, made with Cachaça, fresh sugarcane juice, sugar, and lime, has gained international acclaim and is a staple in bars worldwide. The Caipirinha cocktail showcases the versatility of Cachaça and also highlights the uniqueness of distillates made from fresh sugarcane juice. The positive reception of Caipirinha worldwide has also boosted the sales and growth of Cachaça.

Rum and Cachaça: A comparison

While both Rum and Cachaça are made from sugarcane, there are distinct differences between the two spirits. Rum, which can be made from either sugarcane juice or molasses (a byproduct of sugar production), is produced in various regions, including the Caribbean and Latin America. Cachaça, on the other hand, is exclusively produced in Brazil from fermented fresh cane juice. This unique production process gives Cachaça its characteristic flavour, though the flavour reception largely depends on the application, the ageing process and the drinker’s palette, among other aspects.

Are you interested in purchasing Cachaça?

At E&A Scheer, we specialise in Rum, Cachaça, and Batavia Arrack. Whether you are looking to create a signature cocktail for your bar, develop a new culinary product, or enhance your brand with a unique flavour, we can assist you. Our vast industry expertise, dedicated resources, and long-term perspective are here to support you in building a future-proof industry presence and driving sustainable success.

As an independent company, E&A Scheer offers access to an unrivalled selection of Rum varieties from over 40 distilleries and origins worldwide, including Fairtrade-certified and Bonsucro Rum. Thanks to enduring partnerships with suppliers worldwide, the company has gained substantial knowledge of countless Rum distilleries, types, and styles. Contact us today to learn more about how we can support your business with our Rum and Cachaça offerings.

Contact E&A Scheer

Frequently asked questions

What kind of alcohol is Cachaça?

Cachaça is a distilled spirit made from fresh sugarcane juice. It is similar to Rum but has a distinct production process and flavour profile that sets it apart. Cachaça is often enjoyed in cocktails like the Caipirinha.

Is Cachaça only made in Brazil?

Yes, Cachaça is exclusively produced in Brazil, as it is a Geographic Indication. It is considered Brazil's national spirit. The Brazilian government regulates its production to ensure quality and authenticity.

What are other drinks that are similar to Cachaça?

Drinks similar to Cachaça include Rum and Rhum Agricole. Rhum Agricole, like Cachaça, is made from fresh sugarcane juice and shares a similar production process. However, it is exclusively produced in French-speaking Caribbean islands such as Martinique and Guadeloupe.