Global Fortified Wine Market - 2022-2029
The global fortified wine market valued USD xx million in 2021 and is forecast to reach USD xx million by 2029, growing at a CAGR of xx% during the forecast period (2022-2029).
Fortified wine, also called a dessert wine, has a higher alcohol content than other wines, with additional alcohol added to the base wine during the process of fermentation to bring the average alcohol content up to around seventeen to eighteen percent. Fortified wine boasts a distinctive flavor and aroma apart from traditional varieties. Traditional fortified wines are associated with the areas where climate and soil conditions do not favor the production of grapes suitable for high-quality light wine. The practice of adding alcohol derived from grapes should be wholly or partly fermented by the action of yeasts to produce beverages of different character styles and alcoholic strength. The growing trend of alcohol consumption in various parts of the globe is further boosting the market growth of the fortified wine market during the forecast period.
The growing trend of premium alcohol consumption boosts the market growth
The fortified wine market is primarily driven by the growing trend of alcohol consumption in developing countries. The rapidly evolving tastes and demand for growing product innovations in new flavor varieties and premium quality wines have led to new and exotic flavors of fortified wine. Along with this, the changes in the lifestyle of people, increase in personal disposable income, consumer awareness, product diversity, and high unique selling proposition also activates the growth of the global fortified wine market. This demand is supported by the expanding distribution channels and growing popularity of online retailing. The other factors like escalating country production activities further drive the fortified wine industry's growth. For instance, as to USDA Foreign Agricultural Service, India is booming in the wine production process; in 2019, produced wine was 17.6 million liters, which is increased over 2018 by 5%.
However, strict government regulations for alcohol consumption, a rise in taxes, climatic changes, and the availability of cheap substitutes restrict the growth of fortified wine globally. High consumption of fortified wine leads to various health risks such as heart and liver diseases and a certain form of cancer. In addition, several activists and organizations are spreading awareness through advertising and campaign about the adverse effects of alcohol consumption, which can hamper the demand for fortified wines globally.
The vermouth segment held the highest market revenue share of xx% in the year 2021
Based on type, the vermouth segment accounted for the largest market share in the global fortified wine market. The increasing use of vermouth wine as an antiseptic and medicinal drug to treat cold and viral diseases is expected to drive market growth. Vermouth contains 75.0% of wine content, a base infused with alcohol and various botanicals, including herbs, roots, spices, flowers, barks, and seeds. These fortified wine variants are commonly consumed as aperitif across the globe. Over the last few years, consumers have shifted towards alcoholic beverages such as various cocktails over traditional alcohol beverages, including gin and brandy. According to Food and Drink Report 2019, one in every five people in the U.K. owned a cocktail shaker. These cocktails are widely consumed in restaurants and hotels. These consumer trends are projected to promote the scope of vermouth over the next upcoming years. Moreover, vermouth wine is also used as a substitute for white wine in food recipes because it is more flavorful than wine. It may be overwhelming when used in certain dishes. The herbs in dry vermouth make it an attractive ingredient in sauces for fish dishes or a marinade for other meats, including pork and chicken. These factors of vermouth wine are driven the market growth.
Based on nature, the dry wines are expected to have the largest market share. Dry wines are consumed easily by diabetic people due to the absence of sugar in them. For instance, The British Diabetic Association suggests dry wines are a better bet in low carbs than other alcohol. These factors influenced the segment growth.
Europe is dominating the global fortified wine market in the year 2021
Europe is dominating the global fortified wine market in 2021, owing to substantial consumption across the region. In Europe, the fortified wine market is a traditional and age-old market and is already in the maturity phase. As per the International Organisation of Vine and Wine, it was estimated European Union produced of wine 159 million hectoliters in 2020. On the other hand, North America is expected to be the fastest-growing region in fortified wine during the forecast period. In North America, fortified wine is consumed mostly as an end-of-meal drink on special occasions. Raising awareness about the product is likely to boost the growth of the fortified wine market in this region. Sherry fortified wines have seen a significant revival in the United States over the past five years. The demand for Portugal’s authentic style of fortified wines is particularly evident. The other categories, such as Madeira, have also witnessed decent growth in the US market. The food service channels, such as restaurants and hotels, are increasingly finding enticing ways to add Madeira with all courses of the meal.
Some industry players operating in the fortified wine market are Bacardi Limited, E & J Gallo Winery, Constellation Brands, Inc, Treasury Wine Estates, Trinchero Family Estates, Campari Group, The Wine Group, Precept Wine, LLC, Chateau Ste. Michelle Winery, and Vinbros and Co., among others. The growing demand for new and unique flavors has shown intense innovation from the key players to meet consumers' changing tastes and demands. For instance, In January 2021, E&J Gallo, a California wine brand, announced that it had sold its two key fortified wine brands to Precept Wine, a Seattle-based company. The company had sold its Fairbanks and Sheffield Cellars fortified wine brands to Precept. This development is expected to enhance Precept’s rising wine portfolio and expand its overall footprint, in the near period. In April 2021, Anheuser-Busch InBev, one of the biggest players in the market, had announced that it would produce and distribute products for the major firm, The Wine Group, in the United States. Under this novel agreement, the former would produce MD/20/20 Spiked punch, the Wine Group’s fortified wine brand. The company would package and distribute the brand.
Negative impact on the global fortified wine market
The COVID-19 outbreak has impacted the fortified wine market negatively. COVID-19 made a major impact on the wine industry due to the forced closure of on-trade wineries in various countries such as the United States, the United Kingdom, India, almost across the globe to control the impact of the pandemic. Most of the bars, restaurants, liquor stores, and pubs in almost all the countries have been closed, disrupting the sales volume and frequency of the wine. Alcohol products are not on the list of the essential items made by the government amid the corona pandemic, which has had a huge impact on the sales of alcohol.
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PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study
Excel data sheet with valuable data points of the global fortified wine market – Regional and Country level segmentation
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Market share analysis covering business revenues ($) and revenue share (%) of key market players
The global fortified wine market report would provide an access to approximately 61 market data tables, 58 figures, and 180 pages
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