Fortified Wine Market Size
|Study Period||2018 - 2028|
|Base Year For Estimation||2022|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
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Fortified Wine Market Analysis
The global fortified wine market is expected to register a CAGR of 5.01% over the next five years.
- The fortified wine market is especially driven by the growing trend of alcohol consumption in developing countries. The growth of the fortified wine market is also affected by seasonal variations, owing to the production of grapes. Consequently, the prices of grapes also affect the prices of fortified wines. Many countries in the world produce fine wines of premium quality and fortification.
- According to the International Organisation of Vine and Wine data 2021, Italy produced about 50.2 million hectoliters of wine in 2021. Government regulations and rules can also play a significant role in supporting the growth of the fortified wine market. For example, some countries may have policies that encourage the production and sale of fortified wines or provide incentives for winemakers to experiment with new techniques and flavors.
- In recent years, the legalization of cannabis in North American states has led some market players to infuse it into wine, creating a new type of fortified wine that is higher in alcohol and has a unique flavor. This has attracted younger consumers in the region who are interested in trying new and innovative alcoholic beverages.
- Premiumization is a key factor driving the demand for fortified wine. With the rise in disposable income and a growing working population, consumers are increasingly opting for premium fortified wines over local brands. This trend is expected to continue in the coming years, especially in developing countries. In addition, young consumers are also driving demand for fortified wines with different flavors and alcohol types, as they are attracted to the variety and unique taste. This has led to innovations in the market, with wine producers creating new products that combine different types of wines, flavors, and alcohol to cater to consumer preferences.
- For instance, in January 2022, Maison Mirabeau launched its first vermouth in the United Kingdom, Rose Vermouth. Rosé Vermouth is described as an 'aromatic' apéritif that celebrates botanicals from the south of France. The 17% ABV expression was made using the surplus stock of Mirabeau's 2019 Vintage Prét-à-Porter cans of rosé
- Over the medium term, demand for fortified wines is expected to increase owing to the increased consumption of alcoholic beverages at parties and other casual occasions, and product innovations.
Fortified Wine Market Trends
Increasing Demand for Premiumization Alcohol
- The fortified wine market is being driven by growing demand for product innovations, including new flavor varieties. As consumer tastes and preferences evolve, wine producers are introducing new and exotic flavors of fortified wine to cater to these changing demands. This trend is expected to continue as producers seek to differentiate their products and capture new market share.
- Regarding the legalization of marijuana in some states of the United States, there has been a trend of some market players infusing fortified wine with marijuana to create a new type of product. Premiumization is expected further to fuel the growth of the fortified wine market. Consumers' perceptions of premium fortified wines are generally positive, as they are often associated with higher quality, unique flavors, and a more sophisticated drinking experience. As a result, many consumers are willing to pay a premium price for these products, which has contributed to the market's growth.
- Additionally, the consumption of wine and other alcoholic beverages is increased in casual gatherings, parties, and celebrations, so the demand for different types of wines is increasing among consumers. In April 2021, Bacardi India launched Martini Fiero, a contemporary vermouth that contains the taste of Martini white wine with the addition of flavors like citrus, bittersweet orange, and wormwood.
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North America Holds the Largest Share
- Fortified wines are some of the fastest-growing varieties of alcoholic beverages in the United States market, as they offer customers additional unique options and choices. The emergence of single-spirit bars has also prompted the growth of fortified wines in the country. The popularity of antique fortified wines, such as sherry and port, is particularly evident in such bars. Companies have embarked on higher brand recognition through aggressive branding campaigns and social media promotions.
- Fortified wines are often used in cocktails due to their unique flavors and higher alcohol content. They can add depth and complexity to a cocktail, as well as sweetness and body. Some popular fortified wines used in cocktails include vermouth, sherry, and port. In addition, fortified wines are also being used more frequently in the food service industry. Chefs and mixologists are discovering new and creative ways to incorporate fortified wines into their dishes and drinks, using them to add flavor and balance to a wide range of dishes and cocktails.
- As a result, market players are taking note of the growing consumer demand for fortified wines and are launching new products to meet this demand. This trend is expected to continue as consumers become more interested in unique and sophisticated flavor profiles and as the food service industry continues to experiment with new ways to incorporate fortified wines into their menus.
- For instance, in September 2022, Glenfiddich launched Glenfiddich 12-Year-Old Sherry Cask Finish, a vibrant single malt matured in traditional American and European Oak casks before finishing in rare Amontillado Sherry casks for a distinctively rich and refined taste.
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Fortified Wine Industry Overview
The wine market is highly competitive due to many global and domestic companies operating in various countries. Innovation and new product development are crucial strategies for fortified wine market players to stay competitive and meet the evolving demands of consumers. Some of the key players operating in the fortified wine market include Liberty Wines Limited, Backsberg, Taylor's Port, Grupo Sogevinus Fine Wines, and Vinbros & Company.
Mergers and acquisitions are also common in the fortified wine market, as companies seek to expand their product portfolios and increase their market share. By acquiring other companies or brands, companies can gain access to new distribution channels and markets and leverage the acquired company's expertise and resources. Overall, the fortified wine market is highly competitive and dynamic, with companies constantly seeking to innovate and differentiate their products to meet consumers' changing tastes and demands.
Fortified Wine Market Leaders
Liberty Wines Limited
Grupo Sogevinus Fine Wines
Vinbros & Company
*Disclaimer: Major Players sorted in no particular order
Fortified Wine Market News
- June 2022: The Italian Vermouth brand Cuceilo expanded its portfolio with the launch of Dry Vermouth di Torino, crafted to capture the essence of 'Golden Hour' and Italian Aperitivo Culture. With crisp notes of fresh Sicilian citrus, complemented by a light yet herbal bitterness, the brand's Dry Vermouth di Torino has been designed to highlight the most iconic of aperitif cocktails, the Martini.
- April 2021: Constellation Brands launched a dedicated business unit for fine wine and craft spirits. The new fine wine and craft spirits include High West Whisky, Casa Noble Tequila, Mi Campo, Copper & Kings, Nelson's Green Brier Distillery, and the Real McCoy.
- January 2021: E&J Gallo Winery completed the acquisition of five wineries and more than 30 wine brands from Constellation Brands Inc. The acquired brands include Arbor Mist, Black Box, Clos du Bois, Estancia, Franciscan, Hogue, Manischewitz, Mark West, Ravenswood, Taylor, Vendange, and Wild Horse.
Fortified Wine Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Port wine
5.1.4 Other Product Types
5.2 Distribution Channel
220.127.116.11 Liquor Stores
18.104.22.168 Other Supermarkets/Hypermarkets
5.3.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 Rest of Asia-Pacific
5.3.4 South America
18.104.22.168 Rest of South America
5.3.5 Middle-East and Africa
22.214.171.124 United Arab Emirates
126.96.36.199 South Africa
188.8.131.52 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Liberty Wines Limited
6.3.3 Taylor's Port
6.3.4 Albina & Hanna
6.3.6 Vinbros & Company
6.3.7 Mazuran's Vineyards Limited
6.3.8 Vitivinicola Lombardo VAT
6.3.9 Grupo Sogevinus Fine Wines
6.3.10 Cuceilo Vermouth De Torino Italia
6.3.11 Constellation Brands Inc
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Fortified Wine Market Research FAQs
What is the current Fortified Wine Market size?
The Fortified Wine Market is projected to register a CAGR of 5.01% during the forecast period (2023-2028).
Who are the key players in Fortified Wine Market?
Liberty Wines Limited, Backsberg, Taylor's Port, Grupo Sogevinus Fine Wines and Vinbros & Company are the major companies operating in the Fortified Wine Market.
Which is the fastest growing region in Fortified Wine Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Fortified Wine Market?
In 2023, the North America accounts for the largest market share in the Fortified Wine Market.
Fortified Wine Industry Report
Statistics for the 2023 Fortified Wine market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Fortified Wine analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.