|Study Period:||2016 -2027|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The Global fortified wine market is expected to register a CAGR of 5.01% during the forecast period, 2019 - 2024.
Fortified wines are blends of grapes and various vintages, and the majority of the fortified wines are similar in their classification. The actual aging of the fortified wine depends upon the fortified wine itself, and it is found that the cheaper the fortified wine lesser is the time it has taken aging in the oak.
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, and almost across the globe to control the impact of the pandemic.
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. Macro-economic factors like improved disposable income are also boosting the growth of the fortified wine market in developing countries.
The premiumization aspect of alcoholic drinks has also been significant and evident in the fortified wine industry. Companies are targeting the emerging and influential economic class of the population, owing to their higher discretionary spending on such products.
Scope of the Report
The market for fortified wine is segmented based on product type, packaging type, distribution, and geography. Based on product type, the market is further categorized into port wine, vermouth, sherry, and others. The distribution channel segment includes on-trade, supermarkets & hypermarkets, specialty stores, and others. Also, the study provides an analysis of the fortified wine market in the emerging and established markets across the world, including North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. The report offers market size and forecasts in value (USD million) for all the above segments.
|By Product Type|
|By Distribution Channel|
Key Market Trends
Increasing Demand for Premiumization Alcohol
The fortified wine market is increasingly driven by growing demand for product innovations in terms of new flavor varieties. The rapidly evolving tastes and preferences have led to the emergence of new and exotic flavors of fortified wine. In fact, after the legalization of marijuana in many states of the United States, many fortified wines are being launched infused with marijuana. Premiumization is also expected to further fuel the growth of the fortified wine market as consumer perception regarding premium fortified wines is both positive as well as promising. The premiumization associated with fortified wine is also evident in developing regions due to the emergence of the aspirational middle-class segment.
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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. The low product awareness of newly introduced and tweaked versions of fortified wines has been impeding the growth. Companies have embarked on higher brand recognition through aggressive branding campaigns and social media promotions. Fortified wine has also been considered an ideal cocktail ingredient. The bartenders have reported that port, vermouth, and sherry offer many characteristics that make them attractive for mixing.
Additionally, these wines exhibit enough natural sweetness to replace the simple syrup commonly used in cocktails. Over the past five years, Sherry fortified wines have seen a significant revival in the United States. 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 to all courses of the meal.
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The wine market is a highly competitive market due to a large number of global and domestic companies operating in various countries. The growing demand for new and unique flavors has led to intense innovation from the key players to meet the changing tastes and demands of the consumers. Some of the key players operating in the fortified wine market include Liberty Wines Limited, Backsberg, Contratto, Taylor's Port, Albina & Hanna, Vinbros, and Mazuran's Vineyards Limited, Lombardo winery, Sogevinus Fine Wines SL Kopke.
As every region has a number of domestic players with robust distribution channels, global players seeking a higher market share prefer acquiring them rather than starting fresh in the country. New product development is another strategy followed by companies, as product differentiation helps in increasing the consumer base.
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.
In 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.
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 By Product Type
5.1.1 Port wine
5.2 By Distribution Channel
126.96.36.199 Liquor Stores
5.3.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.3.4 South America
126.96.36.199 Rest of South America
5.3.5 Middle-East and Africa
188.8.131.52 United Arab Emirates
184.108.40.206 South Africa
220.127.116.11 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Liberty Wines Limited
6.4.3 Sogevinus Fine Wines SL (Kopke)
6.4.4 Taylor's Port
6.4.5 Albina & Hanna
6.4.8 Mazuran's Vineyards Limited
6.4.9 Lombardo winery
6.4.10 Sogevinus Fine Wines SL Kopke
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Fortified Wine Market market is studied from 2016 - 2027.
What is the growth rate of Fortified Wine Market?
The Fortified Wine Market is growing at a CAGR of 5.01% over the next 5 years.
Which region has highest growth rate in Fortified Wine Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Fortified Wine Market?
North America holds highest share in 2021.
Who are the key players in Fortified Wine Market?
Liberty Wines Limited, Backsberg, Sogevinus Fine Wines SL (Kopke), Taylor's Port, Albina & Hanna are the major companies operating in Fortified Wine Market.