Market Size of Fortified Wine Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.01 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*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.
