Fortified Wine Market

Fortified Wine Market Size and Forecast (2023-2028):

The Global Fortified Wine Market size was worth USD 16.3 billion in 2022, and it is estimated to reach a valuation of USD 29.8 billion by the end of 2028, rising at a CAGR of 12.4% during the forecast period.

Market Overview:

Fortified wine is a type of wine that is prepared by adding distilled spirit, typically brandy. This process helps to raise the alcohol content and also gives a unique flavor to the wine. Some commonly prepared fortified wines are Port, Sherry, Madeira, Marsala, Commandaria wine, etc. Fortified wines are available in various levels of sweetness, from dry to sweet, and they are sweeter and more strong than regular wines. As they are aged for a long time, they develop a complex aroma and taste. Fortified wine has high alcohol content, which ensures an extended life on opening and makes them durable and tastier over time.

Recent Developments in Fortified Wine Industry:

• In June 2022, Dry Vermouth di Torino, developed to capture the essence of the "Golden Hour" and Italian Aperitivo Culture, was introduced as part of the portfolio expansion of the Italian Vermouth brand Cuceilo. With crisp aromas of fresh Sicilian citrus and slight yet herbal bitterness, the brand's Dry Vermouth di Torino has been developed to emphasize the most popular aperitif drink, the Martini.

REPORT COVERAGE:

Drivers:

One of the significant drivers of the market growth is the unique flavor of fortified wine. During the wine production process, special spirits like brandy are added to wine to give fortified wine a unique flavor as compared to regular wines. This process helps to create a wide range of tastes of sweetness. So, it offers different preferences for people, and as a result, they can pick which fortified wine suits their requirements and choice. Hence, as fortified wine provides a diverse range of flavors, it is attracting more consumer base towards it and leading to an increase in the market demand.

Another factor propelling the market demand is the longer shelf life of fortified wines. During the process of winemaking, fortified wines are produced with higher amounts of alcohol as compared to regular wines. This extra addition of alcohol acts as a natural preservative for fortified wines and keeps the wine stable and good to drink for a very long time, even after the bottle is opened. Hence, this makes fortified wines a convenient choice for people as it does not bother people to finish at once. This attribute is significantly inducing the demand for fortified wine among consumers.

Further, the growing demand for premium alcoholic beverages is boosting the fortified wine market growth. While the winemaking process, fortified wine is made by adding special spirits like brandy which provides the wine with a unique and distinctive flavor, and this attracts a significant number of consumers. Also, fortified wines come from specific regions with a rich winemaking history and traditional practices of producing them. This is capturing the attention of those seeking premium alcoholic beverages, and it is boosting the market demand globally.

Restraints:

One of the major restraints of market growth is the high cost of fortified wine. Because fortified wines, especially the ones that are of very high quality and have been aged for a long time, can be exceptionally costly as the production of these wines can include more addition of special spirits like brandy and storage expenses. Some consumers with restricted budgets and those who are price sensitive find difficulty in adopting fortified wines; they may opt for other alternative alcoholic beverages as they are available at low prices compared to fortified wines. This high-cost factor may restrict the market demand among price-sensitive consumers.

Another major restraint to the market growth is competition from other alcoholic beverages. There are various other alcoholic beverages available in the market, like beers, spirits, cocktails, etc., which are capturing the attention of consumers hence the market share. Spirits such as vodka, whisky, and rum are very much popular and provide various flavors to consumers. Also, the cocktails offer a lot of diverse tastes and flavors. With this, other alcoholic beverages are perfectly capturing the attention of consumers, and due to this competition, fortified wines are facing challenges in attracting a large consumer base. Hence, this competition from other alcoholic beverages is significantly restraining the market demand.

Opportunities:

A significant opportunity for fortified wine market growth is offered by expanding wine tourism globally. People are visiting wineries over the world and especially the regions where specific wine is famous, to get experience the rich culture and traditional processes of winemaking. They can explore big and beautiful vineyards and can learn about traditional wine production practices, and also they enable the tasting of various fortified wines. This can lead to attracting more consumers towards unique flavors and tastes of fortified wines via tourism, and further, these people can refer to these experiences and tastes to their friends and family, which can contribute to increasing the demand for fortified wines. Hence, by focusing on wine tourism, fortified wine manufacturers can attract a loyal customer base, ultimately influencing the shares of the market.

Also, the development of innovative varieties and blends of fortified wine presents several growth opportunities for the market. With the help of or by exploring different grape types, flavors, and aging techniques, the manufacturers of fortified wines are offering unique and distinct options with a range of flavors. These innovations in fortified wines can attract consumers who are constantly looking for new and exciting options. Hence, this creation of varieties and blends of fortified wine can lead to increased sales and attract a large and loyal consumer base towards fortified wine, and this can contribute to the overall growth of the market.

COVID-19 Impact on Fortified Wine Market:

The fortified wine market demand was negatively impacted by COVID-19. Fortified wines require the addition of special spirits that are extracted from grapes mainly; hence during the pandemic, there was a limited supply of this raw material as there were restrictions on transportation and logistics from one place to another. Also, due to social distancing and restrictions on gatherings, more people stopped going to bars, pubs, and restaurants, which resulted in a decline in the demand for fortified wines in this sector, which is a major contributor to the market share. Further, the shutdown of liquor shops during the lockdown majorly affected the shares of the market, as accessibility and convenience of buying fortified wines were impacted.

Fortified Wine Market Segmentation Analysis:

By Product:

• Port Wine
• Vermouth
• Sherry

By product, the Vermouth segment is ruling the market share during the projected period. Owing to the versatility and complex flavors offered by fortified wine, vermouth as it is making this segment popular among consumers who are seeking unique and refreshing drinking experiences. Vermouth is flavored with numerous herbs, spices, and roots, and it comes in sweet and dry varieties. Hence, this fortified wine is creating a great demand. At the same time, the Sherry segment is expected to grow at the fastest rate during the forecasted period. Because sherry is defined by its traditional aging process and unique production methods, which contribute to giving rich and distinctive flavors to this fortified wine, this attribute is influencing the market share.

By Distribution Channel:

• Pub, Bars & Restaurants
• Internet Retailing
• Liquor Stores
• Supermarkets

By distribution channel, the liquor stores segment is dominating the fortified wine market during the forecasted period. Because of the variety of fortified wines, including sherry, vermouth, etc., are widely available in liquor stores. Also, it is a convenient and easily accessible platform for consumers. This attribute is significantly boosting the market growth. However, the pub, bar, and restaurant segment is expected to grow at a healthy CAGR during the projected period. Because consumers demand fortified wines in social settings, and the wines such as vermouth and sherry are becoming more popular in these places as they offer distinct and unique flavors. This is boosting the demand for fortified wines in this segment.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

Europe is ruling the fortified wine market share during the anticipated period. Owing to the strong cultural presence of fortified wine in European countries like Spain, Italy, Portugal, etc. as they enjoy fortified wines as part of their traditional events and celebrations. The significant presence of various types of fortified wines, special mentions, vermouth, and sherry are attracting a large local and international consumer base. This is majorly driving the market demand in this region. However, North America is expected to grow at the fastest CAGR during the forecasted period. Owing to the increased demand for premium alcoholic beverages and unique flavors among the consumers. This is leading to a boost in the market demand in this region.

Key Players in the Market:

Major Key Players in the Global Fortified Wine Market are

• E. & J. Gallo Winery
• Constellation Brands, Inc.
• Treasury Wine Estates
• Trinchero Family Estates
• Deutsch Family Wine & Spirits
• Liberty Wines Limited
• The Wine Group
• John Distilleries
• International Beverage Holdings
• Sula Vineyards Pvt. Ltd.
• Accolade Wines, Plc.