Vermouth Market

Vermouth Market Growth and Forecast (2023-2028):

Vermouth Market size was worth US$ 11.9 billion in 2023, and it is predicted to reach a valuation of US$ 16.8 billion in 2028 with a CAGR of 5.8%.

Vermouth Market Overview:

Vermouth is an enriched white wine flavored with spices, roots, flowers, seeds and bark. Vermouth wines have a sweet taste and are the same as Martini and Cinzano. The manufacture of the product includes a reinforced base and herbal infusion. Vermouth wines are sweet aperitif wines, such as Sweet Cinzano or Martini. It is served with appetizing energy at 7-10 degrees Celsius before dinner. Vermouth contains 17 to 19% alcohol and 7 to 9% sugar. The elaboration of vermouth involves the elaboration of a suitable enriched base wine and the injection of spices. There are expanding the market size by continually expanding the generalization of fragrance-added mixed drinks with low liquor and low flavor. Vermouth is a type of wine enriched with a variety of plants such as bark, roots, seeds, herbs, flowers, and spices. It is usually consumed mainly before meals. Vermouth base wine is fortified with Mystelle. Mistelle is a mixture of unfermented grape juice and brandy in a ratio of one serving of brandy to four servings of grape juice.

Vermouth Market Growth:

The dramatic increase in promotional activity is one of the key things that will support the growth of Vermouth's industry in the years to come.

Recent Developments in Vermouth Industry:

• In July 2019, El Bandarra, a brand famous for artisan vermouth, launched a new product in Barcelona, Spain, under the brand 'El Bandarra Vermut Rosé'.

REPORT COVERAGE:

Vermouth Market Drivers:

The growing demand for low-alcohol beverages among millennials and adults in pubs and restaurants is expected to be a key factor in the growth of the market.

The demand for new and exotic wines is constantly increasing and taste preferences rapidly change accordingly. For this reason, the main wine producers on the market are offering wines of various flavors to meet the needs of their customers. Additionally, the growing popularity of fortified and flavored wines among millennials around the world is expected to be a major market driver during the forecast period. Demand for these fortified alcoholic beverages is driven by a variety of consumption trends, including changing consumer preferences for traditional alcoholic beverages and improving economic indicators such as rising living standards and changes in lifestyle. The market is experiencing a great demand for Vermouth due to the constant increase in the income of the population, which is changing the way of life. These lifestyle changes are driving the growth of the Vermouth market. Rapidly evolving tastes and preferences have led to the emergence of exotic new flavors of Vermouth. Vermouth's market is strengthening due to growing demand for dry vermouth with a low sugar syrup content. Vermouth has a 75.0% wine content and is based on a variety of plants, including alcohol and roots, bark, herbs, flowers, spices, seeds, etc. to add aroma. These varieties of fortified wine are generally consumed before dinner throughout the world. In recent years, consumers have opted for alcoholic beverages such as cocktails of a wide variety rather than traditional alcoholic beverages such as gin and brandy. These cocktails are also popular with consumers before meals and are widely consumed in restaurants and hotels. These consumer trends are expected to promote the Vermouth range for years to come. Various traditional liquors, such as gin, are expected to face fierce competition as consumers prefer Vermouth over other beverages.

Spaniards consume wine every day to stimulate their appetite and aid in good digestion. Favorable trends in these consumer countries are determined to witness high market growth over the forecast period. Additionally, changes in customer taste and profitable demand for exotic product flavors will drive market demand. However, imposing high taxes on their products, along with strict laws governing the use of their products, hinders business growth. Additionally, the easy availability of product substitutes, coupled with the large intake of craft beer, will further hamper Vermouth's industry growth range. The growing demand for new fortified wine flavors is another growth engine for the global Vermouth market. Market players are creating new flavors for fortified wines to meet the changing needs of customers. Consumers' taste preferences are changing rapidly and there is a great demand for new and exotic flavors of fortified wines. Increased marketing and promotional activities, one of the key factors driving the growth of the market. In addition to this, increased demand for new flavors of improved wines based on consumer requirements, tastes and preferences will create a lucrative roadmap for the Vermouth market in the near future.

Vermouth Market Restraints:

Huge tariffs and strict regulations set by government agencies on confiscated wines have the potential to slow market growth. Additionally, some customers prefer alcoholic beverages and craft beers over wine, which is also one of the main limiting factors.

Vermouth Market Segmentation Analysis:

By type, the Vermouth market is divided into dry and sweet markets. The sweet segment dominated the market in 2019. Sweet vermouth, also known as red vermouth, is much sweeter than dry vermouth and typically contains 10-15% sugar. The dry segment is expected to register a high growth rate of 7.4% during the forecast period 2022 - 2027. Due to the low content of sugar syrup in this region, there is a growing demand for dry and additional dry vermouth.

On the basis of distribution channels, the Vermouth market is Segmented into direct and indirect. Indirect distribution channels are further subdivided into specialty stores, online retail stores, supermarkets and hypermarkets. Direct distribution channels occupy a larger market share in 2020. Major manufacturers have begun developing businesses in commerce with a focus on Vermouth. Additionally, as the nightlife trend of millennials and younger generations increases, the demand for Vermouth increases through in-trade distribution channels.

In terms of packaging, the industry can be divided into plastic bottles and glass bottles. Of these segments, the glass bottle packaging segment is expected to make a significant contribution to overall market growth during the analysis schedule.

Based on the end-use industry, the market is segmented into HoReCa, food industry, and beverage industry. Among end-use industry segments, the beverage end-use industry segment is likely to dominate overall market growth for the expected time.

Vermouth Market Regional Analysis:

• North America

• Europe

• The Asia Pacific

• Latin America

• The Middle East and Africa

Vermouth Market Regional Analysis:

Europe was Vermouth's largest market, with a share of more than 50% in 2020 due to significant consumption throughout the region. This product was first consumed in Italy and now France, Spain, and Italy are the largest Vermouth consumers in the world. Continental Europe is expected to make a significant contribution to the overall market size during the review period due to the large consumption of products in the region, coupled with large product exports to the continental United States.

Additionally, the Asia Pacific industry will see tremendous growth in the coming years, driven by consumer lifestyle changes, social media influences, and lounge and club entertainment trends accelerating sales of alcohol. Furthermore, the rapid urbanization and expansion of the middle-class population with increasing disposable income will further promote industrial growth in the Asia Pacific region. North America vermouth market is projected to grow faster, with an average annual growth rate of 8.2% from 2022 - 2027, as demand for dry vermouth with less sugar syrup increases. Additionally, fortified wines are gaining popularity among local consumers, mainly before meals.

Vermouth Market Key Players:

1. Anchor Distilling Company

2. Atsby Vermouth

3. Fratelli Branca Distillerie Srl (Carpano)

4. Uncouth Vermouth

5. Belsazar

6. Giulio Cocchi Spumanti Srl

7. Cinzano

8. F.LLI Gancia & C. SpA-Canelli (Asti - Italy)

9. Contratto

10. La Quintinye Vermouth Royal

11. Imbue

12. Lo-Fi Aperitifs

13. Martinez Lacuesta