2022-2028 is the forecast period in the market report
A fortified wine is a viscous wine-based treat often enjoyed before or after dinner. The most common types of fortified wines are madeira, marsala, port, sherry and vermouth. These still wines have been fortified with a distilled alcohol such as brandy. The original purpose of fortification was to preserve wine, as wine barrels tended to turn to vinegar on long sea voyages. Added alcohol can also enhance the natural flavors of wine. The liquor is added to the base wine during fermentation. Rising demand for alcoholic beverages such as fortified wine during various social events is the major driver of market growth across the globe. Market players are launching innovative fortified wine flavors to respond to changing consumer preferences and reach a wider customer base and this factor is anticipated to provide ample new growth opportunities for the market in the upcoming years.
The fortified wine market is particularly driven by the growing trend of alcohol consumption in developing countries. The growth of the fortified wine market is also affected by seasonal variations due to grape production. Therefore, grape prices also affect fortified wine prices. Also, factors such as improved disposable income are driving the growth of the market in developing countries. European culture sees wine as an integral part, and this culture transcends global borders and enters the geography of Asian countries. The growth of the young population in these localities includes the inclusion of wine their diet and as part of the occasional drink. The consumption of the product is seen as a social recognition, which in turn will drive the growth of the industry over the forecast period. Additionally, various health benefits are associated with the consumption of fortified wine. These are expected to be the major growth drivers for the market. On the other side, rapid urbanization in developing countries along with changes in consumer preferences are expected to stimulate the growth of the market during the estimated time period.
The increasing investment in R&D activities by various manufacturers to produce innovative wine products across the world is anticipated to create new opportunities for the market in the coming years. Besides, emerging economies across the Asia Pacific region like Japan, India, China, Singapore etc. are proving to be profitable avenues for the food and beverage industry and this factor is expected to provide rising new growth opportunities for the market over the forecast period.
Government policies in countries like the United States, Germany, United Kingdom, China, and India are expected to maintain the quality of fortified wine products. Recently, the Food Safety and Standards Authority of India (FSSAI) formulated and notified the Alcoholic Beverage Standards Regulations 2018 for the manufacture and labeling of wine. The regulatory restrictions in these nations are expected to acts as a hurdler for the market’s growth over the forecast period. Besides, tax regulations and policies are another factor that may restrain market growth over the forecast period.
The COVID-19 pandemic has hampered the growth of the market to a significant extent, which has created major challenges for the market’s growth. Also, lack of essential raw materials and logistical issues are expected to be key factors that impact market growth over the forecast period.
The report provides an in-depth analysis of global Fortified Wine market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. With increasing demand for fortified wine in various applications has led the increasing demand for market and is expected to witness the growth at a specific CAGR from 2021-2028.
The global Fortified Wine market comprises of different market segments like type, sweetness, distribution channel and geography.
By type, the Fortified Wine market includes the key segments of
The vermouth segment is expected to dominate the market over the forecast period. Vermouth is probably best known as the ‘other’ ingredient in a martini, but it's great to drink as an aperitif (an alcoholic drink taken before a meal to stimulate the appetite). It is usually available dry or sweet. Vermouth is produced all over the world and varies in taste and quality depending on the manufacturer. The increasing use of vermouth as an antiseptic and medicine to treat colds and viral illnesses is expected to drive market growth.
On the other side, the sherry segment is expected to witness significant growth over the forecast period. Sherry is a well-known fortified wine made in south-western Spain. It comes in fino (dry and light) and oloroso (dry but richer) styles. The growing popularity of sherry wine among Western consumers as a dinner drink to warm the body has led to the popularity of sherry and several health benefits of sherry wine, such as preserving cholesterol and antioxidants, avoiding hypothermia, and many others, are expected to support the growth of this segment over the forecast period.
By sweetness, the Fortified Wine market includes the following segments
The semi-sweet followed by sweet segment are expected to grow at a high rate over the estimated time period. Sweet and dry fortified wines are both produced according to the same principles: the wine is fermented, and then distilled spirit is added to the wine. However, winemakers have learned that they can control how sweet or dry their fortified wine is by adding spirits at different times. If winemakers add alcohol to wine before it has fermented, they produce a sweet fortified wine. For a drier fortified wine, the spirit should be added after fermentation is complete. The process for making semi-sweet or sweet fortified wine is less complicated, and therefore more preferred by the manufacturers.
The Fortified Wine market has distribution channels like
The liquor stores segment is anticipated to lead the market over the forecast period. The increasing number of liquor stores around the world is driving the market. Moreover, the easy access to various products in the stores is expected to boost the growth of the segment.
Similarly, the online distribution channel is likely to have rising demand in the market over the estimated time period. Growing consumer acceptance of the e-commerce industry due to internet penetration has seen lucrative growth in recent years. Several manufacturers are offering alcoholic products on their websites and e-commerce platforms, which is expected to drive demand from consumers.
The global Fortified Wine market is studied for the following regions
Europe is expected to dominate the market over the forecast period. The dominance of the region is due to the high consumption of wine in countries like Germany, France, Italy, Spain and Portugal. Moreover, growing demand for fortified wine is predicted to boost market growth over the forecast period.
The Asia Pacific region is expected to grow at the fastest rate over the forecast period. Growing awareness of the health benefits of drinking fortified wine and an increase in disposable income in Asian countries are key factors expected to stimulate market growth. Also, the presence of developed economies like China, India and Japan are further contributing healthy growth in the market.
Axiom MRC provides an exclusive 360 degree analysis of micro and macro-economic factors on the global Fortified Wine market. With a complete analysis of changes in the global Fortified Wine market expenditure, economic and international policies affecting the supply and demand side. The report also studies the impact of the pandemic on global economies, international trade, business investments, GDP and marketing strategies of key players present in the market. The COVID-19 outbreak has had negative consequences for the wine market around the world. The lockdown situation has closed all sectors affecting production. All bars, restaurants, pubs, liquor stores in almost all countries are closed, disrupting the volume of sales and the frequency of wine. The closure announced during the COVID-19 pandemic caused transportation to be disrupted and supplies of raw materials suspended for a period of time, impacting the production of fortified wine. However, with the growing health awareness and promotion of the use of fortified wine following the COVID-19 pandemic, the market is expected to witness healthy growth in the coming years.
The competitive landscape analysis of Fortified Wine market is primarily focused on expanding the global growth of Fortified Wine through new product innovation, business expansion, increasing presence of a range of manufacturers operating in the fortified wine sector, which has led to growing demand for the market. Besides, the market offers a range of products in different applications to fulfill the required demand of consumers, which is further contributing to healthy growth in the market.
The key players studied in market are
June 2021: E. & J. Gallo Winery had announced that the company would build a new production facility and distribution center with USD 423 billion investment to support its long-term innovation plans and future business growth.
September 2020: Riboli Family Wines had announced the launch of Highlands 41, its newest estate-based brand within the Riboli Estates Group division.
By type, the Fortified Wine market includes the key segments of port, sherry, vermouth, Madeira, marsala and others. The vermouth segment is expected to dominate the market over the forecast period. Based on sweetness, the Fortified Wine market is segmented into semi-sweet, dry and sweet. The semi-sweet followed by sweet segment are expected to grow at a high rate over the estimated time period. The Fortified Wine market has distribution channels like liquor stores, supermarkets and hypermarkets, specialty stores and others. The liquor stores segment is anticipated to lead the market over the forecast period. The global Fortified Wine market is studied for the following region North America, Europe, Asia-Pacific and Rest of the world (RoW). The Europe region is expected to dominate the market over the forecast period due to a high demand for fortified wine in the region.
|Market Sizing for Year:||2019-2029|
|Market Segment studied:|
|Market Players and its Competitors:|
The Wine Group
Davide Campari-Milano S.p.A
Anchor Brewing Company
Constellation Brands, Inc.
Treasury Wine Estates
Trinchero Family Estates
E. & J. Gallo Winery
Symington Family Estates
Sogrape Vinhos, S.A.
Michelle Wine Estate
Liberty Wines Limited
Precept Wine, LLC
Deutsch Family Wine & Spirits
Sogevinus Fine Wines SLPrecept Wine, LLC
FREQUENTLY ASKED QUESTIONS
What would be forecast period in the market report?
2022-2028 is the forecast period in the market report
What are the drivers for Fortified Wine market?
The key driving factors of the market are Increasing demand for alcoholic drinks and technological advancements in the manufacturing of alcoholic beverages.
Which region is gaining majority of market share during the forecast period (2022-2028)?
Europe is expected to gain major market share during the forecast period (2022-2028).