Fortified Wine Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Fortified Wine Market size is projected to reach a CAGR of 12.3% from 2023-2030.

Fortified wine is blended with various vintages and grapes. It is distilled with spirits like brandy to enhance its flavour and strength. Due to its high sweetness level, and tendency to be consumed after meals, it is often referred to as 'Dessert Wine'. This product has two main product variants, named dry wine and sweet wine, the production of which depends on the time addition of brandy. The cheaper the wine, the lesser time it has taken to distil with brandy. Also, fortified wine is widely consumed due to its nutritive properties.

The rising consumption and demand for alcoholic drinks in various special events are further supporting the industry's growth. The consumption of the product is considered social recognition, which in turn will drive the industry growth during the forecast timeline. In addition to this, various health benefits are associated with consumption of the fortified wine. These are the major driving factors for market growth. Moreover, the increasing investment in R&D by various manufacturers to produce innovative products of fortified wine across the globe is creating opportunities for the market over the upcoming years.

On the other hand, the increased taxation on wine in several nations and stringent government rules and regulations are hindering the growth of the market during the forecast period.

The COVID-19 outbreak has affected the wine market globally. The lockdown situation has shut all the industries due to which production is affected. All the bars, restaurants, pubs, and liquor stores, in almost all countries, have been shut, disrupting the sales volume and frequency of the wine. Alcohol products do not come under the list of essential items made by the government amid the Corona pandemic, which has given a massive blow to the sales of alcohol. Also, trade activities are at a halt, again affecting the supply of wine and other alcoholic beverages.

Delvens Industry Expert's Standpoint

The growth in the market is primarily driven by the rising demand for premium and luxury wines, increasing wine consumption across the globe, and growing demand for fortified wine in cocktails. Furthermore, the increase in online retailing and the extension of the supply network both drive this market. Along with these, there are growing consumer disposable incomes, enhanced standard of living, elevated consumption of alcoholic beverages, and enhanced food and beverage sectors. Moreover, the upgradation in manufacturing and innovation in flavour & taste are expected to grow the fortified wine market in the next years.

Market Portfolio

Key Findings

• The product segment is further segmented into Port wine, Vermouth, Sherry and Others. The vermouth segment accounted for the largest market share during the forecast period and is anticipated to expand during the period 2023-2030. The increasing use of vermouth wine as an antiseptic and medicinal drug to treat cold and viral diseases is expected to drive market growth.

• The distributional channel segment is further fragmented into Pub, Bars & Restaurants, Internet Retailing, Liquor Stores, Supermarkets and Others. The increasing number of liquor stores across the globe is driving the market. Various manufacturers are selling their products through offline channels, which is propelling the growth of the segment.
   
• The market is also divided into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Europe has the largest contribution to the global fortified wine market, with over 50% in 2022. The growing consumption of wine in countries like Germany, France, Italy, Spain, and Portugal is expected to drive the market in this region.
   
• The lockdown announced during the COVID-19 pandemic caused disruption in transportation and suspended the supply of raw materials for a certain time, and affected the manufacturing of fortified wine. However, the rising awareness about health and promotion of the use of fortified wine after the COVID-19 pandemic has projected to witness a healthy market growth rate in the upcoming years.

Regional Analysis

Europe to Dominate the Market

• Europe has the largest contribution to the global fortified wine market, with over 50% in 2022. The growing consumption of wine in countries like Germany, France, Italy, Spain, and Portugal is expected to drive the market in this region.
   
• In addition to this, the growing demand for flavoured wine has projected market growth during the forecast period.

Competitive Landscape

• Bacardi Limited
• Davide Campari-Milano S.p.A
• The Wine Group
• E&J Gallo Winery
• Anchor Brewing Company
• Atsby Vermouth
• Gancia
• Imbue
• Symington Family Estates
• Sogrape Vinhos, S.A.
• McWilliam’s Wines Group Ltd
• Bodegas Lustau
• González Byass
• Constellation Brands, Inc.
• Treasury Wine Estate
• Trinchero family Estates
• Liberty Wines Ltd.
• Precept Wine, LLC
• Backsberg
• Taylor’s Port

Recent Developments

• 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, 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.

Reasons to Acquire

• Increase your understanding of the market for identifying the best and most suitable strategies and decisions on the basis of sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends and factors.
   
• Gain authentic and granular data access for Fortified Wine Market so as to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope