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The fortified wine market size is forecast to increase by USD 4.39 billion and is estimated to grow at a CAGR of 4.36% between 2023 and 2028. The global wine market is experiencing significant growth due to rising consumption rates and an increasing preference for premium and rare wines. According to recent market research, the global wine market is projected to reach a value of USD 428.9 billion by 2027, growing at a CAGR of 3.2% during the forecast period. This growth can be attributed to the expanding middle class population in emerging economies, increasing disposable income, and the growing trend of fine dining and socializing. Furthermore, collectors and investors are showing a keen interest in rare and collectible wines, driving up demand and prices for these unique bottles. Overall, the wine market is poised for continued growth, offering numerous opportunities for producers, distributors, and retailers.
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The Market is witnessing significant growth due to the health benefits associated with these alcoholic beverages. Fortified wines, such as Sherry, Port, and Vermouth, offer various health benefits, including antioxidant properties. The trend of premiumization is driving the market, with consumers willing to pay a higher price for superior quality and unique flavors. Innovation in flavors is also a key factor, as mixologists continue to create new cocktails using fortified wines. Social recognition plays a crucial role in the market, with brand recognition being a significant factor for consumers. Liquor stores and single-spirit bars are major distribution channels for fortified wines. The FSSAI (Food Safety and Standards Authority of India) has set regulations for the production and sale of fortified wines, ensuring their quality and safety. The Vermouth segment holds a significant share in the market, followed by the Dessert wine and Sherry segments. Key players in the market include Sogevinus Fine Wines, Vinbros & Company, Taylor's Port, Backsberg, and Glenfiddich. Innovation in production methods, such as the use of Amontillado Sherry casks by Glenfiddich, is helping to differentiate products and attract consumers. Social media promotions are also an effective marketing strategy for fortified wine brands. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising consumption rate of wine consumption is notably driving market growth. The global market has experienced a notable increase in consumption, driven by several factors. One of the primary reasons is the evolving consumer preferences towards healthier and premium alcoholic beverages. Fortified wines, with their lower alcohol content and antioxidant properties, are perceived as a healthier option compared to other alcoholic drinks.
Furthermore, the market is witnessing innovation in flavors and premiumization, catering to the diverse taste preferences of consumers. Social recognition also plays a role, as fortified wines, such as Vermouth and Dessert wine, are popular choices for mixologists in single-spirit bars. The Sherry and Port segments are also gaining popularity due to their unique flavors. Despite the health benefits, increased taxation and regulatory bodies like FSSAI pose challenges to the market. Thus, such factors are driving the growth of the market during the forecast period.
Growing popularity of online wine auctions and sales platforms is the key trend in the market. The market is experiencing a surge in demand due to various factors, including health benefits, premiumization, and innovation in flavors. These alcoholic drinks offer numerous health advantages, making them an attractive choice for the working population and those seeking antioxidants. Premiumization is another significant trend, with consumers preferring high-end and exclusive brands for social recognition.
Moreover, innovation in flavors is also driving growth, with the Vermouth segment and dessert wine gaining popularity. However, increased taxation and regulatory bodies like FSSAI pose challenges. Liquor stores and internet retailing are the primary channels for distribution, with production facilities and distribution centers playing a crucial role. Thus, such trends will shape the growth of the market during the forecast period.
Negative perception associated with fortified wines is the major challenge that affects the growth of the market. Fortified wines, including Vermouth and Dessert wines like Sherry and Port, offer various health benefits, making them an intriguing alcoholic beverage choice for consumers. Premiumization and innovation in flavors have led to a shift in social recognition for these wines, moving beyond the negative perception of inferior quality.
Moreover, alcoholic drinks, such as fortified wines, have been subjected to increased taxation and regulatory oversight from organizations like the Food Safety and Standards Authority of India (FSSAI). The Vermouth segment, in particular, has gained traction with the introduction of new flavors and product innovations, such as Maison Mirabeau's Rose Vermouth. The working population, especially those who enjoy alcohol consumption, appreciate the antioxidant properties of fortified wines, making them a popular choice for seasonal variations. Grapes, the primary ingredient in fortified wines, have been found to contain resveratrol, a polyphenol that provides numerous health benefits. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bacardi Ltd: The company offers fortified wine such as Bacardi Lemon.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The sherry segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the increasing health benefits associated with moderate alcohol consumption, premiumization, innovation in flavors, and social recognition. Sherry, a popular fortified wine, holds a prominent position in this market owing to its unique production process and various health benefits.
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The sherry segment was the largest segment and valued at USD 7.15 billion in 2018. The elaborate solera system used in sherry production results in its distinct flavor profile and complexity, which is highly sought after by discerning consumers. Premiumization is another key trend driving the growth of the market. Brands like Maison Mirabeau's Rose Vermouth and Martini Fiero are gaining popularity due to their innovative flavors and brand recognition. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is experiencing a revival, driven by the growing trend towards natural ingredients and mixology in cocktail culture. With the rise of dessert wines and aperitifs, fortified wines such as Madeira and Port have regained popularity. The COVID-19 pandemic and resulting lockdowns and social distancing measures have led to an increase in at-home consumption, driving demand for low-alcohol and sessionable choices. Hence, such factors are driving the market in APAC during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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A Thriving Sector of Alcoholic Drinks Industry Fortified wines, a unique category of alcoholic beverages, have been gaining significant traction in the global market due to their distinct taste and various health benefits. These wines, made by adding distilled spirits to wine, offer a rich and complex flavor profile that caters to evolving consumer preferences. Premiumization and innovation in flavors have been key drivers in the market. Brands like Maison Mirabeau's Rose Vermouth and Martini Fiero have gained popularity by introducing new and unique flavors to the market. The Vermouth segment, in particular, has seen a surge in demand due to its versatility in cocktails and its association with social recognition. The Dessert wine segment, including Sherry and Port, has also been witnessing steady growth due to their sweet and rich taste.
Moreover, the Sherry segment, in particular, has seen a resurgence in popularity due to its antioxidant properties and the innovation in flavors like Amontillado Sherry casks. The market is also influenced by various factors such as increased taxation, FSSAI regulations, and seasonal variations. The market landscape depends on Low-alcohol choices, Sessionable choices, Sustainable production, Organic production, Pub, and restaurants. The production and distribution of fortified wines require specialized facilities, including production facilities and distribution centers. Alcohol consumption patterns and consumer preferences have been shifting towards online retailing and single-spirit bars. Brands like Glenfiddich, Sogevinus Fine Wines, Vinbros & Company, and Taylor's Port have been leveraging social media promotions and collaborations with mixologists to increase brand recognition. The market is expected to continue its growth trajectory, with emerging trends such as the use of grapes from different regions and the exploration of new flavors, including those derived from cannabis. The working population, especially the millennials, are driving the demand for fortified wines, making it an exciting and dynamic market to watch.
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Market Scope |
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Report Coverage |
Details |
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Page number |
152 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
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Market growth 2024-2028 |
USD 4.38 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.11 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 38% |
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Key countries |
US, France, Italy, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Anchor Brewers and Distillers LLC, Bacardi Ltd., Campari Group, Contratto srl, DOWS Port, E. and J. Gallo Winery, Emilio Lustau S.A., Fonseca Port Wine, Fratelli Gancia and C. SpA, Mazurans Vineyards Ltd., Precept Wine, Ramos Pinto, Rhys and Rylee LLC, SOGEVINUS FINE WINES SA, Sogrape SGPS SA, Symington Family Estates Vinhos S.A., Taylors Port, The Great Wine Co., Vinbros and Co., and Vinimark Trading Pty Ltd. |
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Market dynamics |
Parent market analysis, market report, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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