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The fortified wine market size is projected to increase by USD 5,199.91 million and the market size is estimated to grow at a CAGR of 5.31% between 2022 and 2027.
This fortified wine market report extensively covers market segmentation by product type (sherry, port, vermouth, and others), distribution channel (off-trade and on-trade), and geography (Europe, North America, APAC, South America, and middle east and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
The rising consumption rate of wine consumption is driving growth in the fortified wine market. In recent years, there has been a marked increase in the consumption of fortified wines on the global market. This growing trend can be attributed to various factors, such as changing consumer preferences, increasing disposable incomes, and expanding wine tourism. The shift in consumers' preferences towards healthier and higher quality alcoholic beverages is one of the main reasons for rising wine consumption. The increasing disposable incomes of consumers around the world have also played a major role in driving market growth. Furthermore, wine tourism has gained significant popularity in recent years, leading to an increase in wine consumption. A number of wine-exporting regions have set themselves apart from the rest by establishing wine tourism destinations that allow visitors to see vineyards, taste wines, and get an insight into winemaking processes. Thus, it is expected to increase the demand for forfeited wines, which will propel the growth of the global fortified wine market during the forecast period.
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Our researchers analyzed the data with 2022 as the base year, along with the key trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
The growing popularity of online wine auctions and sales platforms is a primary trend in the fortified wine market. The growing popularity of online auctions and sales platforms on the worldwide market for forfeited wines is a reflection of this trend. These online platforms have become a preferred medium for buying and selling wines, attracting wine enthusiasts and collectors from around the world. The convenience offered by online wine auctions and sales platforms has been one of the main reasons for their increasing popularity.
In addition, online wine auctions and sales platforms offer a global reach, connecting buyers and sellers from different parts of the world. With this global reach, forfeited wines can be sold to a wider audience and buyers can access wines that may not be available in their local markets. This globalization of the market has contributed to the growing popularity of online platforms in the forfeited wine industry. Thus, the above-mentioned factors are expected to increase the demand for forfeited wines, which will propel the growth of the global fortified wine market during the forecast period.
The negative perception associated with fortified wines is a major challenge in the market. The negative perception is often associated with forfeited wines, primarily due to their perceived inferior quality and potential health risks. Forfeited wines are those that have been confiscated or abandoned by their original owners and subsequently sold or auctioned off. The perception that the wines are not as good as they seem is one of the main reasons for this unfavorable attitude towards a forfeited wine. As these wines have been forfeited, it is often assumed that they are of lower quality compared to wines that are sold through traditional channels.
Moreover, consumers might believe that the original owners forfeited these wines for a reason, such as poor taste or production issues. Potential buyers can be dissuaded from considering forfeited wine as a potential option due to this perception. Furthermore, the lack of trust in the source and handling of forfeited wines can also contribute to the negative perception. Consumers may be concerned about the possibility of contamination or improper storage, which can have a detrimental impact on wine quality and are potentially harmful to health. Thus, it is expected to decline the demand for forfeited wines, which will negatively impact the growth of the global forfeited wine market during the forecast period.
Off-trade refers to the sales of wine that occur outside of bars and restaurants, such as retail stores and online platforms. This distribution channel has been growing steadily in recent years, driven by factors such as convenience, affordability, and a wider variety of options available to consumers. In view of the convenience they offer, consumers have become attracted to online retailers specializing in wine sales. Through a wide selection of wines from various regions and producers, as well as reading reviews and price comparisons on your own time, customers can take advantage of the comfort of their homes. This eliminates the need to physically visit multiple stores, saving time and effort. There are specialized wine sections in numerous supermarkets, giving a wide range of choices at various price points. As a result, it is easy for consumers to make wine purchases on their own during normal grocery shopping. Supermarkets often run promotions and discounts on wine, making it more affordable and accessible to a larger consumer base. The availability of wine in supermarkets introduces it to a broader audience who may not otherwise have considered purchasing wine from specialized retailers.
The market share growth by the sherry segment will be significant during the forecast period. Sherry holds a significant position in the global fortified wine market due to its unique characteristics and high demand among wine enthusiasts worldwide. The complexity of production processes is a major factor contributing to growth in the sherry segment. The method of aging sherry wines using the solera system sets it apart from other wines.
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The segment sherry segment was valued at USD 6,939.37 million in 2017 and continued to grow until 2021. The Sherry segment has witnessed a steady increase in recent years. The unique flavor profile and food compatibility of sherry have made it a favorite among wine enthusiasts around the world. Furthermore, sherry's use as a cocktail ingredient has been renewed due to the growing demand for craft cocktails. Such factors will increase the segment growth in the market during the forecast period.
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Europe is estimated to contribute 49% 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. Europe holds a significant position in the global forfeited wine market. With its rich history and diverse wine-making regions, Europe has established itself as a key player in this industry. Europe benefits from its long-standing tradition of wine production. Countries such as France, Italy, and Spain have been producing wine for centuries, and their expertise in winemaking is unrivaled. This expertise is reflected in the quality of the wines produced and has earned them a reputation for excellence. Such factors will increase the market growth in this region during the forecast period.
The global distillers and vintners market experienced a decline both in production and consumption in 2020 during the COVID-19 pandemic, owing to the temporary shutdown of the on-trade segment (restaurants, bars, and others), cancelation of outdoor events (concerts and sporting events), and ban on international travel. However, as a consequence of the relaxation of security norms, the global market for distillers and vintners was starting to recover gradually in 2021. Since the government has relaxed the policies and regulations, the market is expected to grow at a moderate pace during the forecast period.
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.
The fortified wine market report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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 market research 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 growth strategies.
Global Fortified Wine Market Customer Landscape
The fortified wine market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Fortified Wine Market Scope |
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Report Coverage |
Details |
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Page number |
150 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.31% |
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Market growth 2023-2027 |
USD 5,199.91 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.48 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 49% |
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Key countries |
US, France, Italy, Germany, and the UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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 growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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