Fortified Wine Market by Product Type, Distribution Channel and Geography - Forecast and Analysis - 2023-2027

Fortified Wine Market Analysis Report 2023-2027:

The fortified wine market size is projected to increase by USD 5.19 billion and the market size is estimated to grow at a CAGR of 5.31% between 2022 and 2027. The market is experiencing a notable surge in growth, largely propelled by the rising consumption rate globally. In recent years, there has been a discernible uptick in consumption, driven by several key factors. One significant driver is the shifting preferences of consumers toward healthier and higher quality alcoholic beverages. Fortified wines, renowned for their rich flavors and enhanced alcohol content, have gained favor among consumers seeking a more refined drinking experience.

Furthermore, increasing disposable incomes across various demographics worldwide have contributed to the rise in consumption. As consumers have more spending power, they are increasingly inclined to explore and indulge in premium alcoholic beverages. This trend is particularly pronounced among the working population, who seek out luxurious and sophisticated options for gatherings, celebrations, and leisure activities.

Additionally, the growing popularity of wine tourism has played a pivotal role in driving market growth. Wine-exporting regions have capitalized on this trend by establishing tourism destinations, attracting visitors to vineyards where they can sample wines and gain insight into the winemaking process. This immersive experience not only fosters appreciation but also stimulates demand as consumers seek to replicate the experience at home.

As advancements in flavor and manufacturing techniques continue to enhance the quality and appeal of fortified wines, coupled with the broader acceptance of alcohol consumption, the market is poised for sustained growth in the forecast period. Local brands and international players alike are poised to capitalize on this trend by offering a diverse array of options to cater to evolving consumer preferences and fuel market expansion further.

Fortified Wine Market: Overview

To get additional information about the market, Request Free Sample

Segmentation

This 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. 

By Distribution Channel 

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 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. 

By Type

The market share growth by the sherry segment will be significant during the forecast period. Sherry holds a significant position in the global 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 others.

For a detailed summary of the market segments Request for Sample Report

The segment sherry segment was valued at USD 6.93 billion 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.

Key Regions for the Market 

Get a glance at the market share of various regions View PDF Sample

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 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 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.

Market Dynamics and Customer Landscape

The market is witnessing significant growth, driven by a multitude of factors shaping consumer preferences and industry dynamics. One notable driver is the evolving landscape of alcohol consumption trends, where fortified wines, including dessert wines, are gaining traction among consumers globally. This surge in popularity is fueled by a variety of factors, including changing social dynamics, increased acceptance of alcohol, and evolving tastes and preferences.

With the rise of the e-commerce sector and the accessibility of liquor stores, consumers have greater access to a diverse range of fortified wines from both local and international brands. This accessibility, coupled with the growing acceptance of alcohol consumption, has contributed to the expanding market for fortified wines. Additionally, advancements in flavor and manufacturing techniques have allowed winemakers to produce fortified wines with a wide array of flavors and profiles, catering to diverse consumer palates and preferences.

Moreover, seasonal variations and cultural celebrations also play a significant role in driving demand for fortified wines. During gatherings and celebrations, fortified wines are often favored for their versatility and ability to complement various dishes and menus. Furthermore, the incorporation of innovative ingredients and flavors, such as citrus and bittersweet orange, by mixologists and winemakers has contributed to the popularity of fortified wines among a younger demographic and working population.

Local brands are also making their mark in the fortified wine market, offering consumers unique flavor varieties and experiences. Additionally, the growing trend of cannabis-infused beverages presents a new avenue for innovation within the fortified wine sector, further expanding its appeal and consumer base. With these drivers shaping the market landscape, the fortified wine market is poised for continued growth and innovation in the coming years, driven by consumer demand for diverse and flavorful alcoholic beverages.

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.

Significant Market Trends

The growing popularity of online wine auctions and sales platforms is a primary trend in the 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 market during the forecast period.

Major Market Challenge 

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.

Key Fortified Wine Market Companies Overview

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.

• Key Offering- Anchor Brewers and Distillers LLC - The company offers fortified wine such as Berry Bros. and Rudd St James Finest Reserve Port by Quinta de la Rosa, 2017 DouRosa Tinto Quinta de la Rosa Douro Portugal.
• Key Offering- Bacardi Ltd. - The company offers fortified wines such as Bacardi Lemon.
• Key Offering- Campari Group - The company offers fortified wine such as Wray and Nephew, and Appleton Estate.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• 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

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.

Customer Landscape

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 Market Customer Landscape

Segment Overview

The 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. 

• Product Type Outlook 
  • Sherry
  • Port
  • Vermouth
  • Others

• Distribution Channel Outlook 
  • Off-trade
  • On-trade

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South Asia
    • Chile
    • Argentina
    • Brazil

Market Analyst Overview

The market is influenced by diverse factors ranging from regulatory bodies like the Food Safety and Standards Authority of India (FSSAI) to consumer preferences and seasonal variations. With the e-commerce sector facilitating accessibility, alcohol consumption, including dessert wines, sees fluctuations tied to gatherings and celebrations. Winemakers leverage techniques and flavors, including citrus and bittersweet orange, to craft diverse varieties. Single-spirit bars cater to evolving tastes, while advancements in flavor and manufacture drive popularity. From Baia's Wine produced on small farms to vintage fortified wines like Imbue and Arbour Mist, the market reflects a blend of tradition and innovation in winemaking techniques and flavors.

Also, the market is experiencing a surge in popularity driven by various factors, such as the working population's increasing acceptance of alcohol and the rising demand for alcoholic beverages in both store-based and non-store-based liquor outlets. Grapes, essential in fortified wine production, offer a diverse range of flavors and varieties, catering to consumers' preferences for different taste profiles. Brands like Wild Horse and Maison Mirabeau are gaining traction, offering fortified wines with unique flavor combinations, including wormwood-infused options. Chefs and mixologists in the food service industry are incorporating fortified wines into dishes and mixed drinks, leveraging their sweetness and body to enhance flavor profiles. With a growing emphasis on organic and biodynamic production methods, fortified wine producers are fermenting grapes underground and aging them in clay containers to create distinctive, high-quality products. As fortified wines continue to gain popularity in the beverage market, their versatility and flavor diversity make them a sought-after choice for consumers seeking unique drinking experiences.

Moreover, the market is experiencing a surge in demand, driven by the popularity of alcoholic beverages and the emergence of local brands offering diverse flavor varieties. Liquor stores are witnessing increased interest in fortified wines, complementing the rising trend in alcoholic beverage consumption. Cannabis-infused fortified wines are gaining traction, catering to evolving consumer preferences for unique flavors. From different flavors to menus showcasing wine preferences, fortified wines are making their mark in the food and beverage industries. With fermentations happening underground, local brands are producing finished wines, including brandy, across five acres of vineyards.

Fortified Wine Market Scope
Report Coverage	Details
Page number	150
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.31%
Market growth 2023-2027	USD 5.20 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.48
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 49%
Key countries	US, France, Italy, Germany, and the UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
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.
Market dynamics	Parent market analysis, Market forecasting, 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.
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.

BUY NOW Full Report and Discover more

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. Get in touch