Report Overview

Global Fortified Wine Market is thriving as a result of the effects of globalization and changes in the level of international trade and geography of production and consumption, as well as the sharp evolution in taste, preferences, and consumer lifestyles, which has a significant impact on sales of various wines, including fortified wines.

Global Fortified Wine Market - Industry Trends & Forecast Report 2028

Global Fortified Wine Market was worth USD 12.73 billion in 2021 and is further projected to reach USD 27.35 billion by the year 2028, exhibiting a CAGR of 11.6% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the wines' premiumization and the health advantages they offer. In the coming years, the market expansion is also anticipated to be sped up by technical developments, industrial improvements, and innovative tastes. Increased alcoholic beverage consumption and demand at various special events are contributing to the industry's growth. Consumption of the product is seen as obligatory at social gatherings like weddings. The market will undoubtedly advance as a result in the next years. Furthermore, drinking fortified wine has a lot of positive health effects. These are the major driving factors for market growth.

Fortified Wine - Overview

The wine that has had distilled alcohol, typically brandy, added to it is referred to as fortified wine. Winemakers have created a wide variety of fortified wine varieties over several centuries, including port, sherry, Madeira, marsala, commanders wine, and the aromatized wine vermouth. Additionally, fortified wine is any wine that contains more than 16 percent (16%) and no more than 24 percent (24%) alcohol by volume and is produced using grapes, fruits, berries, rice, or honey. It may also contain pure cane, beet, dextrose sugar, or pure brandy made from the same grape variety. Since ethanol is a natural antibacterial, wine was fortified in part to preserve it. Although grape brandy is typically used to generate fortified wines, the neutral spirit that has been manufactured from grapes, grain, sugar beets, or sugarcane may also be used as an additional alcoholic beverage.

Global Fortified Wine Market Forecast and Trends

Growth Drivers

Growing Interest in Culture, Wine, and Food Pleasures

Fortified wines have a long history of supporting the worldwide wine industry. Since social media and the rise of the digital age have made knowledge more widely available, wine culture is now ubiquitous in many different parts of the world. Because of the discovery of drier port wines by wine collectors and a steady move away from sweet wines to drier varieties, port wines are now consumed more frequently than other fortified wines, such as Sherry.

Internet Sales of Fortified Wine Grow in Popularity

The influence of the 'convenience' factor can also be seen in the distribution trends of fortified wines. The growing popularity of new trade channels, as well as the rise of discounters, is defining growth strategies, while manufacturers are progressively shifting product sales to e-commerce, which is becoming the market's key driving force. The easy availability of a varied selection of items and door-to-door delivery services are attracting a bigger number of consumers with significant spending power, improving manufacturers' profit margins. All these factors boost the growth of the Global Fortified Wine Market during the forecast period (2022-2028).

Market Focuses on New Trends

Both the alcoholic and non-alcoholic beverage industries are experiencing a radical upheaval as a result of the wellness era's emergence, the mindful consumption trend, and consumers' preference for convenient yet high-quality products. Fortified wine producers are concentrating on adhering to new alcoholic beverage packaging trends, particularly wine in cans, in light of the rising demand for ready-to-drink (RTD) alcoholic beverages. This tactical approach is anticipated to draw in new generations of customers and broaden the occasions for wine consumption. Furthermore, market players will need to utilize creative integrated techniques to establish new marketing tactics as cocktail culture takes root and customers switch more and more from inexpensive to pricier fortified wines.

Rising Premiumization Product Demand & New Flavor Development

The growth of the fortified wine industry is encouraged by premiumization since premium fortified wines have a positive and promising effect on consumer perception. As the middle-class portion expands, premiumization is also noticeable in several places. Premiumization encourages the consumption of fortified wine by creating a sense of status around it. Given that consumers' impressions of premium fortified wines are favorable and upbeat, premiumization is expected to accelerate the expansion of the fortified wine market. The fortified market will probably benefit from this in the foreseeable future. All these factors propel the growth of the Global Fortified Wine Market during the forecast period (2022-2028).

Restraints

Fortified Wines have high Sugar and Calorie Content

Because wine is made from grapes, it naturally contains more sugar than the majority of alcoholic beverages. Since spirits are added to the wine while it ferments and before the sugars are turned into alcohol, many types of fortified wine contain even more sugar. After fermentation, some kinds are sweetened, significantly raising the sugar level. Each 3-ounce (88-ml) cup of port wines, which are sweet dessert wines, contains around 7 grams of sugar. Numerous health conditions, including diabetes, obesity, liver disorders, and heart disease, have been linked to sugar consumption. Dietary Guidelines for Americans 2015-2020 advise reducing added sugar consumption to less than 10% of daily calories, or about 50 grams.

Impact of COVID-19 on Global Fortified Wine Market

Production of fortified wine was hampered by the COVID-19 pandemic-related lockdown, which interfered with transportation and momentarily interrupted the delivery of raw materials. But in the years to come, a significant market growth rate may result from improved health awareness and encouragement of the use of fortified wine in the wake of the COVID-19 pandemic. The COVID-19 epidemic has harmed the market for fortified wine. Due to the lockdown, all businesses were closed, which had an impact on productivity. Almost all bars, restaurants, pubs, and liquor stores were shut down worldwide, which had an impact on the amount and frequency of wine sales. Products containing alcohol were not on the government's list of necessities.

Global Fortified Wine Market - By Product

Based on the product, the Global Fortified Wine Market is segmented into Port Wine, Vermouth, Sherry, and Others. Among these, the vermouth segment accounts for the largest share in the Global Fortified Wine Market. The growing usage of vermouth wine as an antiseptic and medicinal medication to treat colds and viral infections will fuel market expansion. Rising demand for dessert wine from European countries such as the United Kingdom, Germany, France, and Italy is expected to drive market expansion during the forecast period. Moreover, from 2022 to 2028, the sherry segment is predicted to increase at the fastest pace. This market has grown as a result of sherry wine's rising acceptance as a warming supper beverage among western customers. Sherry wine has various health advantages, including antioxidants, lowering cholesterol, preventing hypothermia, and many others, which have predicted the rise of this market throughout the projection period.

Global Fortified Wine Market – By Distribution Channel

Based on distribution channel, the Global Fortified Wine Market is segmented into Pub, Bars & Restaurants, Internet Retailing, Liquor Stores, and Super Markets. Among these, the liquor stores segment holds the largest market share. The growing number of liquor outlets around the world is propelling the market. Several manufacturers are offering their products through offline channels, which is pushing the segment's growth. Furthermore, convenient access to different products through retailers is expected to fuel segment expansion. Because of improved distribution channel networks around the world, liquor stores are likely to stay prominent during the forecast period. The internet retailing segment of the fortified wine market is predicted to grow the fastest, at a CAGR of 13.1% between 2022 and 2028. Because of the high rate of internet penetration, the e-commerce sector has seen a surge in popularity among consumers in recent years. Several manufacturers are selling alcoholic beverages on their websites and e-commerce platforms, which will drive industry demand.

Global Fortified Wine Market - By Region

Geographically, the Global Fortified Wine Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. With approximately 45% of the global market for fortified wine in 2021, Europe is the region that contributes the most. The market in this region is anticipated to be driven by the increased consumption of wine in nations like Germany, France, Italy, Spain, and Portugal. Additionally, during the anticipated period, the market is expected to develop due to the rising demand for flavored wine. Moreover, the fortified wine market in the Asia Pacific is predicted to develop at the quickest rate, with a CAGR of 13.1% from 2022 to 2028. The demand in the region will be driven by the large alcoholic product consumer bases in China, India, and Japan. The region is expected to increase as a result of people's growing disposable income and growing awareness of the health benefits of drinking fortified wine.

Competitive Landscape

The leading market players in the Global Fortified Wine Market are E. & J. Gallo Winery, Constellation Brands Inc, Treasury Wine Estates, Trinchero Family Estates, Deutsch Family Wine & Spirits, The Wine Group, Liberty Wines Limited, Precept Wine LLC, Michelle Wine Estate, Backsberg, Sogevinus Fine Wines SL, Taylor’s Port, Albina & Hanna, and other prominent players.

The Global Fortified Wine Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Recent Development

• 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.

Scope of the Report

By Product

• Port Wine
• Vermouth
• Sherry
• Others

By Distribution Channel

• Pub
• Bars & Restaurants
• Internet Retailing
• Liquor Stores
• Super Markets

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa