Fortified Wine Market

Fortified Wine Market Outlook (2023-2033)

The global fortified wine market is estimated to evolve at a CAGR of 6.8% from 2023 to 2033. The market stands at US$ 13 billion in 2023 and is slated to reach US$ 25 billion by 2033-end.

The adoption of dry wines is projected to rise at a significant CAGR over the forecast period. Due to the lack of sugar in dry wines, diabetics can easily consume them.

With the advent of the digital age and the quick uptake of social media, information is now easily accessible, which has resulted in the expansion of wine culture in many different parts of the world.

Fortified wines are prepared by blending wines with distilled liquor, for example – brandy. Fortified wines, often confused with spirits, were originally utilized as a preservation method. Wines are usually fortified for enhancing their strength and flavor. These wines are often referred to as “dessert wines”, owing to their high sweetness levels, coupled with their tendency of being consumed after meals.

Product premiumization is considered to be a major factor driving demand for fortified wines around the world. The majority of consumers believe that premium products comprise high-quality ingredients. There has been an uptake in demand for new flavors in fortified wine over the past few years.

Fortified wine is regarded as a particular wine that has been enhanced by the addition of alcohol during the fermentation process of the base wine to raise the average alcohol concentration to approximately 17-18%. Traditional fortified wines are associated with regions where the weather and soil are unfavorable for growing grapes that can be used to make high-quality light wines.

To create beverages with a variety of character styles and alcoholic strengths, the practice of adding alcohol made from grapes should be fully or partially fermented by the action of yeasts. Due to its dietary benefits and acceptance as an alcoholic beverage, wine is widely consumed.

Blends of grapes from different vintages are used to make fortified wines. The vast majority of fortified wines fall into one of two categories: sweet fortified wines or dry fortified wines. The fortified wine itself determines how long it ages.

A major revolution is taking place in both the alcoholic and non-alcoholic beverage industries because of the emergence of the wellness era, the mindful consumption trend, and consumers' preference for convenient yet high-quality products. Manufacturers of fortified wines are focusing on following new alcoholic beverage packaging trends, especially wine in cans, in light of the rising demand for ready-to-drink (RTD) alcoholic beverages.

A new generation of customers is anticipated to be drawn in by this tactical approach, which will also broaden the occasions for wine consumption. Additionally, market players will need to utilize creative, integrated techniques to create new marketing tactics as cocktail culture gains traction.

The market for fortified wines is progressively being propelled by rising consumer demand for new product developments in terms of flavor profiles. New and exotic flavors of fortified wine have emerged as a result of continuously changing tastes and preferences.

Report Attributes	Details
Fortified Wine Market Size (2023)	US$ 13 Billion
Projected Market Value (2033)	US$ 25 Billion
Global Market Growth Rate (2023-2033)	6.8% CAGR
Market Share of Vermouth	60%
Key Companies Profiled	Taylor's Port Albina & Hanna Contratto Vinbros Treasury Wine Estates Backsberg Mazuran's Vineyards Limited E. & J. Gallo Winery Constellation Brands, Inc. Trinchero Family Estates The Wine Group Liberty Wines Limited Precept Wine, LLC Michelle Wine Estate

Why are Sales of Fortified Wines Expected to Grow Swiftly?

“High Consumption of Alcoholic Beverages and Production Upgrades & Taste Innovation Fueling Sales of Fortified Wines”

The fortified wine industry is expanding as a result of consumers' increasing acceptance of alcohol and preference for wine, particularly in emerging countries. The growth of online retailing and the expansion of distribution networks both assist this. The market is growing as a result of additional causes such as rising consumer disposable incomes, improving living standards, increasing alcoholic beverage consumption, and developing food and beverage sectors.

Leading players' increasing efforts in product marketing and promotion to increase consumer awareness are anticipated to have a substantial impact on industry growth. Fortified wines are not well known or valued in many countries, and their flavor is also viewed as subpar and unsatisfactory. Thus, it is anticipated that the expanding fortified wine educational marketing will benefit the industry growth on a global scale.

Additionally, upgrades in production and taste innovation are anticipated to speed up market growth over the coming years. Alcoholic beverages are becoming in demand for a variety of special occasions, which is assisting the business' success. Throughout the projection period, industry growth will be fueled by consumer demand, which is viewed as social recognition. Fortified wine consumption also has many advantageous health impacts. These are the main forces behind market expansion.

How is Industry Growth Being Restrained to Some Extent?

“Stringent Government Regulations and Availability of Alternatives”

A large number of people are actively participating in campaigns to spread awareness about the adverse health effects of alcohol consumption. In addition, excessive consumption of these wines has resulted in numerous negative health effects.

Higher consumption of fortified wines by consumers has led to a rise in risks of diseases such as liver disease, heart disease, and certain cancers. This factor is expected to impede demand for fortified wines on a large scale over the coming years.

The industry would experience slower development throughout the forecasted period as a result of tighter government controls, increased wine taxes in several countries, and accessibility of substitutes.

How Can Start-ups Carve a Space for Themselves in This Industry?

“New Companies Should Invest in R&D to Offer Improved Products to Consumers”

Emerging market players are investing in R&D and implementing advanced techniques in production, and offering unique products for consumers.

• In the Georgian town of Obcha, Baia's Wine is a small start-up with a significant environmental goal. The company focuses on conventional winemaking methods. On a modest, five-acre farm, native grapes are grown. They are afterward buried underground in clay vessels (without any additions) to ferment. 90% of the finished wines are sold at elite restaurants in the US and are all organic and biodynamic.

Which Region is Considered Profitable for Fortified Wine Providers?

“Rapid Integration of New Technologies for Fortified Wine Production in Europe”

Europe accounts for 50% share of the global market.

The market is primarily driven by rising fortified wine consumption among the population, the presence of growing economies, an increase in the usage of new technologies, and ongoing research and development among producers to discover newer techniques to produce fortified wine.

Country-wise Insights

What Makes the U.S. a Leading Fortified Wine Producer in North America?

“High Presence of Single-spirit Bars in the U.S.”

The market is expanding due to the large consumer base for alcoholic beverages, growing consumer awareness of the health advantages of fortified wine use, and rising disposable incomes.

Fortified wines have increased in popularity across the country as a result of the introduction of single-spirit bars. In these pubs, the love of vintage fortified wines such as sherry and port is especially noticeable.

Why is Fortified Wine Consumption Increasing across Germany?

“Surge in Retail Establishments and Internet Users across Germany”

The market in Germany is predicted to experience strong growth of the increasing acceptance of alcoholic beverages, the surge in retail establishments and internet users, and the growing consumption of fortified wines as an after-meal beverage.

Why is Japan a Prominent Market for Fortified Wine Suppliers?

“Rising Tourism and Growing Popularity of Fortified Wines among Millennials”

The existence of a huge population, rising tourism, and the product's rising appeal, especially among millennials are driving market growth in Japan. The market is anticipated to develop as a result of the food service channels, such as hotels and restaurants, finding more interesting methods to serve Madeira with every course of the meal.

Category-wise Insights

Which Product is Forecast to Gain the Highest Market Share?

“Vermouth More Preferred as Medication to Treat Colds & Viral Illnesses”

By product, the market is segmented into madeira, marsala, port, sherry, and vermouth. Vermouth wine accounts for 60% share of the global market. Market expansion is anticipated to be fueled by the growing usage of vermouth wine as a medication to treat colds and viral illnesses.

Vermouth is a base loaded with alcohol and different botanicals. These varieties of fortified wine are consumed as an aperitif around the world. In recent years, customers have migrated away from more conventional alcoholic beverages such as gin and brandy in favor of cocktails and other types of mixed drinks. In bars and hotels, these drinks are highly ordered.

It is predicted that these consumer trends will drive the demand for vermouth wine over the coming years. As vermouth wine has a stronger flavor than wine, it is widely used in cooking as a substitute for white wine. If used in some meals, it might be too much. Dry vermouth's herbal flavor makes it a desirable addition to marinades for pork and chicken as well as fish meals. These characteristics of vermouth wine have fueled industry expansion.

Is e-Commerce the Go-to Route for the Sales of Fortified Wine?

“e-Commerce Gaining Significant Momentum Due to Easy Availability of Diverse Range of Products at Doorsteps”

The market is classified into modern trade, supermarkets/hypermarkets, liquor stores, and e-Commerce based on the sales channel.

In the last few years, buying alcohol online has grown in popularity and is anticipated to do so even more over the coming years. The benefits to consumers are numerous, including easy shopping, prompt home delivery, a variety of offers, and others. As a result, large markets are heavily reliant on the online sales channel.

As a result, manufacturers are concentrating on creating new e-Commerce platforms and forming partnerships to increase their market share. Future growth is additionally anticipated to be supported by the advancements and enhanced distribution networks in e-Commerce.

For wine producers, the availability of significant discounts and alluring offers through the e-Commerce channel is anticipated to present profitable expansion potential.

Due to the increasing rate of internet use, the e-Commerce industry has experienced a profitable expansion in recent years. Numerous manufacturers are selling alcoholic beverages on their websites and through online marketplaces.

Competitive Landscape

Key fortified wine producers are concentrating on creating new formulations and releasing new products in the market. Top companies also pursue new product development because product differentiation broadens their customer base.

Intense innovation from the major businesses has resulted from the increased customer desire for new and distinctive flavors to satisfy their changing preferences.

For instance,

• To support its long-term innovation objectives and future commercial expansion, E. & J. Gallo Winery announced that it will invest US$ 423 billion in the construction of a new manufacturing facility and distribution hub.
• In 2021, E&J Gallo, a California-based wine company, revealed that it had sold its two most important fortified wine brands to Precept Wine, a Seattle-based business. Precept had purchased the company's fortified wine brands Fairbanks and Sheffield Cellars. It is anticipated that this initiative would improve Precept's expanding wine portfolio and increase its total footprint.

Key Segments Covered in Fortified Wine Industry Research

• By Product:

  • Madeira
  • Marsala
  • Port
  • Sherry
  • Vermouth

• By Sweetness Level:

  • Dry
  • Semi-sweet
  • Sweet

• By Sales Channel:

  • Modern Trade
  • Supermarkets/Hypermarkets
  • Liquor Stores
  • e-Commerce

• By Region:

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