Fortified Wine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global fortified wine market is expected to register a CAGR of 5.01% during the forecast period, 2019 - 2024.

Fortified wines are the blends of grapes and various vintages, and the majority of the fortified wines are similar in their classification. The actual aging of the fortified wine depends upon the fortified wine itself and it is found that the cheaper the fortified wine lesser is the time it has taken aging in the oak.

COVID-19 made a major impact on the wine industry due to the forced closure of on-trade wineries in various countries such as the United States, the United Kingdom, India, almost acrss the globe to control the impact of the pandemic.

The fortified wine market is especially driven by the growing trend of alcohol consumption in developing countries. The growth of the fortified wine market is also affected by seasonal variations, owing to the production of grapes. Consequently, the prices of grapes also affect the prices of the fortified wines. Macro-economic factors like improved disposable income is also boosting the growth of the fortified wine market in developing countries.

The premiumization aspect of alcoholic drinks has also been significant and evident in the fortified wine industry. Companies are targeting the emerging and influential economic class of population, owing to their higher discretionary spending on such products.

Key Market Trends

Increasing Demand for Premiumization Alcohol

The fortified wine market is increasingly driven by growing demand for product innovations in terms of new flavor varieties. The rapidly evolving tastes and preferences have led to the emergence of new and exotic flavors of fortified wine. In fact, after the legalization of marijuana in many states of the United States, many fortified wines are being launched infused with marijuana. Premiumization is also expected to further fuel the growth of the fortified wine market as consumer perception regarding the premium fortified wines is both positive as well as promising. The premiumisation associated with fortified wine is also evident in developing regions due to emergence of the aspirational middle class segment.

North America Holds the Largest Share

Fortified wines are some of the fastest-growing varieties of alcoholic beverage in the United States market, as they offer customers with additional unique options and choices. The emergence of single-spirit bars has also prompted the growth of fortified wines in the country. The popularity of antique fortified wines, such as sherry and port, is particularly evident in such bars. The low product awareness of newly introduced and tweaked versions of fortified wines has been impeding the growth. Companies have embarked on higher brand recognition through aggressive branding campaigns and social media promotions. Fortified wine has been also considered as an ideal cocktail ingredient. The bartenders have reported that port, vermouth, and sherry offer many characteristics that make them attractive for mixing. Additionally, these wines exhibit enough natural sweetness to replace the simple syrup commonly used in cocktails. Sherry fortified wines have seen a significant revival in the United States over the past five years. The demand for Portugal’s authentic style of fortified wines is particularly evident. The other categories, such as Madeira, have also witnessed decent growth in the US market. The food service channels, such as restaurants and hotels, are increasingly finding enticing ways to add Madeira with all courses of the meal.

Competitive Landscape

The wine market is a highly competitive market due to a large number of global and domestic companies operating in various countries.The growing demand for new and unique flavors has led to intense innovation from the key players in order to meet the changing tastes and demand of the consumers. Some of the key players operating in fortified wine market include: Liberty Wines Limited, Backsberg,Contratto, Taylor's Port, Albina & Hanna ,Vinbros,Mazuran's Vineyards Limited,Lombardo winery,Sogevinus Fine Wines SL Kopke.

As every region has a number of domestic players with robust distribution channels, global players seeking a higher market share prefer acquiring them rather than starting fresh in the country. New product development is another strategy followed by companies, as product differentiation helps in increasing the consumer base.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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