GVR Report cover Fortified Wine Market Size, Share & Trends Report

Fortified Wine Market Size, Share & Trends Analysis Report By Product (Port Wine, Vermouth, Sherry), By Distribution Channel (Pub, Bars & Restaurants, Internet Retailing, Liquor Stores, Supermarkets), By Region, And Segment Forecasts, 2022 - 2028

  • Report ID: GVR-4-68039-929-2
  • Number of Pages: 80
  • Format: Electronic (PDF)

Report Overview

The global fortified wine market size was valued at USD 13.84 billion in 2021 and is expected to expand at 12.5% from 2022 to 2028. This can be credited to the health benefits offered and the premiumization of wine products. Moreover, technological advancement and development in the manufacturing and innovation in flavors are accelerating market growth over the upcoming years. The rising consumption and demand for alcoholic drinks in various special events are further supporting the industry's growth. The consumption of the product is considered social recognition, which in turn will drive the industry growth during the forecast timeline. In addition to this, various health benefits are associated with consumption of the fortified wine. These are the major driving factors for market growth. However, the increased taxation on wine in several nations and stringent government rules and regulations are hindering the growth of the market during the forecast period. 

U.S. fortified wine market size, by distribution channel, 2019 - 2028 (USD Billion)

Moreover, the increasing investment in R&D by various manufacturers to produce innovative products of fortified wine across the globe is creating opportunities for the market over the upcoming years. However, government guidelines in countries such as the U.S., Germany, U.K., China, and India are expected to maintain the quality of fortified wine products. Recently, the Food Safety and Standards Authority of India (FSSAI) has framed and notified the alcoholic beverages standard regulations 2018 for the manufacturing and labeling of wine.

The lockdown announced during the COVID-19 pandemic caused disruption in transportation and suspended the supply of raw materials for a certain time, and affected the manufacturing of the fortified wine. However, the rising awareness about health and promotion of the use of fortified wine after the COVID-19 pandemic has projected to witness a healthy market growth rate in the upcoming years.

Product Insights

The vermouth segment accounted for the largest market share of more than 65% in the global fortified wine market revenue in 2021 and is expected to expand at a CAGR of 12.4% from 2022 to 2028. The increasing use of vermouth wine as an antiseptic and medicinal drug to treat cold and viral diseases is expected to drive market growth. The rising demand for dessert wine from European countries like U.K., Germany, France, and Italy has projected market growth during the forecast period.

Global fortified wine market share, by product, 2021, (%)

The sherry segment is expected to expand with the fastest growth rate of 13.4% from 2022 to 2028. The increasing popularity of sherry wine among western consumers for a drink during dinner to keep the body warm has led to the upsurge of this segment. Various health benefits of sherry wine, such as maintaining cholesterol, and antioxidants, avoiding hypothermia, and many others, have projected the growth of this segment during the forecast period.

Distribution Channel Insights

The liquor stores contributed a share of more than 35% in the global fortified wine market in 2021. The increasing number of liquor stores across the globe is driving the market. Various manufacturers are selling their products through offline channels, which is propelling the growth of the segment. In addition to this, easy access to diverse products through stores is likely to drive the segment growth. Liquor stores are expected to remain dominant in the forecast period due to improved distribution channel networks across the globe.

The internet retailing segment of the fortified wine market is expected to register the fastest expansion, with a CAGR of 13.1% from 2022 to 2028. The rising adoption of the e-commerce sector among consumers, owing to the internet penetration rate, has witnessed lucrative growth in recent years. Several manufacturers are offering alcoholic products on their websites and on the e-commerce platforms, which, in turn, will drive the industry demand.

Regional Insights

Europe has the largest contribution to the global fortified wine market, with over 45% in 2021. The growing consumption of wine in countries like Germany, France, Italy, Spain, and Portugal is expected to drive the market in this region. In addition to this, the growing demand for flavored wine has projected market growth during the forecast period.

Asia Pacific is the fastest-growing fortified wine market and is expected to witness a CAGR of 13.1% from 2022 to 2028. China, India, and Japan have a huge consumer base for the consumption of alcoholic products, which will drive the regional demand. The rising awareness about the health benefits of consumption of fortified wine and the increasing disposable income of people are anticipating the regional growth.

Key Companies & Market Share Insights

The market is comprised of the presence of a large number of well-established players coupled with numerous domestic players, along with an existing strong distribution channel. Recently, on 15th June 2021, E. & J. Gallo Winery has announced that the company will build a new production facility and distribution center with USD 423 billion investment to support its long-term innovation plans and future business growth. Such innovations are expected to boost the adoption rate of the product among consumers. The producers are aggressively following organic as well as inorganic strategies to expand their footprints across the geography. Some of the key players operating in the global fortified wine market include:

  • 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 (Kopke)

  • Taylor's Port

  • Albina & Hanna 

Fortified Wine Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 15.1 Billion

Revenue forecast in 2028

USD 31.5 Billion

Growth Rate

CAGR of 12.5% from 2022 to 2028

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2028

Quantitative units

Revenue in USD Million/Billion and CAGR from 2022 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, Distribution Channel, and Region

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Germany, U.K., France, China, Japan, India, Brazil, and South Africa

Key companies profiled

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 (Kopke), Taylor's Port, and Albina & Hanna.

Customization scope

Free report customization (equivalent to up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the fortified wine market based on product, distribution channel, and region.

  • Product Outlook (Revenue, USD Million, 2017 - 2028)

    • Port wine

    • Vermouth

    • Sherry

    • Others

  • Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)

    • Pub, Bars & Restaurants

    • Internet Retailing

    • Liquor Stores

    • Supermarkets

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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