The global port wine market size was valued at USD 825.68 million in 2018 and is expected to witness a significant CAGR of 4.0% in the forecasted period. Increasing alcohol consumption is one of the major driving factors for the industry. Young consumers prefer to try different varieties of alcohol, such as whiskey, craft beer, and premium wines. In comparison to other alcoholic beverages, wines have less acidic content, which is also a major factor driving their demand.
The wine industry has witnessed a downfall even though the premium wine segment is seeing a significant development indicating the growth of the port wine market. Rising awareness about the health benefits of port wines and the presence of antioxidant resveratrol in these drinks will also drive the demand.
In present times, consumers are more conscious of the production process thus, wines are easier to understand as there is a large number of vineyards, which allow consumers to take a tour and understand the production process. This can also help boost the growth of the overall market. The manufacturers are coming up with various flavors, such as raspberry, blackberry, caramel, chocolate, and cinnamon, to bring innovation to the market.
The port wines have different segments as well based on the fermentation process as well as the age of the product. For instance, ruby wine is the most common of all and is aged for 2 years. The rarest port wine is a vintage wine, which is aged for 10 to 40 years. Companies also conduct auctions for vintage wines to gain popularity and create awareness about the product.
Based on nature, the market is segmented into red and white wines. The red wine segment has the maximum market share and is projected to expand at the fastest CAGR of 4.2% from 2019 to 2025. It can potentially lower the risk of heart disease as it is rich in plant compounds and is prepared from steeping grapes skins, which contain tannins and resveratrol. Thus, rising awareness about such health benefits is driving the segment growth.
The ruby port wine is widely available and costs less compared to tawny and vintage port wines. The segment is expected to witness a CAGR of 3.9% over the forecasted period. The tawny wine is the fastest-growing type segment. The tawny wine is aged in small barrels, which enable the wine to oxidize, hence have a spicy aroma, and is rich in a flavor reminiscent of dried fruit and nuts. The young consumer base prefers quality over quantity with cost-effective benefits and tawny wine is the perfect option. Thus, this segment is witnessing a faster growth rate.
The growing popularity of online distribution channels is outshining the store-based distribution channel market.
It is said to expand at a CAGR of more than 4% from 2019 to 2025. Moreover, online platforms are becoming popular even in non-metro. Extensive usage of the internet is also among the key factors driving the segment growth. Also, the ease of access, shipping services, and hassle-free transactions are further projected to boost segment development in the forecasted period. The store-based channel segment is witnessing a downfall, although being a traditional method for the distribution process, it is still being used by some consumers.
The European region dominates the market and is expected to maintain its position throughout the forecast years because the port wine has its origin in Europe. Countries like Spain, U.K., and France are among the top consumers of port wines. Moreover, the significant production of grapes, especially in Spain, makes it the largest regional market. On the other hand, Asia Pacific is projected to be the fastest-growing region with a CAGR of more than 5% from 2019 to 2025. The presence of a large population base in the region will also fuel the product demand. In India, the market is likely to witness a growth of more than 10% in the forecasted period. Countries, such as China and India, have 34% of the global population thus, the large population base is expected to boost the market growth in the region.
The AA Calem, C N Kopke Wineries, Cockburn Smiths & Companhia Lda wineries, Delaforce Sons & Companhia Wineries, Grupo Sogevinus SGPS SA Wineries, Martinez Gassiot, Vinhos SA, Offley, Forrester & Weber, Quinta do Crasto, and Ramos Pinto are the prominent companies in the market. The market witnesses a substantial entry barrier and the most significant of those is the land price. These wines are prepared with the special types of grapes and the production of grapes varies in different regions, thus, it also imposes a barrier for the new entrants. The market is further driven by product innovation and mergers and acquisitions.
The base year for estimation
Actual estimates/Historical data
2015 - 2017
2019 - 2025
Revenue in USD Million and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, and Rest of the World
U.S., Canada, Spain, the U.K., China, and South Africa
Revenue forecast, company share, competitive landscape, growth factors and trends
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This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Grand View Research has segmented the global port wine market report based on nature, type, distribution channel, and region:
Nature Outlook (Revenue, USD Million, 2015 - 2025)
Type Outlook (Revenue, USD Million, 2015 - 2025)
Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
Regional Outlook (Revenue, USD Million, 2015 - 2025)
Rest of the world
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