Fortified Wine Market Projected To Exhibit Robust CAGR of 12.5% For The Forecast Period From 2022 To 2028: Grand View Research Inc.

 

The global fortified wine market size is expected to reach USD 31.5 Billion by 2028, registering a CAGR of 12.5% from 2022 to 2028, according to a new report by Grand View Research, Inc. Various health benefits and premiumization of wine products are the major driving factors of the market. Increasing demand for flavored wine products and various health benefits associated with the consumption of fortified wine will drive the industry's demand during the forecast period.

Furthermore, the pandemic of COVID-19 negatively affected the fortified wine market, owing to government-imposed lockdowns during the pandemic period. Moreover, the suspension or delay in raw material supply has significant ramifications for the global demand and supply chain for fortified wine.

The sherry segment is expected to expand with the fastest CAGR 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.

The internet retailing segment is expected to expand with a CAGR of more than 13.1% from 2022 to 2028 in the global market. The growth of internet retailing distribution channels is attributed to the availability of online platforms via shopping portals and mobile apps. It is also observed companies, distributors, and retailers are adopting the online platform to sell alcoholic products.

Europe dominated the market with a revenue share of more than 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.

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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. 

Fortified Wine Market Report Highlights

• Europe is expected to register the largest market share of more than 45% in 2021, owing to the increasing disposable income of the people
• Sherry segment is expected to witness the fastest expansion, with a CAGR of 13.4% from 2022 to 2028, owing to various health benefits offered by the product
• Liquor stores channel held the largest market share in 2021 and contributed more than 35% of the total revenue, as consumers prefer retail stores for purchasing wine products
• Asia Pacific is the fastest-growing fortified wine market and is expected to witness a CAGR of 13.1% from 2022 to 2028, owing to the rising awareness about the health benefits of consumption of fortified wine

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.

List of Key Players of Global Fortified Wine Market

• 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