The global Fortified Wine Market size is projected to reach a CAGR of 12.3% from 2023-2030.
Fortified wine is blended with various vintages and grapes. It is distilled with spirits like brandy to enhance its flavour and strength. Due to its high sweetness level, and tendency to be consumed after meals, it is often referred to as 'Dessert Wine'. This product has two main product variants, named dry wine and sweet wine, the production of which depends on the time addition of brandy. The cheaper the wine, the lesser time it has taken to distil with brandy. Also, fortified wine is widely consumed due to its nutritive properties.
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. 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.
On the other hand, 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.
The COVID-19 outbreak has affected the wine market globally. The lockdown situation has shut all the industries due to which production is affected. All the bars, restaurants, pubs, and liquor stores, in almost all countries, have been shut, disrupting the sales volume and frequency of the wine. Alcohol products do not come under the list of essential items made by the government amid the Corona pandemic, which has given a massive blow to the sales of alcohol. Also, trade activities are at a halt, again affecting the supply of wine and other alcoholic beverages.
The growth in the market is primarily driven by the rising demand for premium and luxury wines, increasing wine consumption across the globe, and growing demand for fortified wine in cocktails. Furthermore, the increase in online retailing and the extension of the supply network both drive this market. Along with these, there are growing consumer disposable incomes, enhanced standard of living, elevated consumption of alcoholic beverages, and enhanced food and beverage sectors. Moreover, the upgradation in manufacturing and innovation in flavour & taste are expected to grow the fortified wine market in the next years.
Europe to Dominate the Market
