The global fortified wine market is expected to grow at a CAGR of more than 4% during the forecast period, 2017-2021.
Technavio has announced its latest market research report on the global fortified wine market, under its alcoholic beverages portfolio. This market analysis discusses the major drivers and key emerging trends and offers an analysis of key vendors like BACARDÍ, E. & J. Gallo Winery, Gruppo Campari, and The Wine Group.
According to Manjunath Reddy, a lead analyst for alcoholic beverages research at Technavio, “Vendors in the market space are coming up with new products to cater to the increasing demands of consumers and to sustain themselves in the competitive market. For instance, González Byass launched a new sherry vermouth, in June 2016, which is based on a recipe from the 19th century. The product is claimed to be the only sherry vermouth available in the UK.”
The successful launch of new products help vendors of fortified wine to increase their revenue stream and their market shares. Furthermore, new product launches also make it possible to engage the interests of the consumers, thereby retaining existing customers and attracting new ones.
Increasing demand for wine in the US and China
The US is the leading consumer of wine in the world. The overall consumption and per capita consumption of wine in the US are increasing and are expected to continue during the forecast period. Furthermore, social acceptance of wine coupled with awareness about the various health benefits of wine are boosting its demand in the US. China was the second-largest consumer of high-priced wine after the US in 2013. China, including Hong Kong, is estimated to be the fifth-largest wine consuming country worldwide.
Emergence of private label brands
The emergence of private label brands is an upcoming trend that is anticipated to have an impact on the growth of the global fortified wine market during the forecast period. Retailers, especially grocery stores, perceive private labels as profitable options with 10%-15% higher margins than national brands. Private label wines are made exclusively for a single retailer and are sold under the retailer’s brand, not the winery’s brand. Major grocery retailers such as Tesco and Aldi have their own brands of wine and the penetration level of private labels in some European countries is more than 50%.
This research report includes an in-depth analysis and market shares and sizes of the sub-segments and geography. An analysis of the key companies, including their market shares, business overview, key financials, etc. is provided in this study. This market study also provides a detailed analysis of key drivers, challenges, and opportunities influencing this market.
Other related reports:
- Global Root Beer Market 2017-2021
- Craft Beer Market in Europe 2017-2021
- Global Sparkling Wine Market 2017-2021
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