The niche market for wines that includes wine Varities such as fortified wine and sparkling wine is witnessing a steady growth around the globe. The wine which is fortified with distilled spirits, usually brandy, to arrest fermentation and prevent it from spoilage is called as the fortified wine. Depending on the time addition of brandy, there are two main product variants in the fortified wine- sweet wine and dry wine. Growing trend of alcohol consumption in developing countries is expected to drive the growth of the fortified wine market. Fortified wine market has met many obstacles in its growth since its invention and introduction in the Europe, but today, the demand from consumers signifies substantial growth for the market in the forecast period.
Fortified wine Market: Segmentation
The fortified wine market can be segmented on the basis of nature, type and distribution channel.
On the basis of nature, the fortified wine market can be segmented as dry wine and sweet wine.
On the basis of type, the fortified wine market can be segmented as port, sherry, Marsala, Madeira and others. The sherry is a fortified wine which is available as dry wine. The other types of wine may be available as sweet or dry
On the basis of distribution channel, the fortified wine market can be segmented as store-based retailing and online retail. The store based retailing can be further segmented as modern grocery retail and traditional grocery retail. The modern grocery retail can be segmented as hypermarkets/supermarkets, convenience stores and discount stores. The traditional grocery retailing can be further segmented as specialty stores, liquor stores and others.
Fortified Wine Market: Drivers, Restraints, and Trends
The fortified wine market is especially driven by the growing trend of alcohol consumption in developing countries. The growth of the fortified wine market is also affected by seasonal variations, owing to the production of grapes. Consequently, the prices of grapes also affect the prices of the fortified wines. Macro-economic factors like improved disposable income is also boosting the growth of the fortified wine market in developing countries. The average selling price of fortified wines in common retail outlets is about US$ 75 per liter. The major factors driving the growth of the fortified wine market are consumption of the product as an end-of-meal drink, pairing it with a specific cuisine or the purchase of the product as a gift. Port wine forms the highest share in the fortified wine market, followed by dry sherry. The demand side factor like the preference of consumers for dry or sweet wine also affects the segment growth of the fortified wine market. Strategic marketing and promotion of the product to raise consumer awareness, especially outside Europe, is of utmost importance for the growth of the fortified wine market. In many regions, the growth of the fortified wine market is retarded due to the fact that the image and knowledge about fortified wines are unclear and many times the taste is also regarded as poor and unacceptable, and hence, educational marketing about fortified wines may also help to boost the growth of the fortified wine market.
Fortified Wine Market: Regional Outlook
In North America, fortified wine is consumed mostly as an end-of-meal drink on special occasions. However, consumers are still consuming traditional alcoholic end-of-meals beverages due to lack of awareness about fortified wines. Raising awareness about the product is likely to boost the growth of the fortified wine market in this region. In Europe, the fortified wine market is a traditional and age-old market and is already in the maturity phase. Hence a very slow growth can be expected in this region. Sherry is often used in cooking and also paired with food in Latin America, which acts as a driving factor for the growth of the fortified wine market in this region. In Asia Pacific, the fortified wine market is a naïve market and factors like raising consumer awareness along with an expansion of retail outlets could boost the growth of the fortified wine market here. In the Middle East, rising tourism and frequent consumption of niche varieties of alcoholic beverages is indirectly expected to boost the growth of the fortified wine market.
Fortified Wine Market: Key Players
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Regional analysis for Fortified Wine Market includes: