LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global fortified wine market to grow at a CAGR of more than 4% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global fortified wine market for 2017-2021. The report also lists vermouth, port wine, and sherry as the three major segments, of which vermouth dominated the market with over 58% in 2016.
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global fortified wine market:
- Premiumization
- Increasing demand for new flavors in fortified wines
- New product launches
Premiumization
One of the drivers of the global fortified wine market is product premiumization. Most consumers perceive that premium products use high-quality ingredients, and hence the quality of such products is deemed higher than regular products.
“The turnaround of the global economy has increased the disposable income of consumers, thereby increasing their demand for premium products,” says Manjunath Reddy, a lead analyst at Technavio for alcoholic beverages research.
To cater to this demand for premium products, most well-established players in this space focus on launching new premium products. For instance, in December 2015, EMILIO LUSTAU launched its premium red sherry vermouth line. This vermouth is based on two sherry wines, which are aged separately in their soleras for 10 years. In December 2015, the Cinzano brand of Davide Campari-Milano launched its premium vermouth line, Cinzano 1757. This line-up comprises three variants, namely, Rosso, Bianco, and Dry.
Increasing demand for new flavors in fortified wines
The increasing demand for new flavors in fortified wines is another growth driver for the global fortified wine market. The players in the market are coming up with new flavors for fortified wines to meet the changing demands of their customers. The taste preferences of consumers change rapidly, and the demand for new and exotic flavors in fortified wines is high. In 2016, McWilliam's Wines launched a new range of flavored fortified wines. The new line consists of three products: McWilliam’s Strawberry Delight, McWilliam’s Spice Royale, and McWilliam’s Espresso Press. Wines infused with marijuana are becoming popular among consumers in the US as the product is legal in the country.
New product launches
“New product launches also drive the growth of global fortified wine market. The players in the market are coming up with new products to cater to the increasing demands of consumers and to sustain themselves in the competitive market,” says Manjunath.
The successful new product launches help the players to increase their revenue stream and their market shares. Also, new product launches help to keep alive the interest of the consumers. In June 2016, González Byass launched a new sherry vermouth, which is based on a recipe from the 19th century. The product is claimed to be the only sherry vermouth available in the UK. In June 2015, Martini launched its new vermouth under the brand name Martini Riserva Speciale, and the new product line comprises two products, namely, Martini Riserva Speciale Rubino and Martini Riserva Speciale Ambrato
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