Market Trends of Fortified Wine Industry
Increasing Demand for Premiumization Alcohol
- The fortified wine market is being driven by growing demand for product innovations, including new flavor varieties. As consumer tastes and preferences evolve, wine producers are introducing new and exotic flavors of fortified wine to cater to these changing demands. This trend is expected to continue as producers seek to differentiate their products and capture new market share.
- Regarding the legalization of marijuana in some states of the United States, there has been a trend of some market players infusing fortified wine with marijuana to create a new type of product. Premiumization is expected further to fuel the growth of the fortified wine market. Consumers' perceptions of premium fortified wines are generally positive, as they are often associated with higher quality, unique flavors, and a more sophisticated drinking experience. As a result, many consumers are willing to pay a premium price for these products, which has contributed to the market's growth.
- Additionally, the consumption of wine and other alcoholic beverages is increased in casual gatherings, parties, and celebrations, so the demand for different types of wines is increasing among consumers. In April 2021, Bacardi India launched Martini Fiero, a contemporary vermouth that contains the taste of Martini white wine with the addition of flavors like citrus, bittersweet orange, and wormwood.
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North America Holds the Largest Share
- Fortified wines are some of the fastest-growing varieties of alcoholic beverages in the United States market, as they offer customers additional unique options and choices. The emergence of single-spirit bars has also prompted the growth of fortified wines in the country. The popularity of antique fortified wines, such as sherry and port, is particularly evident in such bars. Companies have embarked on higher brand recognition through aggressive branding campaigns and social media promotions.
- Fortified wines are often used in cocktails due to their unique flavors and higher alcohol content. They can add depth and complexity to a cocktail, as well as sweetness and body. Some popular fortified wines used in cocktails include vermouth, sherry, and port. In addition, fortified wines are also being used more frequently in the food service industry. Chefs and mixologists are discovering new and creative ways to incorporate fortified wines into their dishes and drinks, using them to add flavor and balance to a wide range of dishes and cocktails.
- As a result, market players are taking note of the growing consumer demand for fortified wines and are launching new products to meet this demand. This trend is expected to continue as consumers become more interested in unique and sophisticated flavor profiles and as the food service industry continues to experiment with new ways to incorporate fortified wines into their menus.
- For instance, in September 2022, Glenfiddich launched Glenfiddich 12-Year-Old Sherry Cask Finish, a vibrant single malt matured in traditional American and European Oak casks before finishing in rare Amontillado Sherry casks for a distinctively rich and refined taste.
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