The global port wine market size was valued at USD 942.02 million in 2021 and is predicted to reach at USD 1371.26 million by 2030, increasing at a CAGR of 4.26% from 2022 to 2030. It is a kind of fortified dessert wine because of its perspiration and pleasant flavour that is mostly produced in the Douhro valley in Portugal. Ruby and tawny are the two primary varieties of port wine. Only three years can be spent in cement as well as steel barrels to mature the fruity flavour of Ruby wine. This type of port wine is widely available because it is manufactured in large quantities. Tawny ports are aged in small batches in wooden barrels to provide a rich nut and dried fruit flavour. Many tawny ports are classified as "premium" because they can be matured for several years and hence have a more complex flavour.
There are few players in the port wine market outside of Europe, unlike in the beer and spirit industries where there are many players from around the world. As a result of this, the market for light alcohol is growing at a faster rate than the market for hard spirits because of the supposed health advantages of wine including reducing the risk of cardiovascular disease and stroke, enhancing the immune system, and regulating cholesterol levels. With the increasing accessibility and affordability of wine, people in lower middle-class households in emerging countries are getting more acquainted with it. In addition, consumers' desire for foreign wines has grown since more of them are becoming available at lower prices.
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The Rapidly Growing Demand for Premium Beverages Act as Market Driver
It is anticipated that increasing consumer knowledge regarding the positive effects that drinking port wine can have on the health of consumers would be the primary driver of expansion in the port wine market growth over the forecast time frame. Because port wines are made from fruits including cocoa and grapes, they provide a number of benefits to one's physical and mental health, including the promotion of weight loss, an improvement in heart beat rate, assistance in the reduction of stomach inflammation, and the development of strong mental health. These kinds of elements are expected to hasten the expansion of the size of the port wine market in the time period that was forecast. In addition, the preference of the younger generation for premium wines, both for their own use and as presents for their friends and family, is anticipated to foster the expansion of the port wine market growth over the course of the next few years.
Consumption Of Wine Is on The Rise, And Port Wine's Health Benefits Are Becoming More Well Known
While whiskey and beer sales have risen, wine sales have soared. According to international records for wines and spirits, wine consumption increased in 2021 in nations including Germany, Sweden and the United Kingdom. More than 35 liters of wine were consumed by each person in Portugal, Italy, as well as France in 2013. The coronavirus outbreak in Spain as well as the rest of Europe has led to an upsurge in the consumption of port wine. Port wine's popularity is on the rise due to its superior taste and health benefits, as well as the fact it is much less acidic compared to whiskey or beer. Tawny and ruby port wines, for example, have been introduced by manufacturers to provide consumers more options. There are a variety of port wines comes in multiple tastes such as blackberry and raspberry as well as cinnamon and caramel and chocolate. Many vineyards now allow customers to go on tours and see how the grapes are grown. Hopefully, it is going to help to build consumer confidence in wine.
Drinking red wine, which contains the heart-protective antioxidant resveratrol, is one way to raise health-conscious people's consciousness about the importance of leading healthy lives. Cancer, diabetes, as well as Alzheimer's disease can all be prevented using resveratrol's antioxidant and anti-inflammatory qualities. Resveratrol's anti-inflammatory properties make it an excellent treatment for arthritis as well as skin inflammation.
The Exorbitant Costs of Port Wines Is What Is Holding Back the Market
The high excise duty that is placed on port wines causes their prices to be quite high. It is anticipated that this factor will operate as a barrier to the expansion of the port wine market growth during the time period in question. Additionally, many societies do not think of wine as a beverage that is fit for human consumption, and as a result, they choose not to drink it. In the years coming ahead, it is anticipated that these factors will continue to operate as a brake on the increase of port wine's market share.
Major Companies' Efforts to Develop Their Product Portfolios to Open Opportunities
It is anticipated that growth in the port wine market growth will be driven in the future by enhancements to currently available port wine products as well as the introduction of new goods. The major market participants in the port wine industry have begun to concentrate their efforts on the creation of new goods and their subsequent launches in order to satisfy the growing demand for tasty port wines. It is projected that factors such as these would propel the growth of the port wine market size in the future by creating new and lucrative market opportunities.
The global port wine market is divided into different segments according to the Nature, Type, Distribution Channel, and Region (Geography).
By Nature, the global port wine market is segmented into Red and White. The market can be broken down into red wines and white wines according to their origin. The red port wine segment currently holds the largest share of the market and is anticipated to increase at the highest compound annual growth rate (CAGR) of 4.31% from 2022 till 2030. Because it is made by steeping grape skins, which include tannins and resveratrol, it is indeed rich in plant components, and these chemicals have been shown to have the potential to reduce the risk of developing cardiovascular disease. Therefore, growing awareness about the likes of these health advantages is driving the growth of the segment.
By Type, the global port wine market is segmented into Ruby, Tawny, and Vintage. In comparison to tawny as well as vintage port wines, the ruby port wine segment is more readily available and has a lower price point. During the time in question, it is anticipated that this sector would record a compound annual growth rate of 4.02%. The category of tawny wine is the one that is expanding at the quickest rate. The tawny wine is matured in smaller barrels, which allows the wine to oxidize, resulting in a wine that is rich in a flavor that is evocative of dried fruit as well nuts and has an aroma that is spicy. The younger demographic of consumers values quality over quantity and looks for products that offer value for their money; tawny wine is an excellent choice in this regard. As a result, the growth rate in this sector is significantly faster.
By Distribution Channel, the global port wine market is segmented into Online and Store-based. The market for distribution channels that are based in stores is being overtaken by the rapidly expanding market for online distribution channels. It is projected to expand at a growth rate of about 4.12% between the years 2022 and 2030. In addition, the use of internet platforms is gaining popularity even in non-metro areas. The widespread adoption of internet technology is another important element that is contributing to the expansion of the market sector. In addition, the convenience of access, the availability of shipping services, and the absence of complex transactional requirements are all anticipated to further propel the growth of the market during the time under consideration. The store-based channel segment is currently experiencing a decline, despite the fact that it is a time-honored approach to the distribution process that is, to a certain extent, still utilized by customers.
By Region or Geography, the global port wine market is segmented into North America, Europe, Asia-Pacific (APAC Region), Latin America, and Middle East & Africa (MEA). The port wine market is dominated by Europe and is projected to remain so for the foreseeable future, given the wine's origins are in Europe. Port wine is popular in countries like Spain, the United Kingdom, and France.
The global port wine market is segmented by geography into North America, Europe, Asia-Pacific (APAC Region), Latin America, and Middle East & Africa (MEA).
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Due to the fact that port wine originated in Europe, the European region now holds the largest share of the market and is anticipated to continue to hold this position during the period covered by the forecast. The United Kingdom, France, and Spain are only few of the countries that consume the most port wines. Additionally, because of the considerable output of grapes, particularly in Spain, this market is the greatest in the region.
Even though Germany has a long history of winemaking, the country is best known for the industrial commodities than for its emotional as well as agricultural products, like wine. Despite its well-deserved reputation as a beer-drinking nation, Germany ranks fourth in the world for exports of port wine. Due to current vogue, aromatic wines are very popular in Germany's wine market right now. Aesthetic whites and light roses, as well as sweet white wines, have never been considered "cool" by the younger generation of wine enthusiasts. As their confidence grows, so do their tastes in wine. Compared to other countries, Germans are more open to trying new wines from around the world. New World wines' dominant position in the port wine industry is being bolstered by increasing consumer sophistication when it comes to wine choices.
However, it is anticipated that Asia-Pacific region will be the region with the quickest growth with a CAGR of over 4.98% between the years 2022 and 2030. The fact that there is a sizable population in the area will also contribute to the increase in demand for the goods. In India, it is anticipated that the market will see a growth rate of above 10% throughout the period under consideration. As a result of the vast population base, which is present in countries like as China as well as India and accounts for roughly 35% of the world's total population, it is anticipated that market growth will be accelerated in the region.