The vermouth market is anticipated to witness extensive growth across the forecast period of 2017-2025, owing to the preference of many individuals for alcoholic beverages. The advantages of vermouth over traditional alcohol choices such as gin or vodka will serve as a significant factor for the growth of the vermouth market.
- Vermouth comprises less alcohol content as compared to traditional drinks. Vermouth contains around 18 percent alcohol by volume, while standard alcohol drinks contain nearly 40 percent of alcohol by volume. This factor proves fruitful for those who consume alcohol in moderate amounts and the Gen-Z category who prefer good taste with less intoxication. Thus, all these prospects bode well for the growth of the vermouth market.
- Research and development activities have a major part in the growth of the vermouth market. The players in the vermouth market invest heavily in these activities. New flavors and ingredients can be discovered through these activities. The discoveries and formulations ultimately result in an increase in the revenue of the players in the vermouth market, eventually propelling the growth rate.
- Mergers and acquisitions also play a crucial role in the growth of the vermouth market. These activities strengthen the foothold of the players in the vermouth market and help in accelerating the growth cycle of the vermouth market.
The vermouth wines are sweet aperitif wines and are similar to the sweet Cinzano or Martini. Vermouth are served chilled at 7 to 10 degrees Celsius as appetite stimulant before meals. Vermouth contain 17 to 19 percent alcohol and 7 to 9 percent sugar. The production of vermouth involves making a suitable fortified base wine and infusing herbs into it. The addition of herbs in vermouth, such as, wormwood, oregano, elecampagne, blessed thistle, dried tonka beans, dried woodruff, balm leaf, yarrow, European centaury, gentian root, dried orange, peel, angelica root, camomile flowers, quinnine bark, American saffron, majoram, rosemary, sage, summer savory, sweet basil, thyme and other increases the content of phenols, aldehyde and ester. Sweet vermouth with 15% ethanol is found to be best drink in France. The vermouth market has become mature in Europe, especially in Germany, France, and Italy. However, the North America region is the most potential market for wine manufacturers and is growing at a rapid rate. The vermouth wines are produced in Russia and Poland.
The increase in marketing and promotional activities as one of the primary factors that will fuel the growth of vermouth market.
Vermouth Market: Segmentation:
Global market of vermouth can be segmented on the basis of product type, end use, packaging, distribution channel and geography.
On the basis of product type, vermouth can be segmented into dry, sweet and white vermouth. Due to increasing demands and competition, vermouth manufacturers have created additional styles, including Extra-Dry white, Sweet White (Bianco), Red, Amber (Ambre or Rosso), and Rosé.
On the basis of end use, vermouth market is segmented into HoReCa, beverage industry and food industry. The beverage industry holds maximum share of market compare to others.
On the basis of packaging, vermouth can be segmented into glass bottles, plastic bottles, and others. Glass bottles are preferred option for packaging and more than 90% of vermouth wine comes in glass bottle.
Vermouth wine market is further segmented on the basis of distribution channel into direct and indirect channel. Indirect channel is further segmented into modern trade, specialty stores, convenience stores, commercial, hotels/restaurants/bars, online retailers, and other retailing formats. Of them, specialty stores segment is estimated to hold more than 25% of the market by the end of 2017.
Vermouth Market: Regional Outlook
Depending on the geographic regions global vermouth market is segmented into five key regions: North America, Latin America, Europe, APAC and MEA.
Europe is the leading consumer of the vermouth wines and exports mostly to the American.
Asia Pacific vermouth market is expected to grow during the forecast period because consumers are hanging lifestyles, influence of social media, and increasing trend of entertainment at clubs, lounges is driving sales of alcoholic beverages. Middle East and Africa is also expected to grow during the forecast period.
The recent trend due to increasing urbanization and a growing middle-class population with disposable incomes will drive the market.
Vermouth Market: Drivers, Restraints, and Trends
The increasing demand for new flavors in fortified wines is another growth driver for the global Vermouth 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 are changing rapidly, and the demand for new and exotic flavors in fortified wines is high. In 2015, Martini, a global brand, launched a new range of flavored fortified wine. Wines infused with marijuana are becoming popular among consumers in the US as the product is legal in the country.
Heavy taxation and legal regulations by governments and availability of other substitutes for wine is expected to hinder the growth of the market. The growing popularity of craft beer and spirits are also a major restraining factor.
Vermouth Market: Key Players
Key global market players producing Vermouth wine include Atsby Vermouth, ANCHOR DISTILLING COMPANY, Belsazar, FRATELLI BRANCA DISTILLERIE SRL(Carpano), Cinzano, Giulio Cocchi Spumanti Srl, Contratto, F.LLI GANCIA & C. SpA - CANELLI (Asti – ITALY), Imbue, LA QUINTINYE VERMOUTH ROYAL, MARTINEZ LACUESTA, Lo-Fi Aperitifs, Napa, CA., Lustau, MAiDENii, MANCINO VERMOUTH, MARTINI, Noilly Prat, Ransom, Regal Rogue, RISERVA CARLO ALBERTO, Distillerie des Alpes, STOCK SRL, sutton cellars, UNCOUTH VERMOUTH, Quady Wines and other.
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The following regional segments are covered comprehensively:
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4. Which regions might see the demand maturing in certain segments in near future?
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