Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Vermouth market.
Trusted Business Insights presents an updated and Latest Study on Vermouth Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Vermouth market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Vermouth Market
The global vermouth market size was valued at USD 7.6 billion in 2020. Increasing popularity of cocktails with low-alcohol and aromatized with herbs and spices is projected to expand the market scope. Moreover, the demand for such fortified alcoholic beverages is propelled by various consumer trends including shifting consumer preferences from conventional alcoholic beverages and improvement of economic indicators such as rising living standards and changing lifestyles.
Vermouth is composed of 75.0% of wine content, which is a base infused with alcohol and various botanicals including herbs, roots, spices, flowers, barks, and seeds in order to aromatize it. These fortified wine variants are commonly consumed as aperitif across the globe. Over the past few years, consumers are shifting towards alcoholic beverages such as various types of cocktails over traditional alcohol beverages including gin and brandy.
According to ˜Food and Drink Report 2018 – 2019 published by Waitrose and Partners, one in every five people in the U.K. owned a cocktail shaker. These cocktails are also popular as an aperitif among the consumers and are widely consumed in restaurants and hotels. These consumer trends are projected to promote the scope of vermouth over the next few years.
Various traditional alcohol beverages such as gin are expected to face tough competition as consumers prefer vermouth over other drinks. This type of cocktail consists of around 18.0% of Alcohol by Volume (ABV) compared to conventional alcohol drinks such as gin with around 40.0% of ABV. These features offer a huge advantage to consumers who drink moderately and the young generation who seek taste with low intoxication.
European countries such as Spain, France, and Italy are some of the most vermouth consuming countries in the world. People in Spain are consuming wine on a daily basis in order to enhance appetite and aid for proper digestion. Favorable trends in these large consuming countries are expected to witness high market growth over the forecast period 2021-2027.
Product Insights: Vermouth Market
Sweet vermouth was the largest product segment in the vermouth market in 2019. The segment accounted for a revenue share of more than 55.0% in 2019 and is expected to maintain its dominance over the forecast period. Owing to sweet taste and low-alcohol, young people and adults are finding it as one of the best alternatives for hard drinks such as gin and other spirits. People in Spain consider it as one of the most socially accepted alcoholic drinks. These trends lead to the higher consumption of sweet vermouth in the region.
Dry vermouth is expected to witness a CAGR of 6.7% from 2020 to 2027 on account of increasing demand for dry and extra-dry vermouth majorly is North America owing to its low sugar syrup content. Major players in the industry are offering new products in North America owing to increasing health consciousness among consumers coupled with shifting consumer preference for alcohol drinks.
Distribution Channel Insights: Vermouth Market
Off-trade distribution through retail market, wine shops, and wholesalers was the largest sales channel with a market share of more than 45.0% in 2019. Increasing consumer preference for vermouth as an appetizer and growing adoption of an off-trade distribution channel to purchase the wine is anticipated to drive the segment over forecast period. In addition, the segment is anticipated to witness substantial growth in developing nations on account of growing consumer buying power. Moreover, rising penetration among the large customer group in countries such as China, India, Brazil, Thailand, and Mexico with growing preference for low ABV content drinks over other alcoholic drinks such as gin is expected to compliment segment growth over the next few years.
The on-trade distribution is anticipated to be the fastest-growing segment with a CAGR of 6.7% from 2021 to 2027. This sales channel primarily attributes the sale of the product through pubs, bars, nightclubs, hotels, restaurants, and cafes (HoReCa) in the hospitality industry. With the increasing nightlife trend among the millennials and young generation is propelling the demand for the wine through an on-trade distribution channel. Low-alcohol is opening new scope for the wine in restaurants, pubs, and night clubs among young generation and adults.
Regional Insights: Vermouth Market
Europe was the largest market for vermouth and accounted for a share of more than 50.0% in 2018 owing to substantial consumption across the region. The product was first consumed in Italy and currently, Spain, France, and Italy are the largest vermouth consumers in the world.
North America is anticipated to be the fastest-growing region with a CAGR of 7.1% from 2020 to 2027 owing to increasing demand for dry vermouth, which has a less amount of sugar syrup. Moreover, the fortified wine is also gaining popularity as an aperitif among consumer in the region. The U.S. is the largest importer of ˜Red Noilly Prat Vermouth which is produced by Noilly Prat, a brand owned by Martini and Rossi.
Vermouth Market Share Insights: Vermouth Market
The market is slightly consolidated in nature owing to the presence of strong players with a large customer base across the globe. Features such as low-alcohol and great appetizer are propelling the market. Major manufacturers are adopting various market strategies including new product launch, merger and acquisition, and expansion of distribution channels, to capture the maximum market share and more customer penetration across the globe. For instance, in July 2019, El Bandarra, a brand known for craft vermouth launched a new product under the brand name ˜El Bandarra Vermut Rose in Barcelona, Spain. This product contains 30.0% less sugar and 15.0% ABV. These new product launches increase product visibility and are expected to fuel industry growth over the forecast period.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global vermouth market report on the basis of product, distribution channel, and region:
Product Outlook (Revenue, USD Million, 2016 – 2027)
- Dry Vermouth
- Sweet Vermouth
Distribution Channel Outlook (Revenue, USD Million, 2016 – 2027)
- Off Trade
- On Trade
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