Port Wine Market is Segmented By Type(Tawny, Ruby, Vintage, Others), By Distribution Channel(Online, Offline), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
The Port Wine Market is growing at a high CAGR 2.5% during the forecast period (2024-2031). Port wine is a sweet fortified wine that originated in Portugal. Port wine is produced primarily from the blend of two or three grape varieties. It is made with aromatic grape varieties like touriga franca, touriga nacional, tinta barroca, tinto cão, and tinta roriz. Port wine is most commonly enjoyed as a dessert wine because of its sweetness. Rising consumer demand for low acidic wine and the presence of antioxidants which is helpful for brain health are some of the factors which are anticipated to grow the market.
Market Summary and Scope
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Metrics |
Details |
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Market CAGR |
2.5% |
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Segments Covered |
By Type, By Distribution Channel and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
Market Dynamics and Trends
Rising consumption of wine and increasing health awareness of port wine
The consumption of wine has increased more than that of whiskey and beer. According to international wines and spirit records, in some countries, such as Germany, Sweden, and the UK, wine consumption surged in 2020. Portugal, Italy, and France had the highest per capita consumption of wine at over 35 liters per person per year. The frequency of port wine consumption has increased significantly during the confinement caused by the coronavirus in Spain and the Rest of Europe. Factors such as better taste and health benefits and the fact that it is less acidic than whiskey or beer are creating a surge in demand for port wine. Manufacturers are introducing different types of port wine-like tawny and ruby to give consumers a bit more variety in terms of choice. Port wines available in different flavors such as blackberry, raspberry, cinnamon, caramel, and chocolate are blended with the product to increase its popularity. Many vineyards have started to allow consumers to take tours and observe the production processes. It is expected to contribute to gaining consumers' trust in wine consumption.
Rising awareness about health and wellness is becoming one of many factors encouraging individuals to adopt healthy lifestyles—the consumption of red wine help to prevent heart diseases, as it includes resveratrol. Resveratrol has antioxidant and anti-inflammatory properties to protect against diseases like cancer, diabetes, and Alzheimer's disease. The anti-inflammatory effects of resveratrol make it a good remedy for arthritis and skin inflammation.
Market Segmentation Analysis
Tawny port wine held largest market revenue share in the year 2022
Tawny segment is expected to be dominating segment in the year 2021. There is an increasing demand for tawny port wine is due to its sweet test and light red color. Tawny port wine has nutty and oxidative characteristics, which is one of the attractive factors for its rising demand. It is mostly preferred as after-dinner alcohol. Tawny Ports are aged in barrels for several years. The young age group prefers to buy high-quality wine with cost-effective port wine benefits; thereby, tawny is the perfect option. Also, tawny port wines are more preferred by people as a good gifting item to their friends and relatives on occasions like weddings and festivals. These factors are anticipated to generate revenue in the tawny port wine market.
Market Geographical Share
Europe is expected to dominate the global port wine market in the year 2021
Europe is the leading producer of wine. Consumers in Europe prefer to have it with their dinner, and it is a traditional drink for the Europeans. The global production and consumption of wine have increased in Europe over the last few years. Between 2016 and 2020, the average annual production was 165 million hectoliters. In 2020, it accounted for 45% of global wine-growing areas, 64% of production, and 48% of consumption. Major key players of port beer like Cave de Turckheim and Irache Bodegas are based in the Europe; they get raw materials at a reasonable price from the local area, which helps reduce the cost of transportation and helps to reduce the cost of wine production. In 2020, Italy was the leading European producer of wine with an output of approximately 49.1 million hectoliters, followed by France.
The Asia Pacific is the second-largest market for wine consumption in volume terms, driven primarily by China, Japan and South Korea. The increasing population of this region and per-capita income among individuals are some of the key factors that will lead to the market’s growth in the region. The respective markets in India and China are major regional revenue contributors. Countries such as China and India have 34% of the global population; thus, the large population base is expected to boost the market growth in the region.
Companies and Competitive Landscape
The global port wine market is fragmented. Some of the key players operating in the market include Adriano Ramos Pinto, Calabria Family Wines, Davy & Co Ltd; Grupo Sogevinus SGPS SA and Precept Wine, LLC among others. Market players are resorting to mergers and acquisitions to increase product offerings and strengthen their position in the industry. For instance, In April 2021, Calabria family wines acquired Mc william’s wines. In Jan 2021, Precept wine, the largest privately held wine producer in the Pacific Northwest and a top 12 American wine producer, announced the acquisition of the Sheffield Cellars and Fairbanks dessert wine portfolio from E. & J. Gallo Winery (Gallo). In Sept 2021, the Calabria family launched a new wine group after doubling its portfolio. Calabria family has relaunched its wine business, adding a new distribution wing, Vintners & Co Merchants, to manage a portfolio of grown brands. In Oct 2021, the historic port producer Ramos Pinto was releasing 100 limited edition bottles of very old tawny port, a blend of ramos pinto reserves with an average age of 100 years.
COVID-19 Impact on Port Wine Market
Negative impact on the global port wine market
The COVID-19 pandemic harmed the overall wine industry; as port wine is not considered an essential good, the wine manufacturing companies completely shut down during the pandemic. Due to the lockdown, supply chain is completely disturbed. Raw materials are not easily available to wine manufacturers. Export of the port wine is stopped due to the lockdown situation. The closure of the hospitality industry has resulted in a rippling effect among related industries regarding liquor, wine, and beer consumption. The shutdown of pubs, restaurants and bars resulted in decreased demand for alcoholic beverages and beer, harming the port wine market.
