Global Port Wine Market to Generate $1,378.3 Million by 2031 Owing to the Increasing Awareness Regarding Health Benefits of Port Wine

Port wine specifically refers to a Portuguese type of fortified wine produced in the Douro Valley of Portugal. Typically, port wine is red in color with a sweet taste; however, white, dry, and semi-dry varieties are also quite famous. Apart from Portugal, port-style wines are produced in Americas, Asia, other European countries also, but as per the regulating guidelines by European Union, only wines produced in Portugal are labelled as original “port” wine.

Forecast Analysis of the Market

In recent years, there has been an increase in awareness across the world regarding the benefits of consumption of port wine. This increased awareness is predicted to be the primary growth driver for the port wine market in the forecast period. Additionally, growing demand for premium drinks among consumers is anticipated to push the market forward. Along with this, development of product portfolio by major companies is projected to offer numerous growth and investment opportunities to the market in the analysis timeframe. However, the high cost of port wine is estimated to create hurdles in the full-fledged growth of the port wine market in the coming period.

Regionally, the port wine market in the Europe region is expected to be highly dominant by 2031. Presence of major wine producing and consuming countries such as Portugal, France, Spain, etc., in this region is expected to be the leading factor behind the growth of the market.

According to the report published by Research Dive, the global port wine market is expected to gather a revenue of $1,378.3 million by 2031 and grow at 7.5% CAGR in the 2022–2031 timeframe. Some prominent market players include Adriano Ramos Pinto, Precept Wine, Sula Vineyards, Calabria Family Wines, Quevedo, Symington Family Estates, The Fladgate Partnership, Quinta do Crasto, GrupoSogevinus Fine Wines, Davy & Co Limited, and many others.

COVID-19 Impact on the Market

The outbreak of the Covid-19 pandemic has had a massive negative effect on almost all industries and businesses across the world. The port wine market, too, faced a negative impact of the pandemic. The pandemic witnessed the shutdown of major wine producing companies due to disrupted supply of raw materials i.e., grapes which reduced the manufacturing of port wines. Moreover, the demand for port wine also declined during the pandemic. Both these factors contributed to the fall in the growth rate of the market.

Significant Market Developments

The significant companies operating in the industry are adopting numerous growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, thus helping the port wine market to flourish. For instance:

• In January 2021, Percept Wine, one of the biggest privately held wine producers in the world, announced that it was acquiring two major wine portfolios of E. & J. Gallo Winery (Gallo), viz., Sheffield Cellars and Fairbanks. This acquisition is expected to increase the footprint of Percept Wine substantially in the coming period.
   
• In September 2021, Reuben Coutinho and Tanishq Palekar, two youngsters from Goa, India, announced the launch of Vinho Fontainhas, a premium port wine brand. The newly launched port wine is produced using Isabella grapes cultivated in Maharashtra state. This new entrant in the port wine market is expected to give a tough competition to other market players in the industry.
   
• In September 2022, Abegoarioa Group, a Portuguese wine manufacturing company, announced the acquisition of Vidigal Wines, the manufacturer of famous Porta 6 wine. This acquisition is anticipated to put Abegoarioa in a leading position in the port wine industry.