Global Port Wine Market by Type (Twany, Ruby, and Others), Sales Channel (Offline and Online) and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2022-2031

Global Port Wine Market Analysis

The Global Port Wine Market Size is estimated to generate a revenue of $ 1,378.3 million by 2031, increasing from $ 682.5 million in 2021, at a noteworthy CAGR of 7.5%.

Market Synopsis

Increased demand for premium drinks among consumers due to variations in taste palette is likely to drive the port wine market during the forecast period. Tawny port is a preferred fortified wine that has a light and fragrant nutty flavor and oxidized quality. Tawny port is a great dessert wine as it has a sweet and rich flavor. Tawny port wines are aged for several years in wooden barrels at an optimum temperature, which provides the beverage with a distinct flavor and texture, altogether. Premiumization is increasing due to customers' desire to obtain the fame and recognition that premium brands represent. Furthermore, 89% of U.S. consumers regard port wines as an affordable luxury.

However, lack of knowledge about the beneficial health effects of consuming port wine among people is expected to restrain the port wine market growth. Most people think that wine consumption is harmful for their health and against their religion.

Wine consumption and gifting to friends & colleagues have increased greatly in the past few years owing to which the market for Port wine has grown considerably. Furthermore, the entry of wine into the corporate culture for several occasions is likely to contribute further to port wine market share growth.

According to regional analysis, the Europe port wine market accounted for the highest market share in 2021. Regarding wine consumption in the EU, consumers are becoming more interested in premium wines with geographical indication protection, rosé & sparkling wines, and wines made with ecologically friendly methods. The demand for wines with reduced alcohol content as well as varietal wine products, which are wines created primarily from one grape variety, is rising in the EU.

Port Wine Overview

Port wines have become a popular drink among millennial due to its high antioxidant content which helps to improve their health and wellbeing. Port wine is a fortified wine that is a native wine of Portugal. Since port wines are forfeited, more grape spirits are added to the blend during processing to raise the alcohol content, giving it a substantially greater alcohol content than other wines. Port wine can be divided into a number of distinct categories according to how long it has been aged. This type of wine is a sweet wine which is usually consumed as a dessert wine. These wines are also a great choice for gifting to friends and relatives on various festivals such as Thanksgiving and Christmas.

COVID-19 Impact on the Global Port Wine Market

The COVID-19  pandemic slowed the market expansion of port wine. The demand and production of port wine decreased as a result of the terrible effects of the COVID-19 pandemic on the health and wellness of people around the world. The wine manufacturing businesses were shut down entirely since wine was not seen as a necessary good. Moreover, some new entrant companies in the wine market were also completely shut due to heavy losses and financial crunches during the pandemic period. In addition, due to the widespread limitations and lockdown that were implemented to contain the spread of corona virus transmission and the predominance of serious symptoms, the supply of raw materials such grapes to the industries and the export of port wine to other regions were restricted. This aspect slowed the expansion of the port wine market during the pandemic.

Rise in Awareness about the Benefits of Consuming Port Wine to Drive the Market Growth

Rise in awareness about the benefits of consuming port wine on health of the consumers is expected to drive the port wine market growth during the forecast period. Port wines offer various health advantages such as it helps in weight loss, improves heart beat rate, and develops strong mental health as it is made up of fruits such as cocoa and grapes. Such factors are likely to speed up the growth of the port wine market size during the forecast period. Port wine offers a unique nutty and spicy flavor owing to the constantly evolving taste buds of the consumers. Moreover, the inclination of young generation toward premium drinks, both for consuming and gifting to friends & relatives is likely to augment the port wine market growth in the next few years.

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High Cost of Port Wine to Restrain the Market Growth

Owing to the high excise duty that is levied on port wines, they are quite expensive and not affordable for some people. This aspect is probably going to limit the growth in port wine market during the forecast period. In addition, many communities opt to avoid consuming wine since they do not view it as a good drink to consume. In addition, port wine has a high alcohol content (20% more than other wines), which discourages many from drinking it. It is further projected that these reasons limit the expansion of port wine market share during the forecast period.

Development of Product Portfolio by Major Companies to Offer Excellent Opportunities

Port wine has gained more popularity internationally. The wine is much appreciated by the Portuguese not only due to its distinct and appreciable taste, however also due to its cultural significance. Thus, rising western culture influence among people and the incorporation of wine in their routine and also on special occasions is expected to drive market growth in the future. Furthermore, constant adoption of new strategies such as product launches by the manufacturing companies in port wine market are expected to drive the Port Wine market growth in future. Major market players in the port wine market have started focusing on developing and launching new products to meet the rising demand for flavorful port wines. Such factors are anticipated to drive the port wine market growth during the forecast period.

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Global Port Wine Market, by Type

By type, the port wine market is fragmented into twany, ruby, and others. Twany port wine segment is projected to register both maximum revenue and the fastest growth.

Global Port Wine Market Share, by Type, 2021

Source: Research Dive Analysis

The twany port wine segment is expected to have the highest revenue in the global market. The port wines are aged in smaller barrels. This enables the wine to oxidize, giving it a "tawny" hue, a spicy, nearly leathery aroma, and a unique flavor, like that of dried fruits and nuts. The growth is attributed to rising demand of people for premium drinks with intense flavor. Tawny wine offers nutty and fruity flavor, which makes it a popular drink compared to other drinks. Moreover, tawny port wines are more preferred by people as a good gifting item to their friends and relatives on occasions such as wedding and festivals. Such factors are anticipated to generate a huge revenue in the port wine market.

Global Port Wine Market, by Sales Channel

By sales channel, the port wine market is bifurcated into offline and online. Offline segment is projected to generate maximum revenue and online segment is anticipated to generate fastest growth.

Global Port Wine Market Size, by Sales Channel, 2021

Source: Research Dive Analysis

The offline segment accounted for a dominant market share in 2021 owing to large number of shopping stores selling port wines across the world. Supermarkets/hypermarkets offer a sense of satisfaction of hand picking goods on their own. Moreover, the products are properly displayed on the shelves, which provide the people a better clarity about the product they wish to buy. In addition, people can instantly buy port wine of their choice on the spot. All these factors are likely to boost the market growth in the coming years.

The Online segment is anticipated to have the fastest market growth during the forecast period. The increase in the revenue of this segment linked to increasing preference of working professionals for online shopping by staying at one place. They can also save their time which is otherwise wasted on unnecessary travel. Furthermore, customers can get many offers and discounts on the products via online shopping. Such factors are likely to stimulate the market growth of Port Wine during the forecast period.

Global Port Wine Market, Regional Insights:

The Port Wine market has been analyzed across North America, Europe, Asia-Pacific, and LAMEA.

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The Market for Port Wine in Europe to be the Most Dominant

The Europe Port Wine market accounted for the highest market share in 2021. The growth is attributed to presence of major port wine producing and consuming countries such as Portugal, Spain, and France in this region. People in these countries are more inclined toward consumption of premium drinks as they are more health conscious and want intense flavored wine. Such factors are further anticipated to boost the market growth in the region.

Competitive Scenario in the Global Port Wine Market

Product launches and acquisitions are common strategies followed by major market players.

The companies involved in the Port Wine market are Adriano Ramos Pinto, Calabria Family Wines, Davy & Co Limited, GrupoSogevinus Fine Wines, Precept Wine, Quevedo, Quinta do Crasto, Sula Vineyards, Symington Family Estates, and The Fladgate Partnership.