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Wednesday, 1 April 2020

Introduction and Need of the Port Wine | Market Analysis and Trends

The name of this wine is rightly derived from the region from where it originated from- Porto of Portugal. The port wine is a type of sweet fortified manufactured by the process of arresting the growth halfway through the fermentation process and adding double distilled brandy or other spirits. It is mainly considered as a sweet wine. It is the most popular fortified wine next to sherry and the port wine market is steadily taking over the sherry market. Despite the decline in the wine market in many countries, port wine market is expected to exhibit a moderate growth over the forecast period due to consumer attraction towards newer varieties of alcohol.
Port wine Market: Segmentation
The port wine market can be segmented on the basis of nature, type and distribution channel.
On the basis of nature, the port wine market can be segmented as red wine and white wine. A newer variety of port wine called as the pink port is available. It contains a mixture of red and white wine
On the basis of type, the port wine market can be segmented as ruby, tawny, vintage and others. The others category mostly form the classic and reserves ports. Ruby is mostly consumed as a mixer drink, while tawny is consumed with cheese and has a nutty flavor. Both ruby and tawny ports are comparatively cheaper than the vintage port. The vintage port is made out of a better quality of grapes and also have tremendous aging potential, and hence, they are comparatively expensive.
On the basis of distribution channel, the port wine market can be segmented as store-based retailing and online retail. The store based retailing can be further segmented as modern grocery retail and traditional grocery retail. The modern grocery retail can be segmented as hypermarkets/supermarkets, convenience stores and discount stores. The traditional grocery retailing can be further segmented as specialty stores, liquor stores and others.
Port Wine Market: Drivers, Restraints, and Trends
The major factors affecting the growth of the port wine market are the alcohol trends amongst the consumers. Consumers are experimenting with different varieties of alcohol especially craft beer, whiskey and premium wines. The port wine is comparatively less acidic and this acts as a demand side driver for the port wine market as the consumers who prefer less acidic alcohols have shown a tendency to consume port wine. The wine market has shown a declining trend but the consumption of premium bottled wine has gone up, indicating the growth of the port wine market. As it is mostly consumed on special occasions, the decline in formal dinners may negatively affect the growth of the port wine market. Rising awareness about the unknown health benefits of port wine through communication technology and social media with regard to the presence of the antioxidant resveratrol, is also expected to boost the growth of the port wine market. Nowadays consumers are more apprehensive about the production process and origin of a particular alcohol, hence, educational marketing is a strategy to boost the growth of the port wine market.
Port Wine Market: Regional Outlook
In North America, fortified wine is consumed usually as an after-dinner drink on special occasions. However, many consumers regard it as a sweet drink and this demand side factor may affect the growth of the port wine market. In Europe, in countries like Portugal from where the port wine originates, the port wine market is a traditional and age-old market and is already in the maturity phase. Hence a very slow growth can be expected in this region. Port wine is often paired with cheese, fruits and nuts in Latin America, which acts as a driving factor for the growth of the port wine market in this region. A special variety of port called the rose port, also known as the pink port is especially popular amongst women and some consumers in Brazil, Canada and Denmark, and this trend is likely to fuel the growth of the port wine market. In Asia Pacific, the port wine market is a niche market and factors like raising consumer awareness along with an expansion of specialty retail outlets can boost the growth of the port wine market here. In the Middle East, rising tourism and their demand for premium bottled wines and frequent consumption of newer varieties of alcoholic beverages are indirectly expected to boost the growth of the port wine market.
Port Wine Market: Key Players
  • GRAHAM’S
  • Vinbros
  • Taylor’s Port
  • Mazuran’s Vineyards Limited
  • Sogrape Vinhos, S.A.
  • Fonseca Port Wine
  • The Wine Company PTY LTD
  • EMILIO HIDALGO SA

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