Vermouth sales forecast to climb 3.2% by 2021

The global vermouth market is set to post a CAGR (compound annual growth rate) of 3.19% from 2017 to 2021, new data from Research & Markets shows.

Key drivers pushing growth include market premiumisation, a recovering global economy leading to greater disposable incomes, and a focus on packaging, researchers say.

“One trend in market is new packaging formats,” a Research & Markets analyst said.

“The launch of new and innovative packaging is an important trend emerging in the market, which will drive the growth of the market during the forecast period. A good packaging increases the shelf life of a product and provides a platform for the players to advertise their products. An attractive packaging also helps to garner the attention of consumers.”

Research & Markets cites recent designs from Turmeon, featuring animated labels, and Zarro, which made use of a more slender bottle shape, as key examples.

Risks faced by the vermouth category broadly overlap with challenges faced by wine, including natural disasters and poor weather.

“Such calamities may contaminate and negatively affect the supply of raw materials,” the analyst continues.

“Such incidences can also increase the price of raw materials, which in turn, increases the manufacturing and processing costs of vermouth and wine products. Also, players operating in this market rely on many suppliers in various locations, and they have to incur huge losses if natural disasters affect their suppliers.”

The value of the global vermouth market is estimated to reach US$18.79bn, with Europe, Middle East and Africa accounting for more than 65% of sales, Technavio figures show.

In April year a consortium of vermouth producers formally established the Vermouth di Torino Institute, shortly after announcing a geographical indication (GI) had been secured for Vermouth di Torino.