Vermouth and other flavoured wine market in Europe

Earlier Report Observations

The European vermouth and flavoured wine market maintained relative stability between 2018 and 2019, with volume hovering around 264 million litres. This period was underpinned by the formal approval of the 'Vermut di Torino' production disciplinary in 2017, which established clear rules for Piedmont-based manufacturing, ingredient sourcing, and labelling, enhancing product quality and consumer confidence. Simultaneously, growing interest in artisanal and premium vermouth, with approximately 35% of new products targeting upscale consumers, stimulated demand in high-end bars and hotels. The COVID-19 pandemic in 2020 altered consumption habits, boosting at-home consumption, but the widespread closure of hospitality venues contributed to an overall market contraction to 239.5 million litres.

A pronounced recovery occurred in 2021, lifting market volume to 274.6 million litres. This resurgence was driven by the development of innovative segments, including semi-sweet vermouths and products featuring distinctive regional botanicals, coupled with a greater focus on sustainable and organic production practices. However, the market entered a declining phase thereafter, falling to 232.0 million litres in 2022 and 207.2 million litres in 2023. These years saw market consolidation around premium artisanal offerings, supported by the strengthening of protected geographical indications (IGP) like Vermouth di Torino. The adoption of new production techniques for lower-alcohol wines, utilizing early-harvested grapes, also responded to growing health-conscious trends.

In 2024, regulatory developments such as the INAO committee's authorisation to de-alcoholise IGP wines up to 6 degrees began influencing the flavoured wine segment. The turnover of Vermouth di Torino showed significant growth, estimated at €172 million, fueled by the product's rediscovery and its versatility in home consumption and cocktails. The increased presence of large international groups in the French spirits market affected distribution dynamics, while consumer preferences continued shifting towards complex flavour profiles, local herbal ingredients, and reduced sugar content.

Production vermouth and other flavoured wine in Europe

In kind, 2017-2020, M l

Top producers of vermouth and other flavoured wine, 2017-2020

World map of production of vermouth and other flavoured wine, 2017-2020

In 2020, Europe produced 296.9 million liters of vermouth and other flavored wine, showing no significant change from 2019. Production decreased by 9.5% between 2017 and 2020, which translates to an annualized decline of 3.3%. The lowest production level was recorded in 2018 at 296.3 million liters. The largest annual decline occurred in 2018 at 9.7%, while the largest increase was in 2019 at 0.8%.

Annual dynamics of production in Europe in kind, 2017-2020, M l

In value, 2017-2020, M $ US

In 2020, the output value of vermouth and other flavored wine in Europe was 922 million US dollars, marking a 10.6% decrease compared to 2019. Between 2017 and 2020, production value fell by 38.7%, equivalent to an annualized decline of 15.0%. The largest annual decrease was recorded in 2018 at 31.6%, and the largest increase was in 2019 at 0.4%.

Annual dynamics of production in Europe in value, 2017-2020, M $ US

Exports vermouth and other flavoured wine from Europe

Exports in kind, M l

Exports of vermouth and other flavored wine from Europe increased for the third consecutive year. In 2020, export volume reached 161.7 million liters, representing an 18.5% gain over the previous year. From 2017 to 2020, exports grew by 77.6%, with a compound annual growth rate (CAGR) of 21.1%.

Annual dynamics of product's exports from Europe in kind, 2017-2020, M l

Data from 2017 to 2020 show that exports of vermouth and other flavored wine from Europe were not heavily concentrated on a few key destinations. The United States accounted for 10.1% of exports in volume, Japan for 2.0%, and Switzerland for 1.8%. Together, these three countries made up only 13.9% of total export flows, indicating a diversified market.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Europe in kind, 2017-2020

Exports in value, M $ US

Exports of vermouth and other flavored wine from Europe increased for the third consecutive year. In 2020, export value amounted to 502.2 million US dollars, showing a modest gain of 6.5% compared to the previous year. Between 2017 and 2020, exports grew by 20.4%, equating to an annualized rate of 6.4%.

Annual dynamics of product's exports from Europe in value, 2017-2020, M $ US

From 2017 to 2020, the United States was the largest buyer of vermouth and other flavored wine from Europe in value terms, accounting for 13.8% of exports. Japan followed with 2.3%, and Canada with 1.9%. However, their combined contribution was limited to 18.0% of total export value, reflecting a diversified country structure.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Europe in value, 2017-2020

Imports vermouth and other flavoured wine to Europe

Imports in kind, M l

After a two-year decline, imports of vermouth and other flavored wine into Europe increased. In 2020, Europe imported 104.6 million liters, representing a 1.8% uptick from the previous year. The lowest import volume was recorded in 2019 at 102.8 million liters. The largest annual decline occurred in 2018 at 0.5%.

Annual dynamics of product's imports to Europe in kind, 2017-2020, M l

From 2017 to 2020, the key suppliers of vermouth and other flavored wine to Europe were the United States and Australia. Their combined share reached 3.9% of total imports in volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Europe in kind, 2017-2020

Imports in value, M $ US

After a two-year increase, Europe's imports of vermouth and other flavored wine declined in value. In 2020, imports totaled 390.6 million US dollars, indicating a decrease of 0.9% from a year earlier. The highest import value was recorded in 2019 at 394.2 million US dollars, with the largest annual increase also in 2019 at 1.7%.

Annual dynamics of product's imports to Europe in value, 2017-2020, M $ US

Over the period 2017 to 2020, the United States was the main source for imports of vermouth and other flavored wine to Europe in value terms, accounting for 2.7% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Europe in value, 2017-2020