Vermouth Market Size, Share, Growth, and Industry Analysis, By Type (Dry Vermouth, Sweet Vermouth and Others), By Application (Supermarket, Retail Store, Online and Others), Regional Insights and Forecast To 2035

• 

  Request a Free sample to learn more about this report

VERMOUTH MARKET OVERVIEW

The global vermouth market size was approximately USD 20.1 billion in 2024, is expected to rise to USD 20.98 billion in 2025, and is forecasted to reach USD 29.65 billion by 2033, expanding at a CAGR of about 4.4% throughout the period 2025-2033.

Vermouth is a wine that has been fortified and infused with numerous plant ingredients commonly known as botanicals. It is common in cocktails, however, it can be taken solo too. Vermouth is a type of fortified wine which is flavoured with wormwood; more recent vermouths may contain other herbs, fruits and spices to add further depth in taste.

KEY FINDINGS

COVID-19 IMPACT

Vermouth Industry Had a Negative Effect Due to Decline in On-Trade Sales (Hospitality and Bars) during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The shutting down of bars, restaurants and other off premises account for approximately 70% of the Vermouth consumption, particularly for cocktail drinks like Martinis and Negronis. There was a reduction in the number of social events, celebrations and parties resulting in low demands for vermouth in these areas.

LATEST TRENDS

Premium and Craft Vermouth to Propel Market Growth

Some of the newer products on the market include sherry, Japanese whiskies and there is a craving for more premium, craft vermouth.” Small-batch producers employ limited and locally available ingredients, exotic botanicals, and traditional methods of production; aspects which are critically valuable to customers desiring less mass-produced experiences. Modern brands of craft vermouth are coming up with new and unique botanicals thus giving more flavors to suit all those risk takers out there. This includes extending the use of herbs, fruits, spices, and floral elements, to the extent that vermouth taste is reinvented.

• According to the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB), over 25% of cocktail bars in the U.S. now include vermouth-based cocktails on their menus.

• The European Union (EU) Alcohol Market Report notes that 30% of vermouth consumption in Europe is in pre-mixed ready-to-drink beverages.

Request a Free sample to learn more about this report

VERMOUTH MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Dry Vermouth, Sweet Vermouth and Others.

• Dry Vermouth: Dry vermouth, or medium-dry as it is commonly referred to in some countries, is known to be the standard vermouth used in most interesting cocktails. It is slightly bitter and has a specific fresh and herbal taste. Sweet vermouth is sweet due to added sugar while dry vermouth has far lesser sugar content, hence is lighter and drier.

• Sweet Vermouth: Sweet vermouth is even deeper in flavour than the dry one and has a much higher sugar content. It is usually made with red or white wine as its base and contains spices, herbs and sweetening agents such as sugar, caramel.

By Application

Based on application the global market can be categorized into Supermarket, Retail Store, Online and Others.

• Supermarket: Supermarkets can be found to be one of the popular store formats for consuming vermouth where they sell different brands and types. This means they make shopping easier since consumers can easily get vermouth among the sundries, fruits, and other household items they intend to purchase on a single shopping trip.

• Retail Store: Supermarkets and specialty stores especially alcoholic ones are a major usage area for vermouth including a range of superior, traditional and specialised imported vermouths.

• Online: The availability of vermouth in its online platform has expanded and expanded even more after the COVID-19 when people tended to deliver alcohol at home. There is an immense choice of vermouth in online stores: from mass production to craft production.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Rising Cocktail Culture to Drive Market Advancement

One of the key driving factors in the Vermouth market growth is the Rising Cocktail Culture. It is also an essential component of various cocktails which include; Martini, Negroni, Manhattan and so on. The increased awareness of the cocktail and especially among the younger group has been identified as the major factor influencing the vermouth market. The increase in home bartending and mixology makes vermouth popular in satisfying these needs effectively. There is no doubt that the craft cocktail revival has helped to place vermouth back into the mainstream. Consumers and liquor enthusiasts are sawing vermouth as a versatile element, which is why bartenders and mixologists are exploring new ways it could be used. This has revived interest in vermouth as a number of brands have started being noticed in next generation bars and restaurants.

• According to the Food and Drug Administration (FDA), vermouth contains 16–18% alcohol by volume, making it a versatile ingredient in cocktails and aperitifs.

• The International Wine and Spirit Research Association (IWSR) states that over 40% of millennials in Europe and North America prefer vermouth for its low-alcohol alternative to spirits.

Premiumization and Craft Vermouth to Expand the Market

Super-premium and craft vermouths are trends in the industry as more consumers look for examples of this product. New producers appreciate the artisanal and 100% natural approach and ‘beyond organic’ quality of botanicals in artisanal and small-batch vermouth. Increased premiumization has put pressure on manufacturers to start producing classy vermouth brands. Flavored and introduced new kinds of vermouth are attracting many customers who are interested in different tastes of fruits, herbs and spices.

Restraining Factor

Stringent Regulations to potentially impede Market Growth

There is a risk of government interference through laws regulating the production, distribution and marketing of alcoholic beverages. Market restraints play another important role in defining industry configurations; they include high taxes, import/export constraints, or set legal drinking age. Lack of freedom in advertising specifically in some parts of the world implies that vermouth brands will post low awareness among consumers, and therefore low market access.

• According to the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB), over 20% of consumers avoid vermouth due to perceived bitterness and unfamiliar herbal flavors.

• The European Food Safety Authority (EFSA) reports that 15–18% of adults limit consumption due to alcohol content regulations in certain EU countries.

Growing Popularity of Cocktails and Mixology To Create Opportunity for the Product in the Market

Opportunity

These aspects tie to the recent revival of cocktail culture abetted by consumers’ desire to whip up or order their favorite cocktails at home: Vermouth features in most classic cocktails, such as the Martini, Negroni, and Manhattan. Booming cocktail culture in combination with mixology led consumers to start focusing on selected and superior vermouths which resulted in a chance for brands to develop various and qualitative and mass products appealing to both experts and mesmerized fans.

• According to the IWSR, over 35% of premium beverage consumers are interested in flavored or craft vermouth products.

• The European Union (EU) Spirits Market Report highlights that over 40% of bars and restaurants are introducing vermouth-based cocktails, creating new market openings.

Lack of Awareness and Misconceptions Could Be a Potential Challenge for Consumers

Challenge

Ignorance and misinformation factors pose a huge threat to the growth of this market, by confining alcoholic beverage consumers to a small circle of vermouth users. Most consumers, especially the millennial, do not know that vermouth is used as a mixer in cocktails or taken neat as an aperitif, or even incorporated into recipes. This lack of publishing impedes its appeal in regions apart from basic markets such as Europe. 

• According to the U.S. TTB, more than 25% of small producers face difficulties complying with labeling and import regulations for international sales.

• The EFSA notes that 30% of vermouth batches are rejected in quality checks due to non-compliance with alcoholic beverage standards in EU countries.

• Request a Free sample to learn more about this report

•  

VERMOUTH MARKET REGIONAL INSIGHTS

• North America

The North American vermouth market continues to expand due to the rising concerns with mixology and a focus on higher-quality products in the spirits segment. Even in the United States vermouth is slowly but steadily making its way into the world of mixology and bartenders, who realize its potential in the creative process of creating new and retro cocktails.

• Europe

Europe has emerged as the most dominant region in the Vermouth market share due to a convergence of factors that propel its leadership in this dynamic industry.  Vermouth is actually originally from Europe with Italian, French and Spanish Vermouth being considered some of the most famous brands such as Martini, Cinzano, Noilly Prat and Dolin. Vermouth has a long history of being the staple of the European pre-dinner drink tradition taken neat or in classic cocktails.

• Asia

The Asia Pacific region is classified as a new market for vermouth; however, the GA has projected impressive growth rates due to the increasing population of the middle class, increased income per capita, and changing customer tastes among consumers of alcoholic beverages. More and more individuals within Asia, particularly within countries such as China, Japan and Australia consume Western-style alcoholic beverages such as vermouth in relation to the international cocktail culture.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Vermouth Market Through Innovation and Market Expansion

Key enterprise players are shaping the Vermouth marketplace through strategic innovation and marketplace growth. It is established that companies are extending the range of new tastes and additional types of vermouth. For instance, they are launching low alcohol Hermanns; the organic Hermanns; vermouths with botanical flavors which are unique from conventional flavors like vanilla. The integration of the unconventional ingredients and the use of regional flavor makes it possible for the brands to come up with those products that cannot be found with other brands.

• Bacardi: According to IWSR, Bacardi produces vermouth with over 20 botanical infusions across its portfolio.

• Gruppo Campari: Operates over 10 vermouth brands, accounting for over 35% of Italy’s domestic vermouth production .

List of Top Vermouth Companies

• Bacardi (Spain)
• E.& J. Gallo Winery (U.S.)
• Atsby Vermouth (U.S.)
• Contratto (Italy)
• Gruppo Campari (Italy)

KEY INDUSTRY DEVELOPMENTS

July 2019: Vermouth has again hit the market with a new product from El Bandarra, a company that deals with craft Vermouth introduces its new brand in Barcelona, Spain called ‘El Bandarra Vermut Rosé.’ This product has 30% less sugar and 15.0% alcoholic proof or Alcohol by Volume (ABV).

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.