Vermouth Market

The article provides an in-depth analysis of the global vermouth market from 2012 to 2022, including trends in consumption, production, imports, and exports. Key highlights include the forecasted CAGR for consumption and market volume, as well as insights into the top consuming, producing, importing, and exporting countries. China emerges as a dominant player in both consumption and production, while the United States leads in imports. Italy stands out as a major exporter of vermouth, with notable growth in export value.

Market Forecast

Driven by increasing demand for vermouth worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.2% for the period from 2022 to 2030, which is projected to bring the market volume to 2.2B litres by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.1% for the period from 2022 to 2030, which is projected to bring the market value to $8.8B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Vermouth

In 2022, consumption of vermouth decreased by -5.3% to 2B litres for the first time since 2017, thus ending a four-year rising trend. Overall, consumption, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2018 with an increase of 6%. Global consumption peaked at 2.1B litres in 2021, and then contracted in the following year.

The global vermouth market value shrank to $6.9B in 2022, which is down by -5.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.8% from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded in certain years. Global consumption peaked at $7.3B in 2021, and then dropped in the following year.

Consumption By Country

The country with the largest volume of vermouth consumption was China (537M litres), comprising approx. 26% of total volume. Moreover, vermouth consumption in China exceeded the figures recorded by the second-largest consumer, the United States (201M litres), threefold. India (190M litres) ranked third in terms of total consumption with a 9.4% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in China stood at -1.4%. In the other countries, the average annual rates were as follows: the United States (+2.0% per year) and India (+2.2% per year).

In value terms, China ($1.3B), the United States ($1.3B) and Bangladesh ($420M) appeared to be the countries with the highest levels of market value in 2022, together accounting for 44% of the global market. India, Mexico, Iran, Saudi Arabia, Germany, Pakistan, Ethiopia, Canada, Brazil and France lagged somewhat behind, together comprising a further 27%.

Among the main consuming countries, Mexico, with a CAGR of +7.0%, recorded the highest rates of growth with regard to market size over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of vermouth per capita consumption in 2022 were Germany (1,192 litres per 1000 persons), Saudi Arabia (1,061 litres per 1000 persons) and Canada (1,006 litres per 1000 persons).

From 2012 to 2022, the biggest increases were recorded for Saudi Arabia (with a CAGR of +6.8%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Vermouth

In 2022, global production of vermouth fell to 2B litres, dropping by -4.2% against 2021 figures. Overall, production, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 with an increase of 5.4%. Over the period under review, global production reached the maximum volume at 2.1B litres in 2021, and then reduced in the following year.

In value terms, vermouth production stood at $6.9B in 2022 estimated in export price. The total output value increased at an average annual rate of +2.2% from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being observed throughout the analyzed period. The pace of growth was the most pronounced in 2015 with an increase of 13%. Global production peaked in 2022 and is expected to retain growth in the near future.

Production By Country

The country with the largest volume of vermouth production was China (536M litres), comprising approx. 26% of total volume. Moreover, vermouth production in China exceeded the figures recorded by the second-largest producer, India (190M litres), threefold. The third position in this ranking was taken by the United States (158M litres), with a 7.8% share.

In China, vermouth production contracted by an average annual rate of -1.4% over the period from 2012-2022. In the other countries, the average annual rates were as follows: India (+2.2% per year) and the United States (+0.0% per year).

Imports

World Imports of Vermouth

In 2022, after four years of growth, there was significant decline in overseas purchases of vermouth, when their volume decreased by -6% to 304M litres. The total import volume increased at an average annual rate of +1.6% from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2021 when imports increased by 17%. As a result, imports attained the peak of 323M litres, and then dropped in the following year.

In value terms, vermouth imports declined to $791M in 2022. Over the period under review, total imports indicated tangible growth from 2012 to 2022: its value increased at an average annual rate of +2.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +53.7% against 2015 indices. The growth pace was the most rapid in 2021 with an increase of 30% against the previous year. As a result, imports reached the peak of $856M, and then reduced in the following year.

Imports By Country

In 2022, the United States (46M litres), France (33M litres), Germany (24M litres), Poland (19M litres), Russia (19M litres), Latvia (18M litres), Spain (18M litres), Belgium (17M litres) and the UK (13M litres) represented the major importer of vermouth in the world, committing 69% of total import. The Netherlands (7.7M litres), Portugal (7.6M litres) and Switzerland (4.8M litres) took a little share of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Latvia (with a CAGR of +26.0%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($173M) constitutes the largest market for imported vermouth worldwide, comprising 22% of global imports. The second position in the ranking was taken by Germany ($86M), with an 11% share of global imports. It was followed by Russia, with a 7.4% share.

In the United States, vermouth imports increased at an average annual rate of +16.0% over the period from 2012-2022. The remaining importing countries recorded the following average annual rates of imports growth: Germany (+6.2% per year) and Russia (+0.5% per year).

Import Prices By Country

The average vermouth import price stood at $2.6 per litre in 2022, dropping by -1.7% against the previous year. In general, the import price, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 an increase of 12%. As a result, import price reached the peak level of $2.7 per litre, and then dropped in the following year.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was the United States ($3.7 per litre), while Latvia ($1.5 per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+8.3%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Vermouth

In 2022, shipments abroad of vermouth increased by 2% to 307M litres, rising for the third consecutive year after two years of decline. In general, exports showed a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 when exports increased by 8.6% against the previous year. Over the period under review, the global exports hit record highs in 2022 and are likely to see gradual growth in the near future.

In value terms, vermouth exports expanded modestly to $700M in 2022. The total export value increased at an average annual rate of +3.5% from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2021 with an increase of 16%. Over the period under review, the global exports hit record highs in 2022 and are expected to retain growth in the immediate term.

Exports By Country

Italy was the key exporting country with an export of about 119M litres, which finished at 39% of total exports. Spain (69M litres) ranks second in terms of the total exports with a 23% share, followed by France (11%), Germany (8.7%) and Latvia (5.3%). Bulgaria (5.3M litres) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Latvia (with a CAGR of +46.0%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the largest vermouth supplying countries worldwide were Italy ($246M), France ($126M) and Spain ($92M), with a combined 66% share of global exports. Latvia, Germany and Bulgaria lagged somewhat behind, together accounting for a further 14%.

Among the main exporting countries, Latvia, with a CAGR of +37.0%, saw the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average vermouth export price amounted to $2.3 per litre, picking up by 1.7% against the previous year. Over the last decade, it increased at an average annual rate of +3.2%. The pace of growth was the most pronounced in 2013 an increase of 27% against the previous year. Over the period under review, the average export prices reached the peak figure in 2022 and is likely to continue growth in the immediate term.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was France ($3.7 per litre), while Bulgaria ($0.6 per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by France (+3.6%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform