Vermouth Market Size, Share, and Growth Analysis, By Product Type (Sweet, Dry), By Packaging (Plastic Bottles, Glass Bottles), By End Use, By Distribution Channel, By Region - Industry Forecast 2025-2032

Vermouth Market size was valued at USD 11.5 billion in 2023 and is poised to grow from USD 12.25 billion in 2024 to USD 20.27 billion by 2032, growing at a CAGR of 6.5% during the forecast period (2025-2032).

The global vermouth market is poised for significant growth, driven by the increasing popularity of low-alcohol cocktails enhanced with spices and herbs. As consumers gravitate towards traditional alcoholic beverages, complemented by rising living standards and changing lifestyles, the demand for vermouth continues to grow. Typically comprising 75% wine and infused with various botanicals, vermouth is favored for its moderate alcohol content of around 18% ABV, appealing to modern drinkers seeking flavor with less intoxication. Major European markets, including Spain, France, and Italy, demonstrate strong demand, anticipating high market growth. Recent innovations, such as sustainable packaging from Proof & Company and the launch of premium ready-to-drink cocktails by Diageo, further support this trend, positioning vermouth as a sophisticated and eco-friendly choice for consumers.

Top-down and bottom-up approaches were used to estimate and validate the size of the Vermouth market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Vermouth Market Segments Analysis

Global Vermouth Market is segmented by Product Type, Packaging, End Use, Distribution Channel and region. Based on Product Type, the market is segmented into Dry and Sweet. Based on Packaging, the market is segmented into Plastic Bottles, Glass Bottles and Others. Based on End Use, the market is segmented into Beverage Industry, Food Industry and Horeca. Based on Distribution Channel, the market is segmented into Specialty Stores, Modern Trade, Restaurants/Hotels/Bars, Convenience Stores and Retailers. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Vermouth Market

A key factor driving the expansion of the global vermouth market is the rising consumer preference for low-alcohol beverages. This trend is especially notable among millennials and adults who regularly frequent pubs and restaurants, where there is a growing demand for sophisticated yet lighter alcoholic options. The shift towards low-alcohol drinks is supported by a broader health-conscious movement, with consumers increasingly aware of the lifestyle benefits associated with moderate alcohol consumption. As a result, the vermouth market is experiencing a surge in interest, catering to patrons seeking a balanced approach to enjoying their social drinking experiences.

Restraints in the Vermouth Market

The vermouth market faces significant challenges primarily due to intense competition from craft beers and other alternative alcoholic beverages. These alternatives tend to capture the same customer segment as vermouth, particularly millennials and adults frequenting bars and restaurants. Craft beers, renowned for their diverse flavors and local production appeal, have garnered a substantial fan base among consumers who favor artisanal options. This shift in consumer preferences increasingly diverts potential vermouth drinkers toward readily available and heavily marketed craft beer selections. Consequently, the vermouth market must navigate these changing trends to maintain its consumer base amid rising competition.

Market Trends of the Vermouth Market

The vermouth market is experiencing significant growth driven by the burgeoning craft cocktail culture, particularly in North America and Europe. This trend reflects a growing consumer preference for artisanal and innovative beverage experiences, with vermouth emerging as a versatile ingredient in upscale mixology. As bartenders embrace the aromatic complexity of vermouth, it has become a staple in crafting unique cocktail recipes, attracting discerning customers seeking elevated drinking experiences. This elevated status is further fueled by the rise of cocktail bars and a heightened focus on quality ingredients, positioning vermouth as a key player in the expanding landscape of premium beverage offerings.