Vermouth, guide between tradition, regulations and zero-alcohol trends

Vermouth Market Analysis 2024-2026: Italy Leads European Export

The market of  Italian alcoholic beverages maintained a positive dynamic in 2024, with theexport which continues to be a key element of the sector's growth. According to Eurostat data, the European Union alcoholic beverage industry exported about 29.8 billion euros in 2024, where vermouth and other aromatized wines represent about 0.3 billion euros of the total

In this context, theItaly stands out as one of the main European exporters, with a significant share also in flavored wine products. In terms of physical volumes, Italy exported about  95 million liters of vermouth in 2024, ranking first among exporting countries in the European Union, followed by  Spain e France (IndexBox, 2025).

The main  destination markets include the United States, Germany, and the United Kingdom, where Italian vermouth is appreciated both for mixology and direct consumption. The premium segment has recorded a particularly significant growth, with an increase of  12% year on year in high-end vermouth exports, driven by the rediscovery of classic cocktails and the trend toward artisanal aperitifs (IWSR, 2024).

From Carpano's herbal shop to global mixology: the roots of Vermouth

The origins of vermouth date back to the  1786 in Turin, when the herbalist Antonio Benedetto Carpano created the first modern vermouth at his shop in Piazza Castello. Carpano combined  moscatel wine flavored with an infusion of over 30 herbs and spices, including wormwood, cinnamon, cloves, and rhubarb, along with alcohol to increase the strength and aroma. This innovation immediately won the taste of the Turinese bourgeoisie and the Savoy court, quickly spreading in European salons.

In the 1838, Gaspare Campari developed his own recipe based on bitter herbs, while in 1863 Alessandro Martini and Luigi Rossi founded the  Martini & Rossi, which would bring Italian vermouth to international markets. Industrial production consolidated in Piedmont between the late 19th and early 20th century, when the Turin-Asti-Cantelli triangle became the production heart of the world’s vermouth. A distinctive element of the Piedmontese tradition was the use of  cinchona (bark of Cinchona officinalis L.) and of  gentian, which gave bitter notes to balance the sweetness of the base wine. The original recipes, often passed down as family secrets, could include up to 50 different botanical ingredients, gathered in the Alps and Piedmont hills.

The name ‘vermouth’ derives from the German ‘wermut’, ‘wormwood’ in English, which means wormwood (Artemisia absinthium L.). Wormwood is indeed the main flavoring ingredient of vermouth, as prescribed by Regulation (EU) No 251/2014 (see following paragraph). Other aromas used in the production of the liquor are often classified in the bitter, aromatic or bitter-aromatic categories (Panesar et al., 2011).

Regulation (EU) No 251/2014: legal requirements and protected designations

Vermouth – although often associated with liquors due to consumption tradition and role in cocktails – falls under the legal category and discipline of ‘aromatized wine products’. Regulation (EU) No 251/2014 therefore defines it as Vermouth, or Vermut or Vermout, as a aromatized wine with protected designation:

• whose content of  Wine represents at least the 75% of the total volume of the finished product;

• to which is eventually added grape must, partially fermented grape must or both;

• with possible addition of  ethyl alcohol of agricultural origin and/or distilled wine and/or distilled raisin grape;

• ‘whose characteristic taste has been obtained by using appropriate substances from the species of  Artemisia‘ (e.g. Artemisia pontica, Artemisia absinthium or other varieties);

• which has an  alcoholic strength by volume actual not less than 14.5 % vol and less than 22 % vol and a total alcoholic strength by volume not less than 17.5 % vol;

• with possible addition of colorants;

• with possible addition of sweeteners (EU regulation no. 251/2014, article 3.2 and Annex 2.A.3).

Labeling and Digital Label: the new rules on ingredients and calories

Thelabeling of flavored wine products marketed in the European Union contains the following mandatory information:

• the nutritional declaration, pursuant to article 9.1.l of regulation (EU) no. 1169/2011; and

• Thelist of ingredients, pursuant to article 9.1.b of the aforementioned regulation.

By way of derogation from the above rule:

• ‘the nutritional declaration on the packaging or on a label affixed thereto may be limited to the energy value, which may be expressed by the symbol “E” for energy. In such cases, the full nutritional declaration is provided electronically by indication on the packaging or on a label affixed thereto. Such nutritional declaration does not appear together with other information included for commercial or marketing purposes, and user data is not collected or tracked’

• ‘Thelist of ingredients may be provided electronically by indication on the packaging or on a label affixed thereto’. In this case, user data must not be collected or tracked; the list of ingredients must not appear together with other information included for commercial or marketing purposes; and the specific indication of allergenic ingredients which in Annex II to Regulation (EU) No 1169/2011 must in any case appear directly on the packaging or on a label affixed thereto, preceded by the wording 'contains' (EU Reg. No. 251/2014, Article 6).

The art of production: botanical secrets and extraction processes

The production of  Vermouth is based on a set of fundamental steps that require technical expertise and botanical knowledge:

1. Selection of the base wine: typically  white wine neutral (Trebbiano, Cortese) or red wine (Barbera, Nebbiolo) with characteristics appropriate for flavoring;

2. Preparation of botanical ingredients: the selection includes greater wormwood (Artemisia absinthium) as a characterizing ingredient, combined with citrus peel (bitter orange, lemon, grapefruit), gentian root (Gentiana lutea), chamomile, coriander, cardamom, vanilla, cinnamon and cloves. Botanical ingredients can be used fresh, dried or in the form of hydroalcoholic extracts;

3. Aromatic extraction: traditional methods include:

• maceration cold maceration of botanicals in wine or alcohol for 15-30 days;

• infusion hot infusion, to accelerate the extraction of aromatic compounds;

• distillation of some botanicals to obtain concentrated essential oils.

4. Fortification: addition of  ethyl alcohol (96% vol.) or wine brandy to reach the desired final strength, generally between 15% and 18% vol. for commercial vermouths;

5. Sweetening and coloring: addition of sugar (sucrose) up to 130-150 g/L for sweet vermouths, less than 40 g/L for dry vermouths. Caramel is used to give the characteristic amber color to red vermouths;

6. Maturation: resting period in stainless steel or wooden barrels for 2-6 months, during which integration of aromatic components occurs. Some producers use oak barrels to add vanilla and tannic notes;

7. Stabilization and filtration: cold treatments (-5°C) to precipitate tartrates and  filtration final step to ensure clarity and microbiological stability of the product.

The most significant innovation in vermouth production concerns botanical experimentation. Producers are expanding the traditional repertoire, including local herbs, exotic spices, and unusual ingredients such as seaweed or mushrooms, to create unique and distinctive aromatic profiles in an increasingly competitive market.

Also the production technology is evolving: precision extraction methods, such as vacuum distillation and rotary evaporation, allow aromas to be infused more delicately and controlledly, preserving volatile compounds – including terpenes – that would be lost with traditional techniques.

Organoleptic classification: from Sweet Red to Superior Vermouth

The main types of  Italian vermouth include:

• red vermouth (sweet or red): characterized by sweet and rich notes, with intense aromas of spices (cinnamon, vanilla, cloves), bitter herbs (wormwood, gentian), and caramelized citrus. Sugar content 130-150 g/L, alcohol strength 15-16% vol;

• white vermouth (dry or extra dry): drier and fresher profile, with predominance of herbal, floral (chamomile, elderflower), and citrus notes. Sugar content below 40 g/L for dry, up to 90 g/L for sweet white. Ideal for cocktails such as  Martini classic;

• rosé vermouth: features a balance between sweetness and dryness with a fruity component (red fruits, rose) and delicate spicy notes. Made with rosé wines or blends of red and white wines;

• superior vermouth: premium category with greater aromatic complexity, derived from ‘selected botanicals, extended aging times and the use of superior quality base wines.

The characteristics organoleptic distinctive include:

• herbaceous and spicy aromas provided by wormwood, gentian, cinchona and alpine botanicals;

• balance between  sweetness (residual sugars) e bitterness (phenolic compounds from wormwood and cinchona);

• taste complexity resulting from the interaction between over 30-50  volatile compounds identified in the aromatic profile (Martín‑Gómez et al., 2025);

• persistence on the palate with an aftertaste characterized by balsamic and bitter notes.

Segmentation and trend: the climb towards premium and artisanal positioning

The Italian vermouth market is evolving towards more strategic segmentation based on price and production method. The clear analysis by IndexBox (2026) identifies four main levels:

• value: a highly competitive segment, often dominated by 'private labels';

• standard: the mainstream of the most famous brands, in their basic lines;

• premium: the fastest-growing segment, includes vermouth with unique botanical stories, organic certification or historic brands linked to the Italian heritage;

• ultra-premium: includes artisanal products (craft vermouth), made with local botanicals, native wines, organic productions and innovative recipes – responding to demands for authenticity, territory, natural ingredients and traditional methods, at prices comparable to high-end spirits.

Zero-alcohol vermouth: the lever of 'health claims' for Generation Z

The growth prospects of the overall vermouth market are moderate and steady. However, new prospects related to aproduct innovation that can primarily meet the interest of Generation Z, and not only. Generation Z (born between 1997 and 2012) is characterized by digital awareness, health consciousness and sensitivity towards sustainability.

In this context, vermouths with low alcohol content (wine-based flavored beverages, volumetric alcoholic strength not less than 4.5% vol. and less than 14.5% vol) or zero-alcohol can offer:

• distinctive sensory experience, thanks to selected botanicals and natural aromas, even with reduced or zero alcohol content;

• organic or biodynamic ingredients, also vegan, in line with interest in environmental sustainability;

• distinctive and modern packaging, conveying transparency, quality, and responsibility.

Furthermore, zero-alcohol vermouths can feature nutritional information and health claims compliant with the ‘Nutrition and Health Claims Regulation’ (EC) No 1924/06 and the transitional regime granted to some ‘botanicals’ (Dongo, 2025). This allows labeling nutritional properties and health benefits (e.g., antioxidant and anti-inflammatory properties of phenolic compounds and flavonoids), beyond the traditional functions of vermouth – not by chance developed by an herbalist – which today cannot be claimed on alcoholic beverages.

Our team of FARE (Food and Agriculture Requirements) is available to operators wishing to explore these opportunities linked to specific ingredients and botanical extracts, enhancing Gen Z’s focus on wellness and premium quality. With the added value of excise savings. Thanks to these elements, low- and zero-alcohol is not just a technical feature but becomes a strategic marketing lever, strengthening the positioning of premium and ultra-premium Italian vermouth among innovative Made in Italy cocktails and aperitifs.

Comparison: traditional vs zero-alcohol

Beyond the aperitif: new horizons for Vermouth in cooking and food pairing

The Vermouth is suitable for multiple consumption modes:

• aperitif: served neat with ice and a  citrus peel, represents the traditional Piedmontese aperitif. The ideal temperature is 6-8°C for white vermouths, 8-10°C for red ones;

• mixology: fundamental ingredient in classic cocktails such as  Negroni (red vermouth, gin, Campari),  Manhattan (red vermouth, whiskey, angostura),  Martini (dry vermouth, gin or vodka),  Americano (red vermouth, Campari, soda);

• cuisine: used for  to deglaze risottos, braises and stews, imparting complex aromatic notes to dishes;

• gastronomic pairings: in the ultra-premium segment, red vermouth is offered alongside aged cheeses, cured meats, dried fruit, and dark chocolate. White vermouth is paired with seafood appetizers, fish carpaccios, and delicate preparations.

Strategic conclusions

The Italian vermouth is confirmed as a fundamental asset of Made in Italy, able to evolve without betraying its identity. The real competitive challenge for operators today is played on two fronts: transparency informational transparency (through digital labels) and theproduct innovation.

Expansion towards low- and zero-alcohol does not represent a threat to tradition, but a strategic market extension. Thanks to the use of botanicals, companies can today communicate nutritional benefits and antioxidant properties – opportunities closed to alcoholic drinks – in response to Generation Z's demand for health and sustainability.

Enhancing the herbal heritage with a functional approach, while optimizing the tax burden thanks to the exemption from excise duties, is the main path to consolidate the primacy of Italian vermouth among high-end aperitifs worldwide.

Dario Dongo

Image by Catalin Stefan from Pixabay

Bibliography

• Dongo, D. (2025, May 1). The EU Court ruling on botanicals highlights the urgency to reform the NHCR. FT (Food Times). https://www.foodtimes.eu/it/consumatori-e-salute/corte-ue-botanicals-riforma-nhcr/

• IndexBox. (2026). EU – Vermouth – Market Analysis, Forecast, Size, Trends and Insights.  https://www.indexbox.io/store/eu-vermouth-market-analysis-forecast-size-trends-and-insights/

• Martín‑Gómez, J., Marquez, A., Leon, J. M., Ramirez, P., Merida, J., & Serratosa, M. P. (2025). Characterisation of botanicals used as flavouring agents in the elaboration of vermouth. International Journal of Food Science and Technology, 60(2), vvaf167. https://doi.org/10.1093/ijfood/vvaf167

• Panesar, P. S., Joshi, V. K., Panesar, R., & Abrol, G. S. (2011). Vermouth: Technology of production and quality characteristics. In R. S. Jackson (Ed.), Advances in Food and Nutritional Research (Vol. 63, pp. 251–283). Elsevier, Inc.

• Regulation (EU) No 251/2014 of the European Parliament and of the Council of 26 February 2014 on the definition, description, presentation and labelling of aromatised wine products. Consolidated text: 08/12/2023 http://data.europa.eu/eli/reg/2014/251/2023-12-08

• Regulation (EU) No 1169/2011 of the European Parliament and of the Council of 25 October 2011 on the provision of food information to consumers. Latest consolidated text: 01/04/2025 http://data.europa.eu/eli/reg/2011/1169/2025-04-01

• Regulation (EC) No 1924/2006 of the European Parliament and of the Council of 20 December 2006 on nutrition and health claims made on foods. Consolidated text: 13/12/2014 http://data.europa.eu/eli/reg/2006/1924/2014-12-13

• Regulation (EU) 2019/787 of the European Parliament and of the Council of 17 April 2019 on the definition, description, presentation and labelling of spirit drinks, the use of the names of spirit drinks in the presentation and labelling of other foodstuffs, the protection of geographical indications for spirit drinks, the use of ethyl alcohol and distillates of agricultural origin in alcoholic beverages, and repealing Regulation (EC) No 110/2008. Current consolidated version: 13/05/2024 http://data.europa.eu/eli/reg/2019/787/2024-05-13