What is Organic Wine?
Organic wine is wine made from grapes grown according to organic farming principles, which typically excludes the use of artificial chemical fertilizers, pesticides, fungicides, and herbicides
Production of organic wine witnessed an annual growth of over 20% in 2019 and 2020, which is significantly higher than that of conventional wine. There are an estimated 1500–2000 organic wine producers globally, with more than 885 organic domains in France alone.
What is the growth rate of the global Organic Wine Market?
The global organic wine market was valued at USD 8,404.24 million in 2021 and is estimated to reach USD 18,573.27 million by 2029.
Industry Dynamics:
Ethical food consumption has been on the rise lately in most developed countries. This recent shift in postmodern consumerism may be explained from various angles, such as the growing health-seeking niche market, the symbol of elevated social and economic status, and the growing number of people who fear the wide-ranging consequences of food and beverages micro and macro environment.
French paradox claims that moderate consumption of red wine might benefit people's well-being and is being re-interpreted in a more 'natural' way among those health-concerned consumers. Moreover, organic wine strives to limit the chemical components that go into the wine.
Industry Opportunities:
Innovation in the packaging of wine is created a new opportunity for the organic wine market.
Wine industry platform Winerytale is providing a synonymous app that allows wine manufacturers to manage, market, and create an augmented reality (AR) experience to consumers via smartphone-scannable labels. The Winerytale platform seeks to boost sales and connect wineries with the new generation of tech-savvy wine lovers. The app has inspired more than 500 wineries across the globe into employing futuristic marketing trials.
AR and artificial intelligence (AI) was once considered the future but have now become a part of daily life. Automation has made processes easier, more agile, and faster. Rising innovation in the wine industry is expected to create a new opportunity for market growth.
Impact of COVID-19 on the Industry:
COVID-19 had a negative impact on the global organic wine market, causing significant decline in consumption volume and sales revenue across most of the countries. The closure of foodservice industry, HoReCas, bars and restaurants owing to lockdown restrictions led to lower wine consumption volume. Social restrictions measures around the world have impacted the demand and the production of wine
Moreover, COVID-19 made a major impact on the wine industry due to the forced closure of on-trade wineries in various countries such as the United States, the United Kingdom, India, and others to control the impact of the pandemic.
Furthermore, the demand for organic wine is expected to increase post-COVID-19, as consumers are becoming more and more concerned about what they eat and drink.
Regional Share Insights:
North America is estimated to account for a share of 6.33% of total dollar sales in 2020. The North American organic wine market is estimated to grow with a CAGR of 13.40% during the forecast period, reaching USD 2,976.26 million in 2029.
The United States is expected to dominate the North American organic wine market with a share of 84.28% in the year 2020. For organic wine produced in and imported to the United States, both the growing of the grapes and the production of the wine must be certified.
Canada accounted for market revenue share of 13.71% in the year 2020. Although Canada’s share of global wine production is small, producers have found success through careful selection of the right grape varieties, and cultivation in regions with microclimates that are appropriate for viticulture.
The largest regions for organic grape growing in Canada are in British Columbia, Ontario, Quebec, and Nova Scotia. In Canada, organic wine is produced from certified organic grapes and regulated additives.
In August 2021, Domaine Bousquet, Argentina’s largest producer and exporter of organic wines, has released its first USDA-certified organic white wine. The no-sulfites-added Virgen Organic Chardonnay 2021 debuts in major markets nationwide, joining an existing trio of reds: Virgen Red Blend, Virgen Cabernet Sauvignon, and Virgen Malbec.
The European countries accounted for the highest organic wine consumption because of high demand from France, Germany, and the UK, as people here are more aware about the health benefits of organic products.
The organic wine market in China is expected to grow with CAGR of 12% as people in China are more conscious about what they eat and prefer eating healthy food. This is part of their culture with the Chinese medicine, the Taichi, the virtues ginger and ginseng. Moreover, Chinese people like to drink warm water rather than fresh because it is better suited to the ambient temperature of the body. Therefore, the only word “natural” for organic wine could convince the Chinese to buy this type of wine.
Competitive Landscape Analysis and Major Players Profiled in the Industry:
Some of the key players in the global organic wine market are Tamburlaine Organic Wines, Mount Avoca, Frey Vineyards, The Wine Cellar Group, King Estate Winery, Dry Farm Wines, Orion Wines, Villa Maria, Concha y Toro, and Sula Vineyards among others.
Several key companies have adopted merger and acquisitions policies, product portfolio expansion, and collaborations to help them to gain prominence as strong competitors in the market and expand its production in the global organic wine market.
There are evolving consumer trends and rising demand for niche product categories such as organic and natural in the food and beverage industry. Organic and natural food products have grown in popularity worldwide over the last decade, particularly among millennials. More and more organically based wineries are being established, and traditional wineries are expanding their product line to include organic wine.
