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Organic wine market surges: Healthier, sustainable options drive growth. Expected to hit USD 21.56 billion by 2030

Organic Wine Market

Organic Wine Market

Embracing health and sustainability, poised to reach USD 21.56 billion by 2030

The organic wine market is expanding due to rising consumer interest in healthier, sustainable products. Factors include environmental awareness and lifestyle shifts.”
— SNS insider
AUSTIN, TX, UNITED STATES, February 16, 2024 /EINPresswire.com/ -- 𝐎𝐫𝐠𝐚𝐧𝐢𝐜 𝐖𝐢𝐧𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 rising popularity of organic wine reflects a growing consumer preference for sustainable and healthier food and beverage options. Organic wine production not only benefits the environment but also offers potential health advantages and supports ethical and sustainable farming practices.
The organic wine market has been steadily growing in recent years, reflecting a shift in consumer preferences towards healthier and more sustainable products. This trend can be attributed to various factors, including increased awareness about the harmful effects of pesticides and synthetic additives used in conventional winemaking.

Market Size-
The SNS Insider report indicates that the was valued at USD 11.56 billion in 2022, and it is projected to achieve a market size of USD 21.56 billion by 2030, with a compound annual growth rate (CAGR) of 8.1% expected over the forecast period from 2023 to 2030.

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Market Report Scope –
The global market for organic wines has grown significantly. The benefits of their health and good taste are the reason why they're so popular. Consumers in different parts of the world have been able to access it through e-Commerce or Internet shopping. In the rest of the world, consumption of traditional wines appears to be declining. However, there is a strong interest in organic wines. The market was mainly led by European countries in particular among young people between the ages of 20 and 35 years, an age that is increasingly diverse.

Market Growth Factors –
Due to the fact that the grapes are grown in accordance with organic farming practices, organic wine is becoming more and more popular. The government bodies shall not allow the production of artificial & chemical fertilizers, pesticides, insecticides or herbicides. It contains many antioxidants, vitamins and minerals which make organic wine healthier. Resveratrol, which is found in red wine, has been shown to reduce cholesterol and prevent cancer. Several bodies, such as USDA Organic, Demeter, and Ecocert, regulate and certify. Compared to conventional wines, the cost of production of organic wines is relatively high. Natural and organically grown grapes are used to produce organic wine. During the cultivation of wine grapes, vineyards need to be certified organically and properly maintained. Moreover, in order to increase yields and production, organic certified vineyards do not use any chemicals or agrochemicals. Therefore, the maturity and ripening process of grapes takes more time.

Organic Wine Market Driving Factors:
• Increasing consumer awareness and preference for organic products: With growing concerns about the harmful effects of pesticides and chemicals on human health and the environment, consumers are becoming more conscious about their purchasing decisions. This has led to a significant rise in demand for organic products, including wine. Organic wine, made from grapes grown without synthetic fertilizers, pesticides, or genetically modified organisms (GMOs), aligns with the preferences of health-conscious consumers.
• Environmental sustainability: The organic wine market is driven by a strong emphasis on sustainable farming practices. Organic vineyards prioritize soil health, biodiversity preservation, and water conservation. By avoiding the use of synthetic chemicals and promoting natural pest control methods, organic winemakers contribute to reducing pollution and protecting ecosystems. This commitment to environmental sustainability resonates with environmentally conscious consumers who seek out products that minimize their ecological footprint.

Segmentation Analysis –
In 2022, the red organic wine category accounted for 61.5% of total revenues. Red and black grapes fermented with yeast are used to produce organic wines. Organically grown grapes are grown in certified organic vineyards. Most vineyards are located in the European area. Most of the world's organic vineyards are located in countries such as Italy, France, and Germany. It is likely that the consumption of red wine reduces cholesterol levels and prevents cancer. The bottles segment dominated the market in terms of revenue, accounting for 91.8% by 2022. The main packaging format for organic wine is glass bottles. Moreover, glass is the third largest material used for packaging wine due to its properties of recycling, reuse and degradability. In comparison with plastic, it is able to retain wines for a longer period because of its inert nature.

By Type:
• Red Organic Wine
• White Organic Wine
By Packaging:
• Bottles
• Cans
• Others
By Distribution Channel:
• On-trade
• Off-trade

Key Regional Development –
Europe accounted for 77.3% of the market's revenue in 2022, which was a dominant position. More than 50.1% of the market share was accounted for by a few European countries. Germany's the biggest consumer of organically produced wine. According to International Wines and Spirits Record (IWSR), Germany, France, and the U.K. were the top three markets accounting for approximately 24%, 16%, and 10% global organic wine consumption respectively. The highest consumption of organic wine in the world is still in Europe. In terms of revenue, the North American market is expected to grow at a compound annual growth rate of 10.0% over the forecast period. The North American market is the world's 2nd largest for Organic Wines. In 2021, the United States dominated the market for organic wines, as it was the third largest consumer in the world after France and Germany of organic red wine. Consumers in the U.S. are moving away from traditional products and towards ecolabels.

Impact of Covid-19 on Organic Wine Market :
• The Covid-19 pandemic has had a significant impact on various industries worldwide, and the organic wine market is no exception. As people have adapted to the new normal of social distancing and lockdown measures, their consumption habits have changed, leading to both challenges and opportunities for the organic wine industry.
• One of the initial challenges faced by the organic wine market was disruptions in the supply chain. With restrictions on transportation and trade, many wineries struggled to source organic grapes or deliver their products to consumers. This led to a decrease in production and availability of organic wines in some regions.

Key Takeaway
According to Wine Intelligence, the Brazilian wine market saw an increase of approximately three million regular consumers who drink at least once per month. Demand for organic products is growing worldwide, which has an important impact on the wine market. There are two main types of organic wine in the market: red organic wine and white organic wine. In view of their health benefits and availability, red organic wine is increasingly popular with consumers. Therefore, the market penetration of red organic wines is high.

Organic Wine Market Restraining Factors:
• Limited availability: One of the major restraining factors for the organic wine market is the limited availability of organic grapes. Organic farming practices require strict adherence to specific guidelines, which can be challenging for grape growers. As a result, there is a limited supply of organic grapes, leading to a restricted production capacity for organic wines.
• Higher production costs: Organic farming methods often involve more labor-intensive practices and the use of natural fertilizers and pest control methods. These factors contribute to higher production costs compared to conventional wine production. The increased expenses associated with organic farming can make it difficult for wineries to offer competitive pricing, limiting the affordability and accessibility of organic wines.

Recent Developments -
Montes Winery became the first winery in Chile to receive the Fair-Trade certification in 2021. The certification confirms that Montes Winery is committed to sustainable practices and supports the local community.
Bonterra Vineyards: A new range of organic wines, called the Bonterra Organically Grown Collection, was launched in 2021. A variety of reds, whites and rosé wines are produced in these wines from 100% organically grown grapes.

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Table of Contents:
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Research Methodology
3. Market Dynamics
3.1 Drivers
3.2 Restraints
3.3 Opportunities
3.4 Challenges
4. Impact Analysis
4.1 COVID-19 Impact Analysis
4.2 Impact of Ukraine- Russia war
4.3 Impact of ongoing Recession
4.3.1 Introduction
4.3.2 Impact on major economies
4.3.2.1 US
4.3.2.2 Canada
4.3.2.3 Germany
4.3.2.4 France
4.3.2.5 United Kingdom
4.3.2.6 China
4.3.2.7 Japan
4.3.2.8 South Korea
4.3.2.9 Rest of the World
5. Value chain analysis
6. Porter’s 5 forces model
7. PEST analysis
8. Global Organic Wine Market segmentation, by Type:
9. Global Organic Wine Market segmentation, by Distribution Channel:
10.Global Organic Wine Market segmentation, by Packaging:
11.Global Organic Wine Products Market, by region/ country
11.1 Introduction
11.2 North America
11.2.1 USA
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 France
11.3.4 Italy
11.3.5 Spain
11.3.6 The Netherlands
11.3.7 Rest of Europe
11.4 Asia-Pacific
11.4.1 Japan
11.4.2 South Korea
11.4.3 China
11.4.4 India
11.4.5 Australia
11.4.6 Rest of Asia-Pacific
11.5 The Middle East & Africa
11.5.1 Israel
11.5.2 UAE
11.5.3 South Africa
11.5.4 Rest
11.6 Latin America
11.6.1 Brazil
11.6.2 Argentina
11.6.3 Rest of Latin America
12. Company profiles
12.1 Avondale
12.1.1 Financial
12.1.2 Products/ Services Offered
12.1.3 Swot Analysis
12.1.4 The SNS View
12.2 ELGIN RIDGE WINES
12.3 The Organic Wine Company
12.4 Bronco Wine Company
12.5 King Estate Winery
12.6 GRGICH HILLS ESTATE
12.7 EMILIANA
12.8 Società Agricola QuerciabellaSpA
12.9 Frey Vineyards
12.10 La cantina PizzolatoS.r.l
13. Competitive Landscape
13.1 Competitive Bench Marking
13.2 Market Share Analysis
13.3 Recent Developments
14. Conclusion

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