The global organic wine market was valued at US$7.820 billion in 2019, and is expected to grow at a good CAGR over the forecast period. As the term suggests, organic wine is made from grapes which are grown organically. This means that grapes, which are chosen for the purpose of manufacturing of organic wine, are grown using practices which do not involve use of synthetic fertilizers, pesticides or any growth modifiers. The organic wine market growth is majorly being driven by rising awareness among people, in many countries, regarding the benefits of consuming organic foods and beverages. Japan, for instance, has been witnessing a continuously increasing popularity of organic foods for more than a decade.
According to a piece of information from the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF), the domestic production of plant-based, non-processed organic food in Japan stood at 29107 metric tons in 2005. This figure witnessed a continuous increase over the next 10 years and stood at 42386 metric tons in 2015. This growth of around 46% points towards increasing inclination of Japanese on organic foods. Not just developed economies, the population across which is often considered aware of best practices and their benefits, many developing economies are also showing a significant increase in awareness levels of people pertaining to the health benefits of organic foods and beverages. This is increasing the adoption of organic wine among people, thus propelling the market growth. The market growth is also being driven by growing disposable income of people in many countries across the globe. Growing health concerns is also boosting the consumption of organic wine among people. Organic wine is free from additives such as sulfur, fining, and yeast nutrients. With growing popularity of vegan diet and chemical-free food and beverage products, this factor will continue to pave the way for the growth of the global organic wine market.
Global organic wine market has been segmented on the basis of product, distribution channel, and geography. On the basis of the product, the market has been segmented as organic still wine and organic sparkling wine. The global wine market has also been classified by distribution channel as online and offline.
Market players are expanding their customer base by way of various growth strategies in order to maintain their global market position, thereby driving the market growth. For example, Spar has recently launched a range of organic wines under the new brand Orbis. The first two varieties that will be available include Orbis Organic verdejo sauvignon blanc and Orbis Organic tempranillo and shiraz, at a promotional price of £7. Biagio Cru & Estate Wines is also launching the first offering of its V2G (Vine to Glass) line of wines in the United States. The range is USDA (United States Department of Agriculture) certified and is free of pesticide, preservative, and herbicide. Also, the French wine range is sulfate-free and gets better with age unlike most organic wines on the market presently. Chile’s largest organic wine producer, Emiliana, has recently acquired a 292 hectare estate called El Trigal. The new property is currently uncultivated and the company is planning to start planting the land in October/November 2021. In February 2020, Tamburlaine Organic Wines acquired Cumulus winery facility at Cudal, spreading itself across the Orange Wine region. Growing interest of Hollywood celebrities in the organic wine business is also contributing to the growth of the global organic wine market. For example, Cameron Diaz, the well-known Hollywood actress and author, has recently entered the wine business with the launch of clean wine brand - Avaline- in collaboration with the entrepreneur Katherine Power. The range comprises of two organic wines in white and rose variants and are made with organic grapes.
By geography, Europe holds significant share in the global organic wine market
Geographically, the global organic wine market is classified into five major regional markets- North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC). Europe accounted for the significant share in the global organic wine market. Increased consumption of wine in European countries along with the high focus on environmental sustainability is the major factor behind the growing European organic wine market. Wine is the one of the most popular alcoholic beverages in this region, with the consumption of wine in France alone more or less equal to the amount of wine consumed in the United States. Furthermore, the region is the world’s largest producer of wine which makes this alcoholic beverage more easily accessible. North America also holds a noteworthy market share on account of increasing demand for organic food and beverage products. Growing population who are health conscious in countries like the United States and Canada is driving up the demand for organic wine in the North American region. High disposable incomes and increasing adoption of promotional and marketing strategies will further support the growth of organic wine market in North America during the forecast period. Moreover, wine manufacturers are also focusing on the diversification of their organic wine portfolio in order to capture a significant share in this emerging business segment while maintaining their market position, thus positively impacting the overall market growth in this region. Asia Pacific (APAC) and Middle East and Africa (MEA) will witness a decent compound annual growth rate during the projected period owing to the increasing demand for organic wines across restaurant sector.
Market Players and Competitive Intelligence
Prominent key market players in the global Organic wine market include Bronco Wine Company, Casella Cellar, Harris Organic Wines, Avondale, ELGIN RIDGE WINES, The Organic Wine Company, King Estate Winery, Emiliana Organic Vineyards, Frey Vineyards, Biagio Cru & Estate Wines, L.L.C, SPAR (UK) Limited and Domaines Auriol. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the global Organic wine market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.