CAGR: 10.5%Current Market Size: USD 9.3 BillionFastest Growing Region: North America
Largest Market: EuropeProjection Time: 2023-2030Base Year: 2022
The global organic wine market is expected to grow from USD 9.3 billion in 2022 to USD 20.6 billion by 2030, at a CAGR of 10.5% during the Projection period 2023-2030. The growth of the organic wine market is mainly driven by the growing disposable income.
Organic wine is made from grapes produced without the use of chemical fertilizers, pesticides, fungicides, or herbicides. Organic farming practices allow for the production of regulated, approved, secure, and high-quality food while providing major economic and environmental benefits and sustaining a healthy ecosystem. The demand for organic foods is rapidly increasing, which is fueling the organic wine business. In addition, the changing consumer behavior patterns for food and beverages around the world are driving market expansion. The Coronavirus outbreak impacted the global organic wine supply chain and distribution channel by closing and restricting pubs, restaurants, and hotels around the world. According to the 2020 ProWein Business Report, the COVID-19 affected around 77% of hotels, with sector turnover decreasing by 60% and restaurant sales declining by 91% by the end of 2020. However, the wine sector has benefited greatly from the lockdown and travel restrictions in several locations. Wine consumption increased across a larger spectrum of at-home occasions. According to Wine Intelligence, the Brazilian wine market added around three million frequent wine drinkers (at least once a month) between 2019 and 2020. Global demand for organic products is increasing, which has a big impact on the wine business. There are two major types of organic wine on the market: red organic wine and white organic wine. Red organic wines are popular among customers due to their health benefits and accessibility. As a result, red organic wines have a larger market penetration than other varietals.
Sample Request: - Global Organic Wine Market
Market Dynamics:
Drivers:
The increased consumer interest in eating the right food and drinking the appropriate beverage, as well as consuming environmental friendly products, will boost the market for organic wine. Organic wine is a segment of the global wine market that is expected to develop the greatest, resulting in an increase in the number of organic vineyards worldwide. This increased number of organic vineyards will help to meet the market's growing demand for organic wine.
Restraints:
Organic winemaking is a time-consuming and expensive process that demands attention to detail. Organic wine is a completely natural procedure that does not use any protective or resistant sprays to minimise the negative impacts of weather changes. Furthermore, the certification process required to certify your wine as organic is likewise expensive.
Opportunities:
The most well-known type of packaging is the use of glass bottles for wine. However, because of its heavy nature and easy to break, different substitutes are discovered. PET plastic is one such material, and it is the most promising packaging solution. It is simple to use, lightweight, shatter-resistant, and long-lasting. It also minimises the amount of space a bottle takes up, which can help to save money on transportation. Other creative uses for PET plastic, such as cans and tetra packs, are being investigated in order to cut input costs and enhance profit margins.
Challenges:
Different countries produce wine and have different regulations that must be followed in order for a wine to be labelled as organic. The definition of organic wine varies by country, which may be a barrier for exporting organic wine or growing wine production globally.
Segmentation Analysis:
The global organic wine market has been segmented based on tyep, packaging, distribution channel, and region.
By Type
The type segment is white organic wine and red organic wine. The red organic wine segment led the largest share of the organic wine market with a market share of around 56.78% in 2022. Red organic wines are created by fermenting red or black grapes with yeast. The grapes are farmed naturally in organically certified vineyards. The vast majority of vineyards are found in Europe. The majority of the world's organic vineyards are located in Italy, France, and Germany. Red wine consumption is believed to reduce cholesterol and prevent cancer in humans.
By Packaging
The packaging segment is cans, bottles, and others. The bottles segment led the largest share of the organic wine market with a market share of around 37.89% in 2022. Organic wines are typically packaged in glass bottles. Furthermore, they are often utilised in beverage packaging. Glass is the world's third most used packaging material. Because of its recyclable, reusable, and innocuous qualities, glass is widely used for wine packaging. In comparison to plastic bottles and cans, it can keep wines for a long period due to its inert nature.
By Distribution Channel
The distribution channel segment is off-trade and on-trade. The off-trade segment led the largest share of the organic wine market with a market share of around 68.3% in 2022. Organic wine is distributed off-trade through wine merchants, hypermarkets, supermarkets, retail outlets, organic stores, caterers, and e-commerce platforms. Consumer preference for e-commerce is projected to boost segment expansion. The nationwide lockdown increased demand for off-trade sales of organic wines.
Global Organic Wine Market- Sales Analysis.
The sale of the organic wine market expanded at a CAGR of 8.9% from 2016 to 2022.
Organic wines are becoming increasingly popular around the world. Their popularity is due to its health benefits as well as their delicious taste. E-commerce or internet retail has made it available to people all over the world. Traditional wine consumption appears to be gradually declining over the world. Organic wines, on the other hand, are popular. European countries dominated the market, particularly among millennials (20 to 35 years old), a generation that is deeply concerned about environmental and social issues.
SOWINE, a France-based marketing and communication firm, performed a poll in New York and Paris in 2019 to better understand inhabitants' wine expectations. According to the report, around 52% of New York residents and 68% of Paris people are more ecologically conscious. According to the survey, customers between the ages of 21 and 35 are more likely to purchase "responsible" wine (22% in New York and 35% in Paris) than the elder generation (15% in New York and 30% in Paris).
Thus, owing to the aforementioned factors, the global organic wine market is expected to grow at a CAGR of 10.5% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the organic wine market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe region dominated the organic wine market and held a 38.2% share of the market revenue in 2022.
Global Organic Wine Market - Country Analysis:
Germany's organic wine market size was valued at USD 1.05 billion in 2022 and is expected to reach USD 2.2 billion by 2030, at a CAGR of 9.7% from 2023 to 2030. Germany is the largest organic wine consumer. According to the International Wines and Spirits Record (IWSR), Germany accounted for roughly 24% of global organic wine consumption, respectively.
China’s organic wine market size was valued at USD 0.60 billion in 2022 and is expected to reach USD 1.24 billion by 2030, at a CAGR of 9.5% from 2023 to 2030. China is the ASia pacific market leader. Notably, red wine consumption is more prevalent as a tradition in China, where the colour red is considered lucky. As a result, China is one of the major markets for red wine, competing with France and Italy.
India's organic wine market size was valued at USD 0.46 billion in 2022 and is expected to reach USD 0.94 billion by 2030, at a CAGR of 9.4% from 2023 to 2030. The consumption of organic wine is rising in India due to increasing disposable income of people and rise in awareness of the health benefits of red wine.
Key Industry Players Analysis:
To increase their market position in the global organic wine market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
10.5% |
Market Size |
9.3 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Type, By Packaging, By Distribution Channel, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Avondale, Elgin Ridge Wines, The Organic Wine Company, Kendall-Jackon Winery, King Estate Winery, Bronco Wine Company, Emiliana Organic Vineyards, Grgich Hills Estate, Frey Vineyards, and Societa Agricola QuerciabellaSpA. |
By Type |
|
By Packaging |
|
By Distribution Channel |
|
Regional scope |
|
Scope of the Report
Global Organic Wine Market By Type:
Global Organic Wine Market By Packaging:
Global Organic Wine Market By Distribution Channel:
Global Organic Wine Market By Region:
Global organic wine market is expected to reach USD 20.6 billion by 2030.
The organic wine market is projected to have a CAGR of 10.5%.
Based on the type, the organic wine market is segmented into white organic wine and red organic wine.
The increased consumer interest in eating the right food and drinking the appropriate beverage, as well as consuming environmental friendly products, will boost the market for organic wine. Organic wine is a segment of the global wine market that is expected to develop the greatest, resulting in an increase in the number of organic vineyards worldwide.
Leading market players active in the global organic wine market are Avondale, Elgin Ridge Wines, The Organic Wine Company, Kendall-Jackon Winery, King Estate Winer, Bronco Wine Company, Emiliana Organic Vineyards, Grgich Hills Estate, Frey Vineyard, Societa Agricola QuerciabellaSpA among others.
Political Factors- The political phenomenon of the wine industry in the context of PEST analysis highlights the activities of legislative and regulatory agencies that affect wine producers in the face of political challenges to the wine industry due to prohibition articles in the laws. There are also bans against private alcoholic beverage sales. However, the local wine business received the governor's support and substantial funding from the agriculture department to collect grapes.
Economic Factors- The wine industry's economic phenomena in the domain of PEST analysis that the changes in economic trends influencing the wine industry in the aspect of the taxation system, business exchange rates, seasonal market ups, and downs, price policy, monetary policy, and fiscal policy. They have had significant hurdles in previous economic downturns when people prefer to drink local vintages rather than pricey wine.
Social Factors- The social phenomena of the wine industry in the domain of PEST analysis is that the luxury wine segment is predicted to become the industry's new driver in the local market. There are ethical as well as cultural limitations in the wine market, as well as religious limitations. Some civilizations, religious and not relevant to their ethical choice, do not support this.
Technological Factors- The technical phenomena of the wine industry in the context of PEST analysis is the evolution of the production process as a result of technological advancement. As technology advances, there is a shift in mobile bottling. Furthermore, there has been a growth in customer relationship management, mobile marketing, and proper communication to please the customer. The state's technological advancements enable organic production at the local market.
Environmental Factors- The role of ecological standards enforcement organizations in ensuring norms is crucial. However, in developing nations, these organizations frequently stall the procedure in order to obtain bribes. Winemakers should be aware that such methods exist in their nation. National and municipal environmental policies are frequently at odds. This can aid Winemakers in a variety of decisions, including plant site, product development, and pricing strategy.
Legal Factors- Winemakers should evaluate the extent of protection afforded to intellectual property rights under the country's legal framework. Winemakers must understand consumer laws, the pace of enforcement, the attitude of authorities towards consumer protection legislation, and the role of activist groups in consumer protection law enforcement. Transparency is vital for making fair and consistent decisions. Wine Winemakers can plan ahead with greater confidence if the process is consistent and transparent.
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