Organic Wine Market Growth Drivers, Business Strategies and Future Prospects 2025

Author : Aarti Murkute | Published On : 04 Aug 2021

Increasing awareness around personal health has intensified the demand for chemical-free products, making the organic food & beverage industry lucrative for major companies. Alcoholic beverages are not far behind with the organic wine market anticipated to grow twofold for the assessment period. The U.S Department of Agriculture states that organic wine is ‘made without using prohibited substances or genetic engineering’. It undergoes the same rigorous requirements of USDA organic certification as other products throughout its lifecycle.” The number of global organic vineyards has grown threefold from 2004 to 2011, auguring well for major stakeholders in the organic wine market.

 

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Gen X Wish to Experiment With Organic Wines Making Them Key Target Market

A higher disposable income and an appreciation for premium products ensures that Gen X is vital to prosperity in the organic wine market. Wine bars and restaurants have begun to cater to Gen X consumers as they represent approx. a third of revenue in the US. This demographic regularly experiments with novel organic wines and the casual dining culture at upscale bars and restaurants should benefit companies in the organic wine market.

 

Long Heritage of Winemaking Explains European Dominance of Organic Wine Market

Europe holds a prominent place in the wine industry and accounts for more than half of global production. Experts suggest that Germany is poised to lead consumption for the period from 2021 – 2025. According to the Federal Ministry of Food & Agriculture, a fourth of the millennial population regularly purchase organic products. In the APAC region, Japan is a prominent market for organic wine produced in the US. Other countries to target include Singapore, South Korea, and Australia. Australia is both one of the largest producers and consumers of organic wine with the production of organic grapes doubling in three years from 2011 to 2014.

 

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Conve

nience Allows Canned Wines to Record Higher Growth Than Glass Bottle Segment

Although glass bottles currently hold the largest value share of the organic wine market, the canned packaging segment is likely to demonstrate higher growth rates. Canned wines have become popular as they provide a single serve option to consumers. In 2021, DEFY, a British wine manufacturer, unveiled organic Italian wine in 250 ml cans. COVID-19 has hastened the shift towards online shopping as customers have become wary of going to stores to purchase wines. In Feb 2021, VILLA MARIA, a winery in New Zealand, launched EarthGarden – its organic wine range online.

 

Huge Fire at Bronco’s Napa Storage Unit Could Stifle Prospects in Organic Wine Market

In May 2021, a huge fire broke out at Bronco Wine Company’s south Napa storage facility. Although firefighters could rescue the vast majority of inventory inside the premises, a preliminary study estimated the damage at more than two million dollars. Even though the full extent will eventually be determined by the insurance companies, its impact on Bronco’s competitive position in the organic wine market remains to be seen. Other companies profiled in this report on the organic wine market include Elgin Ridge Wines, Avondale, Clos Ventas Wines, The Organic Wine Company, Bonterra Organic Vineyards Hopland CA, Frey Wine, Portia Valley Wines, Babich Wines Limited, and Emiliana Organic Vineyards.

 

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