European markets stimulate demand for organic wine
While the total volume of still wines is increasingly low but remains largely stable globally, the organic wine market is growing at a much faster rate, notes the IWSR Organic Wine Report, released this month.
Global consumption of still wine is expected to reach 2.43 billion nine-liter cases by 2022, with the organic wine sub-category expected to show the strongest growth: at 9.2% compound annual growth 2017-2022).
While the organic wine market remains a small subset of the overall global wine industry, IWSR expects a “A rapid increase in the coming years as consumer sentiment for sustainability and organic products increases”.
Although each market has individual characteristics, organic wine often attracts millennials, those with higher disposable income, and consumers who value natural products in the F&B category.
Europe takes the lead
Europe will account for 78% of the global organic wine market by 2022, compared to the Americas which will account for around 12% of total organic wine consumption.
In Europe, the European Union defines wine as “organic” if it has been produced from organic grapes or from oenological techniques and substances authorized for organic wine.
Germany is the world’s largest market for organic still wine: growing at a CAGR of 17.9% since 2012.
“Organic wine accounted for 6% of still wine consumption in the country in 2017, with locally produced German wine accounting for around 52% of this volume. “says IWSR. “Organic wine in Germany is particularly bought by women, consumers over 50 and high income. “
Another of the leaders in organic wine is France, where the category is expected to increase by 13.3% to 17 million cases against a decline in the overall wine market of 2.1% (CAGR 2017-2022).
Organic wine represents around 4% of the total category of wines, almost all from French producers.
“The distribution of organic wine in France is dominated by medium and large surfaces, and is increasingly essential in the pouring by glass trade.says IWSR. “Although Paris is the main driver of the country’s organic wine market, the trend is starting to spread to other major metropolises and the French countryside.”
In the UK, the value of organic is particularly important: consumers are willing to pay on average 38% more for a bottle of organic wine. The market is also oriented towards red wine (60% red against 40% white / rosé).
Here, organic wine is expected to grow by 9.4%, against a backdrop of declining overall wine consumption.
“About 72% of organic wine in the UK is from the Old World, led by France, Italy and Spain ”, says IWSR. “Organic wine caters to a large audience in the country, but is primarily aimed at wealthier wine lovers and / or regular buyers of organic products, and those who reside in metropolitan areas – particularly London. . “
Organic wine resonates with millennials in the United States
In the United States, organic wine is still a niche category: but it is developing and taking the share of non-organic wines. The total volume of wine in the United States is expected to grow at a CAGR of 1% (2017-2022); but organic wines should post growth of 14.3%.
The United States Department of Agriculture (USDA) requires that before wine can be sold as “organic,” both the cultivation of the grape and its conversion to wine must be certified.
“Over 70% of organic wine sold in the United States is produced in the country ”, said the IWSR. “Buyers of organic wine in the United States tend to skew women, millennials and higher incomes, especially consumers in major markets who focus on healthy lifestyles and have a preference for food and wine. natural drinks. “
Asia: Japanese organic wine boom
In Japan, organic wine represents around 10% of the total still wine market – proportionately more than Germany, the leader in its category. It has already seen a strong average growth rate of 8.2% over the past five years, and although this is expected to slow down in the coming years, the segment will still outperform the entire wine category.
The Japanese organic wine market is mainly made up of red wine (84.8%) and most wines are imported (with significant volumes coming from France).