Regional Organic Wine Market Outlook, Development Trends, Keys

Growing personal health awareness has intensified the demand for chemical-free products, making the organic food and beverage industry lucrative for large corporations. Alcoholic beverages are not far behind, with the organic wine market expected to double over the assessment period. The United States Department of Agriculture states that organic wine is “made without using banned substances or genetic engineering.” It is subject to the same rigorous USDA organic certification requirements as other products throughout its life cycle. The number of organic vineyards worldwide tripled between 2004 and 2011, which bodes well for the major players in the organic wine market.

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Gen Xers want to experiment with organic wines, making them a key target market

Higher disposable income and an appreciation for premium products ensure that Gen Xers are essential to thriving in the organic wine market. Wine bars and restaurants have started to cater to the needs of Gen X consumers, as they represent approx. one-third of sales in the United States. This demographic regularly experiments with new organic wines, and the casual dining culture in upscale bars and restaurants should benefit businesses in the organic wine market.

A long heritage of winemaking explains the European dominance of the organic wine market

Europe occupies a prominent place in the wine industry and represents more than half of world production. Experts suggest that Germany is set to dominate consumption for the period 2021 – 2025. According to the Federal Ministry of Food and Agriculture, a quarter of the millennial population regularly buys organic products. In the APAC region, Japan is an important market for organic wine produced in the United States. Other countries to target include Singapore, South Korea and Australia. Australia is both one of the largest producers and consumers of organic wine, with organic grape production doubling in three years from 2011 to 2014.

Convenience allows canned wines to register higher growth than the glass bottle segment

Although glass bottles currently hold the largest share by value in the organic wine market, the canned packaging segment is expected to show higher growth rates. Canned wines have become popular because they offer a unique serving option to consumers. In 2021, DEFY, a British wine manufacturer, unveiled the organic Italian wine in a 250ml can. COVID-19 has accelerated the shift to online shopping as customers have become reluctant to visit stores to buy wines. In February 2021, VILLA MARIA, a winery in New Zealand, launched EarthGarden – its online organic wine range.

Huge fire at Bronco’s Napa storage unit could stifle organic wine market prospects

In May 2021, a huge fire broke out at the Bronco Wine Company warehouse south of Napa. Although firefighters were able to rescue the vast majority of the inventory inside the premises, a preliminary survey estimated the damage at more than two million dollars. While the extent will ultimately be determined by insurance companies, its impact on Bronco’s competitive position in the organic wine market remains to be seen. Other companies profiled in this organic wine market report 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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