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The organic wine market size is estimated to grow at a CAGR of 8.57% between 2022 and 2027. The market size is forecast to increase by USD 5,019.97 million. The growth of the market depends on several factors, including the rising trend of organic wine tourism, growing demand from millennials, and the health benefits of wine.
This organic wine market report extensively covers market segmentation by product (organic still wine and organic sparkling wine), distribution channel (offline and online), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing demand from millennials is notably driving the market growth, although stringent government regulations may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand from millennials is notably driving the organic wine market growth. Millennials make up a large portion of the global population. There is an increasing demand for a wide variety of alcoholic beverages from this population. Organic wine consumption among millennials is higher in North America than in other regions. According to the U.S. Census Bureau, millennials nearly outnumbered baby boomers in the country in 2018. Millennials are becoming increasingly aware of the authenticity of different types of alcoholic beverages, including value wines and premium organic wines. Interest in alcoholic beverages is primarily driven by the growing number of multicultural consumer groups and the prevalence of social media.
The growing popularity of pubs and nightlife among millennials has led to a significant increase in retail spending on organic wines and other alcoholic beverages. Millennials also tend to attend breweries, social events, and social gatherings. Breweries are responding to the growing trend among millennials to be social by hosting quiz nights and themed events, boosting sales of alcoholic beverages such as organic wine. Millennials account for most of the global demand for various types of wines, especially spiced organic wines, which will have a positive impact on the growth of the market.
The increasing distribution of organic wines through duty-free retail stores is a key trend influencing the organic wine market growth. Duty-free retailers sell wine and other beverages, especially at airports. This is a major trend in the market these days. Wines purchased at duty-free retailers, including organic wines, are tax-free and cheaper. Travelers generally prefer to purchase alcoholic products such as wines and spirits at airport duty-free shops. This is because brands are easily accessible at lower prices than local retailers.
Airport retail is growing in popularity around the world, and most major airports are being retrofitted to support large dedicated spaces for retail stores and shopping malls. Other factors, such as two-hour check-ins, flight delays, and last-minute shopping, also increase market revenue. Bringing a major brand owner into your duty-free store gives you a significant operational and profitable capability over other duty-free stores. Therefore, the availability of duty-free retail outlets is expected to drive market growth during the forecast period.
Stringent government regulations are challenging the organic wine market growth. Organic wine production and labeling are subject to stringent regulations set by various governing bodies of various governments. These regulations can have a negative impact on the growth of the market. In the United States, all organic alcoholic beverages must meet the regulations of the Alcohol and Tobacco Tax and Trade Board (TTB) and the United States Department of Agriculture (USDA). According to the TTB, all alcoholic beverage labels must be validated through the label Approval Application Process (COLA).
In 2012, the European Union issued new regulations for the production and labeling of organic wines with the new EU logo. According to the new regulations, sorbic acid and desulphurization are not allowed, and the sulfite content of organic wines must be at least 30-50mg less per liter than their traditional counterparts. All these factors are likely to hamper the growth of the market.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Organic Wine Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Avondale: The company is involved in the production and marketing of hand-crafted premium-quality wines. It also offers different varieties of organic wines.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the organic still wine segment will be significant during the forecast period. Organic still wine is one of the most consumed and readily available types of alcoholic beverages in the world. Organic still wine refers to wines that are not bubbly. They are made by fermenting grape juice. Red and rosé wines are popular still wine varieties. The amount of color removed from the grape skins during processing determines the color of the wine. France, Spain, the USA, and Italy are the four largest rosé wine producers in the world.
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The organic still wine segment was valued at USD 5,945.35 million in 2017 and continued to grow until 2021. Organic still wines are expected to see an increase in consumption due to the availability of multiple spices and fruit-inducing variants. Also, in the product description, the seller indicates the food that goes with the wine. For instance, Dishes that go well with Vinho Carignan include lamb, red meat roasts, and aged cheeses. Similarly, King Estate Winery offers organic wine, which is enhanced with fruit flavors such as white peach, pineapple, and grapefruit. Consumers love to consume these flavored organic still wines with meals on a regular basis. Therefore, the availability of such fruit-flavored organic still wines is expected to drive the growth of the segment during the forecast period.
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Europe is estimated to contribute 35% to the growth of the global organic wine market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in the European region is still considered a niche market but has significant growth potential during the forecast period. Vendors in the market are likely to generate greater ROI with proper marketing strategies and a focus on new product launches during the forecast period. The demand for organic wine is increasing in Europe and is expected to remain high throughout the forecast period. The total area of ??organic vineyards in Europe is increasing, and the region is the world's largest producer of organic wine. Major European importers of organic wines include Norway, Sweden, Finland, Denmark, Germany, Great Britain, Switzerland, and Austria. Countries such as France, Italy, and Spain produce most organic wines domestically, so very little is imported. The country has seen an increase in lounges and bars due to the growing consumer preference to spend money on parties and clubs. Increasing consumption of alcoholic beverages such as wine and beer by women has improved the growth prospects of the market. Millennials are the primary consumers of traditional and organic wines, willing to spend money on quality wines and try popular wine blends.
In the first half of 2020, after the outbreak of the COVID-19 pandemic, the organic wine manufacturing industry was temporarily shut down, unable to meet the demand for organic wine. Weakening economic conditions and supply chain disruptions hampered the growth of the market. However, in 2021, a massive COVID-19 vaccination campaign across the world led to the reopening of suppliers' factories, warehouses, and other facilities. This allowed local suppliers to meet consumer demand for organic wines.
The organic wine market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global organic wine market as a part of the global distillers and vintners market within the overall food and beverages sector. The distillers and vintners market includes distilleries, winemakers, and producers of alcoholic beverages such as wines, spirits, and liqueurs. The stills and winemakers market is also segmented by manufacturing processes such as fermentation and distillation. The market does not include manufacturers of storage and dispensing equipment.
Organic Wine Market Scope |
|
Report Coverage |
Details |
Page number |
154 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.57% |
Market growth 2023-2027 |
USD 5,019.97 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.5 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 35% |
Key countries |
US, China, France, Italy, and Germany |
Competitive landscape |
Leading vendors, market positioning of vendors, competitive strategies, and industry risks |
Key companies profiled |
Avondale, Banfi S.r.l., Boutinot Ltd., Bronco Wine Co., Casella Wines Pty. Ltd., Charlie and Echo, Dry Farm Wines, Emiliana Organic Vineyards, Frey Vineyards, Grands Vignobles En Mediterranee SARL, GRANDS VINS JEAN CLAUDE BOISSET, Grgich Hills Estate, Harris Organic Wines, Jackson Family Wines Inc., King Estate Winery, Organic Wine Pty Ltd., Radford Dale Pty Ltd., The Organic Wine Co., Vina Concha y Toro SA, and Vintage Roots Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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