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The organic wine market size is forecast to increase by USD 5.53 billion at a CAGR of 8.76% between 2023 and 2028. The market experiences growth driven by significant trends and consumer preferences. The rising popularity of organic wine tourism contributes to market expansion, reflecting consumers' increasing interest in sustainable and eco-friendly practices. Additionally, the growing demand from millennials, who prioritize health-conscious choices, fuels the adoption of these products. Moreover, the recognized health benefits associated with wine consumption further bolster market growth, emphasizing the appeal of organic options in the wine industry. This dynamic market landscape underscores the importance of sustainability and health-consciousness in driving the global market forward.
It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The global market offers a diverse range of red and white options, available through e-commerce platforms, catering to consumer interest in naturalness and healthiness by eschewing artificial chemical fertilizers, pesticides, fungicides, and herbicides typically associated with conventional wines, instead relying on vineyards with organic certification, employing natural yeasts, and packaged in environmentally friendly glass bottles or aluminum cans, ensuring controlled, certified, safe, and high-quality products derived from vinified grapes grown using organic agricultural production methods. Our researchers analyzed the data with 2023 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 market growth. This demographic segment, comprising a significant portion of the global population, exhibits a growing interest in a diverse range of alcoholic beverages. Particularly in North America, millennials show a heightened preference compared to other regions. With millennials nearly outnumbering baby boomers in the United States, there's a discernible shift towards authenticity in alcoholic beverages, with a notable interest in both value wines and premium organic wines. This trend is fueled by the multicultural composition of consumer groups and the pervasive influence of social media.
Furthermore, the burgeoning popularity of pubs and nightlife among millennials has translated into substantial retail spending on organic wines and other alcoholic beverages. Millennials actively participate in brewery visits, social gatherings, and themed events, contributing to the increased consumption of alcoholic beverages. Notably, millennials are driving the global demand for various wine types, including spiced organic wines, thereby positively influencing market growth.
The market benefits from the emphasis on environmentally friendly practices and the avoidance of artificial chemical inputs such as fertilizers, pesticides, fungicides, and herbicides. This commitment to organic agricultural production ensures controlled, certified, safe, and high-quality food products. Consumers, particularly millennials, are increasingly drawn to the naturalness and healthiness associated with organic products, further propelling the growth of the market.
Significant Market Trends
The increasing distribution of organic wines through duty-free retail stores is a key trend influencing the 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.
Furthermore, 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 market growth. The 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 such 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 these wines with the new EU logo. According to the new regulations, sorbic acid and desulphurization are not allowed, and the sulfite content 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 market forecasting 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 market growth and forecasting strategies.
Market Customer Landscape
Companies 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 research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the organic still wine segment will be significant during the forecast period. The market encompasses the production and sale of Organic still wine. These wines are grown using organic farming practices, such as the absence of synthetic fertilizers and pesticides. Their certification ensures that the grapes are grown in healthy vineyards, resulting in superior-quality wines. They offer consumers a healthier and more sustainable choice, with unique flavors and terroir characteristics. The demand is on the rise, driven by consumers' increasing awareness of the benefits of organic farming and the desire for natural and authentic products.
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The organic still wine segment was valued at USD 6.22 billion in 2018. They 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 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 regularly. 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 34% to the growth of the global 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. Companies 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 red organic wine and white organic wine is increasing in Europe and is expected to remain high throughout the forecast period. The total area of ??these vineyards in Europe is increasing, and the region is the world's largest producer of organic wine. Major European importers include Norway, Sweden, Finland, Denmark, Germany, Great Britain, Switzerland, and Austria. Countries such as France, Italy, and Spain produce most 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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is thriving, driven by consumers' growing concern for environmental and social values and their preference for organic foods. This segment includes red wine and white wine, produced using sustainable practices such as avoiding agrochemicals and embracing native yeasts. Both the Off-trade segment (supermarkets, specialty stores) and On-trade segment (restaurants, hotels) segments play pivotal roles in distributing organic wines, meeting consumer demand in various settings. With an emphasis on specialized goods and nutraceuticals, organic winemakers are innovating to offer diverse options, appealing to a broader audience. As the market expands, considerations like production cost and new flavors become crucial, ensuring the continued growth and accessibility of organic wines.
The market is experiencing a surge, particularly in the red organic wine segment. This growth is evident across both the off-trade and on-trade segments, indicating a broader acceptance and demand for organic wines in the wine business. Unlike conventional wine, organic wine production eschews the use of synthetic additives like sulfur and relies on natural elements such as wild yeasts and yeast nutrition for fermentation. Moreover, organic winemakers cater to diverse preferences, infusing their wines with unique flavors suitable for pairing with various foods, from confectionary to bakery goods. As consumers increasingly prioritize organic food and sustainable practices, the market continues to evolve, highlighting the importance of natural ingredients in winemaking.
Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.76% |
Market growth 2024-2028 |
USD 5.53 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.87 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 34% |
Key countries |
US, France, Germany, Italy, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, 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, Concha y Toro, 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., and Vintage Roots Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, 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 the market 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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