Organic Wine Market Size (2024 – 2030)

The Organic Wine Market was valued at USD 27.8 billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 55.92 billion by 2030, growing at a CAGR of 10.5%.

Organic wine is produced using grapes that have been cultivated without the application of synthetic fertilizers, pesticides, fungicides, or herbicides. Adopting organic farming methods ensures the creation of regulated, certified, safe, and high-quality food products, while also delivering notable economic and environmental advantages and fostering a healthy ecosystem. The increasing consumer preference for organic foods is driving the rapid expansion of the organic wine market.

Key Market Insights:

The expansion of the organic wine market is being propelled by heightened consumer awareness regarding mindful eating and drinking practices, increased disposable income, and growing environmental concerns. Modern lifestyles and evolving social values have contributed to a surge in demand for organic beverages, including organic wine. Advances in digital technology that facilitate access to a diverse range of products have further stimulated interest in organic wine. Available in various flavors and packaging options—such as red, white, and rosé wines in different-sized bottles and cans—organic wine now offers a broader selection for consumers. Additionally, government initiatives supporting sustainable farming practices have boosted organic wine production. The greater availability of organic wine, combined with heightened awareness of its benefits, is significantly driving its demand.

Organic Wine Market Drivers:

Increasing Preference for Organic Products Drive Market Growth.

The global organic wine market is expected to grow due to an increasing preference for organic products. This demand is driven by the restaurant and retail sectors worldwide. Rising interest in organic products is attributed to their reduced use of pesticides and insecticides. The growing health-conscious population is increasingly turning to organic foods and beverages. Organic wine, being naturally sustainable and more environmentally friendly compared to conventional wine, is experiencing a surge in consumption. This trend is further accelerated by the adoption of sustainable winemaking practices. Additionally, the introduction of new products and production techniques is anticipated to boost market demand.

Rise in Wine Consumption to Surge Market Demand.

The rapid rise in demand for organic wine is largely attributed to the growing global consumption of wine. This increase in wine consumption is a significant driver of market growth. The younger and working populations across various regions are incorporating wine into their regular diets, social gatherings, and occasional events. On-premise restaurants and supermarkets are also expanding their wine selections and availability. Additionally, shifting consumer tastes and preferences, along with a desire to explore new and exotic flavors, are expected to further stimulate market demand.

Market growth for organic wine is anticipated to face challenges due to high production costs and the lack of stringent regulatory oversight. Organic viticulture generally incurs higher costs compared to conventional methods, resulting in more expensive wines. Additionally, the absence of preventative treatments for pests and diseases can lead to severe crop damage from adverse weather, fungal infections, or pests. Consequently, organic viticulture is more prevalent in warm, dry regions and less common in cooler, wetter areas.

The certification process for organic wine can be costly, leading many smaller producers to forgo certification despite maintaining organic practices. Without certification, these producers cannot use official labels to verify their methods. Furthermore, there are no legal constraints on labeling wines as "natural," allowing companies to market their products as such without adhering to specific production standards. To ensure that a wine is genuinely organic, consumers are advised to look for bottles labeled as organic or biodynamic. These labels indicate adherence to established standards for organic production and provide consumers with more detailed information about the wine's ingredients.

Organic Wine Market Opportunities:

Organic wine production incurs higher costs compared to conventional methods. Organic wines are made from grapes that are cultivated using natural and organic practices. For vineyards to be certified organic, they must adhere to specific standards and be meticulously maintained. Organic vineyards avoid the use of pesticides and agrochemicals to enhance yield and productivity, which results in a longer maturation and ripening period for the grapes. Moreover, employing natural yeasts for fermentation is more costly than using wild or standard yeasts. These factors collectively contribute to the increased production costs of organic wine, thereby elevating its price.

ORGANIC WINE MARKET REPORT COVERAGE:

Organic Wine Market Segmentation: By Type

• Red Organic Wine

• White Organic Wine

The red organic wine segment currently leads the organic wine market, representing 62% of total sales. Red organic wines are made from the fermentation of red or black grapes with yeast, all cultivated in organically certified vineyards. The majority of these vineyards are located in Europe, with Italy, France, and Germany being the primary producers of organic wines.

The white organic wine market is projected to grow at a CAGR of 10.1%. Although white organic wines are consumed less frequently than red organic wines, Chardonnay Champagne remains one of the most popular white wines globally. Germany is the largest market for white organic wine, with about 35% of its wine coming from the country’s 100,000 hectares of vineyards. French and Italian wines account for approximately 15 to 18 percent of the white organic wine market.

Organic Wine Market Segmentation: By Packaging

• Bottles

• Cans

The bottles category is the dominant segment in the organic wine market, representing 92% of total sales. Glass bottles are the preferred packaging for organic wines and are widely used in beverage packaging due to their recyclable, reusable, and inert properties. Glass is the third most popular packaging material globally and is favored for its ability to preserve wine over long periods, unlike plastic bottles and cans.

The cans segment is projected to grow at a CAGR of over 14% during the forecast period. The use of cans, particularly metal ones made from steel and aluminum, is increasing in the beverage industry. Cans are becoming more popular for wines due to their portability and convenience. Aluminum cans, being lighter than glass bottles, contribute to reduced carbon dioxide emissions during transportation from vineyards to distributors. This shift towards cans aligns with the growing demand for environmentally friendly organic wine packaging.

Organic Wine Market Segmentation: By Distribution Channel

• Supermarkets

• Hypermarkets

• Convenience Stores

• Online Retail

The supermarket is the leading distribution channel for organic wines, largely due to the increasing prevalence of supermarkets and hypermarkets in developed countries. Additionally, the online segment is experiencing substantial growth and is expected to remain a key area of expansion in the global organic wine market throughout the forecast period.

Organic Wine Market Segmentation- by Region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

Europe leads the global organic wine market, accounting for over 75% of revenue. A few European countries hold more than 50% of the market share, with Germany being the top consumer of organic wine. Germany, France, and the U.K. are the leading markets, contributing approximately 25%, 15%, and 10% of global organic wine consumption, respectively. Europe remains the largest market for organic wine due to higher consumer awareness and preference for organic products in the region.

In North America, the organic wine market is projected to grow at a CAGR of over 9.5% in terms of value. North America is the second-largest market for organic wines, and is expected to experience significant growth driven by increasing organic wine consumption and the rise in the number of lounges and bars. Additionally, evolving lifestyles and the influence of social media are positively impacting the growth of the organic wine market in this region.

COVID-19 Pandemic: Impact Analysis

Latest Trends/ Developments:

• In May 2022, PiWOSA (Premium Independent Wineries of South Africa) expanded its membership to include Avondale Wine Estate, bringing the total number of members to twelve. PiWOSA is a collective of independent wine producers committed to promoting high-quality South African wines internationally.
• In April 2022, King Estate Winery quickly sold out of its limited edition Onip Pinot Gris within just four days of its release. This special release was designed to support Ukrainian rescue organizations, with the term "Onip" referencing the Ukrainian word for resistance. This initiative marked King Estate's second contribution to Ukrainian relief efforts. Previously, on March 4, King Estate announced a donation of $50,000 to CARE, Save the Children, and Voices for Children, three organizations providing aid to the region.

Key Players:

These are top 10 players in the Organic Wine Market :-

1. La Cantina Pizzolato

2. Xinjiang Tianshan WineryCo.Ltd.

3. Frey Wine

4. Emiliana Organic Vineyards

5. Bronco Wine Company

6. King Estate Winery

7. The Organic Wine Company

8. Kendall-Jackson Winery

9. Elgin Ridge Wines

10. Harris Organic Wine