Organic Wine Market Size, Share, Industry, Forecast and outlook (2024-2031)

Organic Wine Market is Segmented By Type (Red Organic Wine, White Organic Wine), By Packaging (Plastic Bottles, Aluminum bottles, Glass Bottles, Cans, Tetra Pak, Others), By Distribution channel (Supermarket, Specialty Stores, Online platforms, Bars, Restaurants, Hotels), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Organic Wine Market Size

The Global Organic Wine Market reached US$ 10.5 billion in 2022 and is expected to reach US$ 25.0 billion by 2031 and is expected to grow with a CAGR of 11.5% during the forecast period 2024-2031. The primary difference in how organic wine is defined relates to the use of preservatives, specifically sulfur (sulfur dioxide, sulfites, SO2) during the winemaking process. 

Global Organic Wine Market is made from grapes grown according to organic farming principles, which typically excludes the use of artificial chemical fertilizers, pesticides, fungicides, and herbicides. There are an estimated 1500–2000 organic wine producers globally, with more than 885 organic domains in France alone. The legal definition of organic wine varies from country to country. The organic wine market has seen a rise in specialized wine brands and niche segments. For instance, there are organic wineries that focus on producing biodynamic wines, which go beyond organic farming principles and incorporate holistic approaches to vineyard management based on lunar cycles and cosmic influences.

Organic Wine Market Trends

The Growing Interest of Consumers in Organic Wines is Driving the Market

The growing interest in organic wines is driving an expansion of organic farmland dedicated to grape cultivation. For instance, according to the International Federation of Organic Agriculture Movements (IFOAM), the total area of certified organic vineyards worldwide has been steadily increasing. This indicates a rising commitment from grape growers to transition to organic practices to meet the demand for organic wines.

Several wine-producing regions around the world have witnessed a notable increase in organic wine production. For example, in France, which is one of the leading wine-producing countries, the area of vineyards dedicated to organic farming has been expanding steadily. According to the latest report by BKWine Magazine, there are 5,835 organically certified wine estates in France as of 2022. This is an increase of 11% since 2016. The certified vineyard surface is 61,048 hectares, an increase of 4%.

Health and Wellness Consciousness of the Consumers are Driving the Organic Wine Market

The increasing consumer focus on health and wellness has led to a growing demand for organic food and beverages, including wine. According to the Organic Trade Association's 2021 Organic Industry Survey, organic food sales in the United States increased by a record 12.8% in 2020 to a new high of $56.4 billion. Almost 6% of the food sold in the United States last year was certified organic. 

Consumers are gravitating toward products that are perceived as natural, clean, and free from synthetic additives. Organic wines, produced without the use of synthetic pesticides, fertilizers, or genetically modified organisms (GMOs), align with this preference for more natural and authentic products. This interest is reflected in the growth of the clean label movement, where consumers seek transparency and simplicity in product ingredients. 

Limited Availability and Production Challenges are Restraining the Organic Wine Market

The availability of organic wines is influenced by the total acreage dedicated to organic vineyards. According to the 2019 Organic Viticulture Census conducted by the International Federation of Organic Agriculture Movements (IFOAM), the global organic vineyard area represented only a small percentage of the total vineyard area worldwide. This limited acreage indicates a potential constraint on the production and availability of organic wines. 

Transitioning conventional vineyards to organic farming practices requires time and effort. Organic certification typically involves a conversion period during which synthetic pesticides and fertilizers are eliminated from vineyard practices. The length of this conversion period can vary depending on the certification standards and country-specific regulations. This conversion process can limit the immediate availability of organic wines as vineyards undergo the transition.

Organic Wine Market Segmentation Analysis

The global organic wine market is segmented based on type, packaging, distribution channel, and region.

The Use of Plastic Bottles for Packaging is Likely to Grow at a Rapid Rate

The plastic bottles segment is holding the largest market share in the organic wine market due to its lightweight, shatter-resistant, and cost-effective nature. PET plastic is the preferred choice of material for this segment as it is lightweight, easy to handle, and has a wide variety of applications. In recent years, moves have been made to replace glass, which, while being excellent at protecting wine from the ingress of oxygen, is heavy and tends to break. The latest development in the packaging of wine is the appearance of 75 cl (standard-sized) PET bottles on supermarket shelves.

The main driving force behind the adoption of PET is an environmental one, and it has to do with the weight of the bottles, which reduces their carbon footprint through savings in the transport chain. The UK consumes around 1 billion bottles of wine each year, and estimates are that reducing the bottles for all these to the lightest available would save around 90,000 tons of CO2. If this is coupled with bottling in the UK, with the bulk shipment of the wine, the savings are magnified because around twice the volume of wine can be shipped in bulk per container.

Global Organic Wine Market Geographical Share

The European Region Held the Largest Market Share of the Organic Wine Market

Europe has a long-standing history and tradition of organic agriculture, including organic wine production. Several European countries, such as France, Italy, Spain, and Germany, have been pioneers in organic farming and have embraced organic viticulture practices. This early adoption has contributed to Europe's strong presence in the organic wine market.

Europe has a significant share of organic vineyard acreage. According to Eurostat, in 2020, vines were grown on 3.2 million hectares in the EU, equivalent to about 45 % of the world’s total wine-growing areas. This substantial organic vineyard acreage provides a solid foundation for organic wine production and supports Europe's market share in the industry.

Organic Wine Companies

The major global players in the market include The Organic Wine Company, The Wine Cellar Group, King Estate Winery, Dry Farm Wines, Mount Avoca, Organic Wine, Vintage Roots, Tamburlaine Organic Wines, Frey Vineyards, and Elgin Ridge Wines. 

COVID-19 Impact on Organic Wine Market

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis

Covid-19 Impact

During the pandemic, with restrictions on dining out and social gatherings, there has been a shift in consumer behavior towards at-home consumption. This trend could have positively impacted the organic wine market as consumers sought out premium and high-quality wines to enjoy at home. The pandemic accelerated the growth of e-commerce across various industries, including the wine sector. Online wine sales, including organic wines, saw a significant increase as consumers turned to online platforms for their purchases. The convenience and safety of purchasing wines online contributed to this shift in consumer behavior.

Russia-Ukraine War Impact:

Geopolitical conflicts can lead to trade disruptions and restrictions between the countries involved. If trade relations between Russia and Ukraine, or other countries in the region, are affected, it could impact the export and import of organic wines. This could result in a decrease in the organic wine trade and availability in affected markets. Geopolitical conflicts can influence consumer behavior and preferences. In uncertain times, consumers may prioritize local products or products from politically aligned countries, which could impact the demand for imported organic wines. Local wine industries in affected regions may see increased support and market share.

Key Developments

• In October 2022, Suja Life, LLC, a Paine Schwartz Partners portfolio company and the California-based manufacturer of cold-pressed organic juices and juice shots acquired Vive Organic, a brand of immunity-supporting juice shots created by holistic medical professionals.
• In April 2023, an Operationally-focused buyout group, Ronin Equity Partners, created Lotus Beverage Alliance through the simultaneous merger of six companies. The new group has 75 years of combined experience with locations in Lincoln, Nebraska, Ypsilanti, Michigan, Denver, Colorado, Portland, Oregon, and Hopewell Junction, New York. Lotus is a partnership of Alpha Brewing Operations, GW Kent, Twin Monkeys, Stout Tanks, and Kettles, Brewmation, and Automated Extractions.
• In June 2023, Cardinal Health announced that it has signed a definitive agreement to contribute its Outcome business to Transaction Data Systems (TDS), a portfolio company of BlackRock Long Term Private Capital and GTCR, in exchange for a minority stake in the combined entity. Under the terms of the agreement, Cardinal Health's pharmaceutical segment CEO, Debbie Weitzman, will be appointed to the TDS board of directors. 

Why Purchase the Report?

• To visualize the global organic wine market segmentation based on type, packaging, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of organic wine market-level with all segments.
• The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study. 
• Product mapping is available as Excel consists of key products of all the major market players.

The global Organic Wine market report would provide approximately 61 tables, 59 figures and 190 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies