The IWSR Organic Wine Report, published this month, includes findings presented at the Millesime Sudvinbio fair earlier this year and forecasts that by 2022 worldwide consumption of still wine will reach 2.43 billion nine-litre cases.
The organic wine subcategory is expected to post the strongest increases (up 9.2% Compound Annual Growth Rate between 2017 and 2022).
The report shows that the total organic area under vine has increased by 234% since 2007 and in 2017 surpassed 400,000 hectares.
“Overall, total still wine volume is increasing slightly but remains largely flat while the organic wine market is forecasted to reach 87.5 million cases by 2022,” said IWSR Chief Executive Mark Meek, “Much of that growth is being driven by Europe which will account for 78% of the global organic wine market by 2022. The Americas will represent about 12% of total organic wine consumption.”
The European Union defines wine as ‘organic’ if it’s produced from organic grapes or from oenological techniques and substances authorised for organic wine. In the US the Department of Agriculture mandates that before wine can be sold as ‘organic’ both the growing of the grapes and their conversion to wine must be certified.
The study also includes a comprehensive analysis of organic wine in several key markets.
Consumers in the UK are paying an average 38% more for a bottle of organic versus non-organic wine and are buying considerably more red wine than white/rosé (60% versus 40% respectively). While overall total wine consumption in the UK is in decline, organic wine is expected to post a CAGR of 9.4% by volume between 2017 and 2022.
About 72% of organic wine in the UK is Old World, with France, Italy and Spain at the forefront.
Organic wine speaks to a broad audience in the country but primarily caters to wealthier wine lovers and/or regular buyers of organic produce as well as those who reside in metropolitan areas (particularly London).
Total still wine consumption is increasing in the US and though still a niche category organic wine is slowly taking share from non-organic.
Total wine volume in the US is forecast to increase by about 1% CAGR 2017-2022, with organic wines expected to post 14.3% growth.
More than 70% of organic wine sold in the US is produced in the US. Organic wine buyers there tend to skew towards female, Millennial and higher income – especially those consumers in major markets who focus on healthy lifestyles and have a preference for natural food and beverage products.
99% of organic wine in France is from French producers and it is gaining strongly, accounting for just under 4% of the overall still wine category.
Total wine in France is forecast to decline by 2.1% (CAGR 2017 to 2022) but organic wine is expected to increase 13.3% to 17 million cases. Distribution of organic wine in France is dominated by medium- and large-scale supermarkets and is making increasing inroads into the on-trade with by-the-glass pouring.
Though Paris is the key driver of the country’s organic wine market, the trend is beginning to spread into other large metropolitan areas and the French countryside, states the report.
Germany is the world’s largest market for organic still wine and has grown strongly since 2012 (at a CAGR of 17.9%). Organic wine accounted for 6% of still wine consumption in the country in 2017 with locally-produced German wine representing approximately 52% of that volume. Organic wine in Germany is purchased by women particularly, consumers over 50 years-of-age and higher earners.
The organic wine market in Japan is relatively well-developed and already represents around 10% of total still wine sales thanks to an average growth rate of 8.2% over the past five years. This is expected to slow to 2022 but the segment will nonetheless considerably outperform the overall category. The vast majority of organic wine in Japan is imported (particularly from France) and is dominated by red wine (84.8% of the category).