OVERVIEW OF THE ORGANIC WINE MARKET

Organic wine industry is booming fast since the last 15 years now. Bringing a new approach to the vineyard without chemicals pesticides or fertilizers, and by using a minimum intervention to produce a wine as close as possible to nature and earth.

We will try to synthesis the organic wine market in the world and to have a global view in figures, even if it is really difficult to find recent data regarding the size of organics vineyards per country.

Organic Vineyard

Below a chart which sums up: the difference about regulation in term of maximum use of SO2 during vinification, the pourcentage of the organic vineyard in the country and finally the organic wine label used on their local market.

Organic Chart

European organics wines are not really recognized as organics within the USA and must add  “wine made from organic grapes”.Some countries like Chile or South Africa do not have a specific organic label.

Even if organic vineyards represents a small volume for some of these countries, almost 100% of New Zealand and 95% of South African vineyards are certified sustainable. The goal of New Zealand is to achieve 20% of industry certified organic by 2020.

Top 3 of countries of organic lands in hectares (not in % of their vineyard) in 2016:

  • Spain: more than 100 000 hectares
  • Italy: around 85 000 hectares
  • France : around 70 100 hectares

These 3 countries represents 73% of all organic vineyard in the world. Soon, China will become the 1st in term of area with an important part of its vineyard in conversion.

In term of market:

35% of European drinks organics wines with 51.2% in Sweden.

In UK, sales of organic beers, wines and spirits represents £6 million (around €6.8 million) and rose by 14.3 per cent in 2016. Some supermarket adapts itself like Aldi which launched its first ‘green wines’ collection in early April.

Germany and Northern Europe have traditionally led the European consumption. In spring 2016, in Sweden Systembolaget reached the strategic 10% goal of having their assortment certified organic, that was initially set for 2020. This shows how strong the organic trend is and that it already exceeds expectations.

France has been also a consumer, in 2016 the organic wine market represents € 792 million, +18.2 % compared to 2015.

The USA and Canada have recently become more important markets. US Consumption of organic wines has increased, growing at rates between 10% and 20% per year in volume between 2013 and 2016, according to Nielsen. Even if it is still a niche market representing 2% by value.

In Asia, Japan is a leading market but new ones are growing such as in Singapore or South Korea.

Organic wine grape production in Australia increased 120% between 2011 and 2014, with those grapes reaching a value of $117m (€ 72 million). Even if certified organic or biodynamic wines exported from Australia are a niche but growing export segment that was worth AUS $12 million in 2016 (around €8 million).

The trend is here, even if it seems low for now. But in a world where business is looking for growth with two digits, there it is: Future will be green and this is a good news!

Sources: too many, do not hesitate to ask at: diva@divawine.com