The business of organic wine

Organic and biodynamic wines still represent a niche category, but that is expanding fast. We explore here the category overview, what is driving growth as well as what the future holds for the category.

The Numbers

  • Wine as a category is down 3% in dollars and 5% in volume
  • Organic wine trend is +3%

Nielsen – Total XAOC – 52 weeks ending 12.31.2022

+23%

Organic wine market share in most mature market- Swede

+10.7% projected growth of Organic wines market 2021 to 2027

1%

Organic wine market share in US = HUGE GROWTH POTENTIAL

Source: TechNavio 5.11.22 *Grandview Research

What’s Driving Growth

  • A globalization in style, taste & lifestyle: Eco-trends that started in Europe have spread to other parts of the globe.
  • The growing emphasis on a “Healthy” lifestyle with products that contain fewer additives and chemicals.
  • Sadly, climate change is bolstering sales of “good for the environment” products.
  • Consumers buying eco- and socially responsible products in one category, such as food, will generally seek out similar products in other categories.

2-8-23

  • Availability: The advent of retailers catering to this trend, such as Whole Foods and Trader Joe’s as well mass retailers as Costco & Kroger.
  • Quality: “It doesn’t taste organic!” A significant number of early organic wines, made by idealistic were “funky”. Today, there are bright, beautiful, fresh-tasting wines.
  • Ratings: Those 90pt scores help sell wine!
  • Price: In the US, 95% of wines sold are between $10-$25 retail. Most organic wines fall into this category.

“We are bullish on the future of eco-sustainable wines because of our own experience. In the 25 years since we started, our business has at least doubled every year! Some years we sold five times as many cases as the previous 12 months. Five years ago, for example, we were number 70 in terms of volume (of all Argentinean wines sent to the US., whether organic or not) exported to the U.S., in 2022, we were #9. However, we also strongly believe that just being “organic” doesn’t work. Consumers shop on price AND want a great experience.”

Anne Bousquet & Labid al Ameri

What’s in the Future:

  • Currently most organic wines are in the medium price segment, around $10 and up. As confidence in the quality of organics grows, consumers will be willing to trade up.
  • Ever “purer:” Producers farming sustainably will move to organic and organic producers will go biodynamic or Regenerative Organic from organic production.
  • More information on labels: Ten years ago, did you see a label touting the wine as vegan? Many wine producers never used animal products to begin with, but they are now announcing the fact. Discussions on sulfite amounts are now mainstream. Can histamine level labeling be on the horizon?