Where will future growth of organic wine come from?

Thursday February 07 2019 by Vitisphere

Torsten Hartmann, the IWSR: “The United States is a country in growth mode where consumers are willing to accept price increases”Torsten Hartmann, the IWSR: “The United States is a country in growth mode where consumers are willing to accept price increases” - Photo credit : Marion Sepeau Ivaldi

The still wine market is expected to grow by a marginal 0.5% over the next 5 years, according to the IWSR, but organic wines will not be affected by sluggish sales. World wine consumption could increase from 56.3 million cases consumed in 2017 to 87.5 million cases in 2022 – when the still wine market is expected to reach 2,426 million cases. This is the IWSR’s forecast in its study carried out for Sudvinbio on the five-year change in organic wine consumption. Four countries currently account for 66% of world consumption in volume terms - Germany, France, Sweden and Great Britain - but which ones offer the best chances in the future?

A 14.5% increase in the USA

The United States appears to be the most promising market in the future, with a consumption growth rate of 14.3% to 8.7 million cases. Overall revenue from organic wines could increase to €8.7 billion in 2022, according to the IWSR. “It is a growing market for still wines with consumers always willing to accept to pay more”, said Torsten Hartmann at a conference held on 29 January at Millésime Bio. He commented that consumers of organic wines are mainly Millennials and women and live primarily in cities. “Major cities such as Los Angeles, Chicago and New York should therefore be targeted”, said Hartmann. The organic wine market is still marginal in the US, with 4.5 million cases consumed in 2017. It is cornered by American wines, which supply 72% of the market, compared to 12% for Italian wines and 6% for French wines. “While American wines will drive consumer growth, there are many opportunities for foreign wines”, said Hartmann.

 

 

 

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