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Organic Wine Market – Increasing Trend of Outsourcing to Open New Avenues for Growth

 Organic grapes are cultivated in vineyards on the principles of organic farming. The aging process is employed to lend the wine, obtained from the grapes, a fine taste. It is the most preferred alcoholic beverage among the consumers. Organic wine can be used as a medicine due to presence of resveratrol that prevents aging and helps to fight with the diseases.

In most parts of the world, sulfite is employed in some amounts for stabilizing and improving the shelf-life of wine. Organic wine can be classified into three categories such as 100% organic wine, organic wines (95% of its ingredients from certified organic sources, which may have an additional 100 ppm of sulfur dioxide added to them) and wines made from organic grapes (70% of its grapes are from organic sources).

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Based on the product type, the organic wine market can be segregated into red wine, white wine, rose wine, sparkling wine, dessert wine and fortified wine. In terms of distribution channel, the organic wine market can be segregated into online distribution and offline distribution. Organic wines are purchased primarily in hypermarkets and supermarkets. Such products of organic wine are certified by different certification bodies all over the globe to be organic such as USDA, EU organic Certification, and California Certified organic farmer’s certification.

The global organic wine industry is witnessing significant expansion for the last ten years. Rising number of organic vineyards is a key driver of the market. Increasing demand for organic wine has also led to an increase in the production of organic grapes across the globe. Wine has been always a preferred choice for celebration or parties. Currently, awareness about the presence of hazardous chemicals in food and beverages and health consciousness is rising among consumers. Thus the organic sector is witnessing an increase in investments from private investors as well as the government in the last few years.

Some of the restraints of the market are high price of organic products and the low shelf-life when compared to conventional wine. Retailer indifference has played a key role in the poor acceptance of organic wines. These wines are often found in organic sections set off from the rest of the wine. Furthermore, differing standards and regulations regarding organic wine is likely to hinder the expansion of the global organic wine market.

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Europe accounts for around 70% of global organic wine production. Italy, France, Sweden, U.K. and Spain are the leading manufacturers of organic wine. Organic wines made in Italy have better quality as compared to the wines produced in other countries. In North America, the U.S. as well as Canada witnessed a significant rise in the consumption of organic wines. Additionally, revenue generated by the export of organic wines from Italy is anticipated to rise remarkably due to rise in exports to countries such as U.S. and other European countries during the forecast period. In Asia Pacific, Japan, Singapore, Australia, South Korea, China, and India have shown good progress in organic wine consumption. Developing nations in the region are likely to present better growth potential in organic wine sector.