Study Predicts Good Growth For Organic Wines, But Limited To Niche Market

According to a new report published on Friday by the wine and spirits consultancy IWSR, the rising trend among consumers of preferring to consume environmentally better pesticide-free wines will in the next five years, will result in rapid growth in the global market for organic wine. However, the report also states that the market share of the total global wince market for the organic wines would be relatively small.

The report forecast that by the year 2022, the total sale of globally for organic wine would be more than a billion annually which would be significantly higher than the 676 million bottles sold throughout the world and almost three times the 349 million bottles that were consumed in 2012.

The driver for the global growth in this form of wine would be the United States with an over 14 per cent growth for the five year period from 2017 to 2022 and ow3uld be followed by an anticipated 13.5 per cent growth in sale of organic wine in South Africa. Norway would come in at third place with almost the same growth rate as that of South Africa.

However the IWSR said that compared to the total volume of sale of wines in the world globally every year, the anticipated market share for organic wines – derived from grapes that are cultivated in fields that do not use any form of chemical pesticides or fertilizers at all, would be only about 3.6 per cent globally.

There is a big margin for organic wine to keep rising,” Jose Luis Hermoso, research director at IWSR said talking about the report.

He said that the very positive signals for the organic wine industry is a welcome news of the global wine industry, given that there has been a stagnancy in global demand for wine and there has also been declining trends in some of the critical markets such as France and Spain.

Europe consumed almost one out of every five bottles of organic wine that were sold globally last year. The main leading count4ries that consumed most of such wine included Germany, France and the UK. IWSR said that consumers in these three countr4ies combined accounted for about 50 per cent of the total European market for organic wine.

The report noted that within the Europe, there would be significant increase in demand for organic wine in France where this form of wine is to capture a share of 7.7 per cent of the total wine market by 2022.

Last month, certification as organic wine was won by Chateau Latour, which is one of the most prestigious Pauillac chateaux in the Bordeaux region and is owned by the French billionaire Francois Pinault since 1993.

But organic projects have been abandoned by some producers of grapes mainly because they have often had to face severe and growing criticism for making use of alternatives to chemical pesticides such as copper and sulphur which are permissible chemical according to the organic farming rules. Many of he producers also had to face losses because their vineyards, left unprotected, had been completely destroyed by fungi attacks.

(Adapted from Reuters.com)

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Categories: Creativity, Economy & Finance, Entrepreneurship, Strategy, Sustainability, Uncategorized

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