North America’s thirst for organic wine fuels market boom
Driven by health trends and sustainable farming, the organic wine market in North America is set to more than double in value by 2028.
The North American organic wine market is projected to grow from US$1.87 billion in 2022 to US$3.89 billion by 2028, according to new data from The Insight Partners. The forecast reflects a compound annual growth rate (CAGR) of 13% over the six-year period.
The category’s expansion has been attributed to “shifting consumer preferences towards healthier and more sustainable choices”, amid a growing societal awareness of health and environmental issues.
Organic wine, produced without synthetic chemicals or artificial fertilisers, has gained popularity among consumers seeking cleaner-label alcoholic beverages. The increasing interest in health-conscious lifestyles and higher disposable incomes are also helping to drive demand.
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Supportive policies and sustainable practices
Favourable government regulations promoting organic grape cultivation, such as the The Organic Certification Cost-Share Program are also helping to play a role in the category’s growth, according to the report. For example, by implementing programmes such as The Conservation reserve programme which provide financial assistance to establish protective natural borders along fields that produce organic crops, such as field windbreaks, shelterbelts, filter strips, bird and pollinator habitats.
In turn, the report found this has made it more appealing for winemakers and viticulturists to make the transition to organic.
The report highlights that organic wine is benefiting from demand across multiple distribution channels, including food service, supermarkets, specialist retailers and online platforms. Products covered in the study include red and white organic wines, offered in glass bottles, plastic bottles, and cans.
In other markets like the UK and Australia, Millennials are the most engaged demographic, associating organic wines with premium quality and sustainability. This sentiment resonates particularly strongly in the US, where 30% of Millennial wine drinkers link organic wines with high quality – perception shared across other major wine markets.
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