Ongoing tracking of consumer sentiment from global beverage market analysts, IWSR, has found concerns over sustainability are increasing, pushing consumers towards wine choices they perceive as better for the environment.
IWSR tracking of ‘natural’ wine takes in Fairtrade, biodynamic, carbon-neutral, sulphate free and cannabis-infused wines, as there is no official definition or regulation of natural wines in most countries.
A perception that these wines are healthier, more sustainable, better tasting and higher quality means that consumers are now willing to spend more on natural wines, especially in the UK and USA.
Almost half (46 per cent) of US wine drinkers say they will always choose a sustainable wine when given a choice. In the UK, consumers with high engagement on sustainability are more likely to be millennials, and in the US, men, millennials and Gen X are the primary buyers of alternative wines.
But alternate wines are gaining traction not just in the UK and the USA. Globally, organic wines grew by +5 per cent volume compound annual growth rate (CAGR) between 2017-2022.
In many markets, the organic wine segment is showing growth while the non-organic non-sparking wine market shows declining or flat performance. In the US, for example, organic wine volumes grew +7 per cent, volume CAGR from 2017-2022, while the non-organic segment is on a long-term downward trend. A similar trend can be seen in the UK, where organic wine volumes grew at a +6 per cent volume CAGR from 2017-2022.
IWSR found concern about products being modified or processed is strongest in Asia, making China a standout potential market for most types of alternative wines.
Chinese wine drinkers are more likely to be affluent, trend-lead and seeking food and wine choices that they perceive as healthy and “wellbeing-enhancing.”
In 2022, China entered the IWSR Global Opportunity Index for Alternative Wines in first place for organic wine and second for sustainably-produced and natural wines.
In 2023, China ranks first for all three wine types, which is also reflected in the market data. For example, China’s organic wine market grew by +8 per cent volume CAGR between 2017-2022.
In the future, increased costs of living in many markets may pose a threat to the alternative wine segment, which is often perceived as more expensive.
IWSR reports that more substantial interest can be generated in markets such as Australia, China, the US and the UK, with better labelling as most consumers only trust claims if they’re backed up with official certification.
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