The organic wine market - United Kingdom

1.1 Definition and scope of the study

Wine is an alcoholic beverage obtained after the fermentation of grapes. The most known and consumed types of wines are red wine, white wine and rosé. Wine can be segmented based on origin, denomination, but also according to grape variety.

This study focuses in particular on organic wines, which are distinguished by the viticulture and the processes used in their production. No artificial treatments or insecticides are allowed and a reduction in quantities at the time of vinification is preferable. Acidification and the addition of tannins and sulphur are allowed, but in smaller proportions. For example, the standards in force in Europe stipulate the use of 160 mg/litre of sulphur for a conventional wine, compared to 100 mg/litre for an organic wine, 70 mg/litre for a biodynamic wine (Demeter) and 30mg/litre for a natural wine (Natural Wine Association).

The world consumption of wine reaches 32 billion bottles per year, dominated by the consumption of the United States and France, with a consumption of 4.7 billion and 3.7 billion bottles per year respectively. World wine consumption has increased in recent years to reach nearly 300 million hectolitres in 2019. In this context, organic wine remains relatively small; by 2022 the global consumption will be 1 billion bottles. [beveragedaily]

Moreover, for the wine giants, the challenge remains to establish themselves in emerging markets. China, for example, is expected to account for more than two-thirds of global growth in this market by 2020.

The global market continues to be dominated by large producer conglomerates. Recently, however, independent wineries have managed to establish themselves in niche markets, appealing to consumers through their distinctive flavor. Meanwhile, the wine sector is becoming more concentrated with the completion of numerous mergers and acquisitions.

Forbes reports that the typical organic wine consumer in the UK is based in metro areas (and London in particular) and pertain to the high-income class. Moreover, organic wine is pricier than its’ traditional counterpart: consumers in the UK pay on average 38% more for a bottle of organic versus non-organic wine and buy considerably more red wine than white/rosé (60% versus 40%).

Most of the organic wine consumed in the UK is imported. However, there are local players with certified vineyardsincluding Albury, Davenport, Seddlescombe, Oxney, Ancre Hill, Sunnyhill vineyard, Forty Hall, Laverstoke Park and Bridewell.