Insight of the Day: What do consumers really think about organic wine?
- InsightTrendsWorld
- Dec 19, 2024
- 7 min read
Detailed Findings:
Organic Vineyard Growth: Certified organic vineyard surface area increased by an average of 13% per year globally from 2005 to 2019, according to OIV statistics.
Drivers for Organic Viticulture: Wineries are adopting organic and sustainable practices due to pressure from major buyers, environmental concerns, and potential consumer demand.
US Consumer Profile: US consumers interested in "green" products, including organic wine, tend to be younger, more educated, live in specific areas, and are driven by both environmental and personal health concerns.
Wine's Position in "Green" Choices: Wine is perceived as somewhere between food (more health-focused) and cleaning products (more environmentally focused) in terms of consumer motivations for choosing organic.
Limited Dedicated Organic Wine Buyers: Only a small percentage of consumers (likely not in double digits) will exclusively buy organic wine.
Organic as a Tie-Breaker: When faced with two equally attractive wines, consumers may use organic or sustainable certification as a deciding factor.
Opportunity in Wellness Trend: Growing interest in wellness in the US presents an opportunity for organic wines, aligning with the trend of reduced additives and sugar.
German Market Research: Geisenheim University conducted surveys in 2009, 2016, and 2020 to assess consumer attitudes towards organic wines in Germany, Europe's biggest organic food market.
Highly Involved Consumers Prefer Organic: The research found that highly involved wine consumers with more disposable income are more likely to choose organic wines.
Key Takeaway:
While a niche market, the demand for organic wine is growing, driven by younger, more educated consumers who are concerned about health and the environment; however, organic certification is more likely to be a tie-breaker for consumers already interested in wine, rather than a primary driver of purchase for the majority. There is also potential for growth as the interest in wellness increases.
Trend:
Growth in Organic Wine Production: Wineries are increasingly adopting organic and sustainable viticultural practices.
Consumer Interest in "Green" Products: There's a growing segment of consumers who are interested in environmentally friendly and health-conscious products, including wine.
Organic as a Differentiator: Organic certification can be a point of differentiation for wines, particularly among highly involved consumers.
Consumer Motivation:
Environmental Concerns: A desire to support sustainable and environmentally responsible practices.
Health and Wellness: Perception that organic wines are healthier or contain fewer additives.
Taste and Quality (for some): Highly involved consumers may associate organic with higher quality or better taste.
What is Driving the Trend:
Pressure from Major Buyers: Large buyers, like Systembolaget, are pushing for more sustainable practices in the wine industry.
Growing Awareness of Environmental Issues: Consumers are becoming more aware of the environmental impact of agriculture and wine production.
Increased Interest in Health and Wellness: Consumers are increasingly seeking out products that align with their health goals.
Marketing and Promotion of Organic Wines: Increased visibility and promotion of organic wines are raising consumer awareness.
Motivation Beyond the Trend:
A desire to support ethical and sustainable businesses.
A perception that organic products are of higher quality.
A way to align purchasing decisions with personal values.
Who are the people the article is referring to?
The article primarily focuses on wine consumers, particularly those in the US and Germany. It also refers to wine producers, researchers (Christian Miller, Prof Gergely Szolnoki), and major wine buyers.
Description of Consumers, Product, or Service the Article is Referring to and What is Their Age:
Consumers: Wine consumers, with a particular focus on those who are interested in "green" or organic products. These consumers tend to be younger, more educated, and have higher disposable income.
Product: The article focuses on wine, specifically organic wine and wines produced using sustainable viticultural practices.
Service: The article refers to research and analysis services related to the wine market and consumer preferences. It also mentions Demeter as a service that certifies biodynamic products.
Conclusions:
The organic wine market is growing, but it remains a niche segment.
Organic certification is more likely to be a tie-breaker for consumers already interested in wine than a primary driver of purchase for most.
Highly involved wine consumers with higher incomes are more likely to choose organic wines.
The growing interest in wellness presents an opportunity for organic wines.
Implications for Brands:
Highlight Organic/Sustainable Practices: Clearly communicate any organic or sustainable certifications on labels and marketing materials.
Target Highly Involved Consumers: Focus marketing efforts on wine enthusiasts and those with a strong interest in wine.
Emphasize Quality and Taste: Ensure that organic wines meet or exceed consumer expectations for quality and taste.
Connect with the Wellness Trend: Position organic wines as part of a healthy and balanced lifestyle.
Educate Consumers: Provide information about the benefits of organic and sustainable viticulture.
Implication for Society:
Potential for more sustainable and environmentally friendly practices in the wine industry.
Increased availability of organic wine options for consumers.
Growing awareness of the connection between agriculture, the environment, and personal health.
Implications for Consumers:
More choices in terms of organic and sustainably produced wines.
Greater access to information about organic wine production.
Potential for higher prices for organic wines.
Implication for Future:
The organic wine market is likely to continue to grow, driven by increasing consumer demand and pressure on producers to adopt sustainable practices.
The connection between organic wine and the broader wellness trend may become stronger.
Further research will be needed to understand evolving consumer preferences and the long-term impact of organic viticulture.
Consumer Trend:
Growing Interest in Organic Wine: A segment of consumers is increasingly seeking out organic wine options.
Sustainability as a Purchase Driver: Environmental and health concerns are influencing wine purchasing decisions for some consumers.
Consumer Sub-Trend:
Organic as a Tie-Breaker: Consumers may use organic certification as a deciding factor when choosing between similar wines.
Big Social Trend:
The Conscious Consumerism Movement: Consumers are increasingly making purchasing decisions based on their values and the ethical and environmental practices of brands.
The Wellness Trend: A growing focus on health and well-being is influencing consumer choices across various categories, including food and beverages.
Local Trend:
Germany's Strong Organic Market: The article highlights Germany as a major market for organic food and a country where consumers have a high level of trust in organic certifications.
Worldwide Social Trend:
Globalization of Sustainability Concerns: Environmental concerns and the demand for sustainable practices are global phenomena, impacting industries worldwide.
Name of the Big Trend Implied by Article:
The Rise of Organic Wine or The Greening of the Wine Industry
Name of Big Social Trend Implied by Article:
Conscious Consumerism or The Wellness Movement
Social Drive:
Environmental Responsibility: A desire to minimize one's environmental impact through purchasing decisions.
Health and Well-being: A focus on personal health and a preference for products perceived as healthier.
Ethical Consumption: A desire to support businesses that align with one's values.
Learnings for Companies to Use in 2025:
The organic wine market presents a growth opportunity, particularly among highly involved wine consumers.
Organic certification can be a differentiator and a tie-breaker for consumers.
Connecting organic wine to the broader wellness trend can increase its appeal.
Consumer education about organic and sustainable viticulture is important.
Strategy Recommendations for Companies to Follow in 2025:
Obtain and promote organic or sustainable certifications.
Target marketing efforts towards highly involved wine consumers and those interested in "green" products.
Emphasize the quality, taste, and health benefits of organic wines.
Educate consumers about the environmental benefits of organic viticulture.
Develop a strong brand story that connects with consumer values.
Ensure that the organic wine is of equal or better quality than non-organic offerings.
Final Sentence (Key Concept):
While still a niche market, the growing interest in organic wine, driven by younger, educated consumers and fueled by environmental and health concerns, presents a valuable opportunity for wineries to differentiate themselves and connect with the broader wellness trend, particularly by emphasizing quality, leveraging organic certification as a tie-breaker, and educating consumers about the benefits of sustainable viticulture.
What Brands & Companies Should Do in 2025 to Benefit from the Trend and How to Do It:
Wine brands and companies should invest in obtaining and prominently promoting organic and sustainable certifications, while also focusing on educating consumers about the benefits of these practices, targeting marketing efforts towards highly involved wine enthusiasts and those interested in wellness, and ensuring that their organic offerings meet or exceed quality and taste expectations to capitalize on the growing, albeit still niche, demand for organic wines.
How to do it:
Certification and Production:
Obtain Organic Certification: Pursue organic certification from recognized bodies (e.g., USDA Organic in the US, EU Organic in Europe).
Explore Biodynamic Certification: Consider biodynamic certification (e.g., Demeter) to appeal to highly involved consumers.
Adopt Sustainable Practices: Implement sustainable viticultural practices beyond organic requirements, such as water conservation, biodiversity promotion, and renewable energy use.
Ensure Quality: Maintain high standards of quality and taste in organic wine production to compete with conventional wines.
Marketing and Communication:
Highlight Certifications: Prominently display organic and sustainable certifications on labels and marketing materials.
Educate Consumers: Provide information about the benefits of organic and sustainable viticulture through websites, social media, and in-store materials.
Tell the Story: Share the brand's commitment to sustainability and the unique aspects of their organic practices.
Target Specific Demographics: Focus marketing efforts on younger, more educated consumers who are interested in "green" products and wellness.
Emphasize Taste and Quality: Reinforce the message that organic wines can be just as delicious and high-quality as conventional wines.
Distribution and Retail:
Partner with Retailers: Collaborate with retailers that specialize in organic or natural products.
Secure Prominent Placement: Ensure that organic wines are prominently displayed in stores.
Offer Tastings and Events: Organize tastings and events that showcase organic wines and educate consumers.
Pricing and Value:
Competitive Pricing: While organic wines may command a slight premium, strive for competitive pricing within the organic segment.
Communicate Value: Clearly articulate the value proposition of organic wines, emphasizing the environmental and potential health benefits.
By implementing these strategies, wine brands can take advantage of "The Rise of Organic Wine" and "The Greening of the Wine Industry." They can appeal to consumers who are interested in "Organic Wine" and for whom "Sustainability is a Purchase Driver." They can market their products as part of "The Conscious Consumerism Movement" and "The Wellness Trend" while emphasizing that, for their target audience, "Organic [is] a Tie-Breaker" when it comes to choosing a wine.
Opmerkingen