Worldwide organic wine consumption on the increase despite the credit crunch

Canada is the market with the greatest growth potential for this type of product

08/25/2010

Worldwide organic wine maintains consumption rates despite economic adversity © Pablo Neustdat / ICEX

According to a study carried out by the International Organic Accreditation Service, Letis, organic wine consumption on the world market still maintains its growth margin despite the recent years of economic downturn. The consulting firm also highlights Canada as the market with the greatest growth potential for this type of wine, which is made using organic agriculture. In addition, the study, presented last week in Mendoza (Argentina) by Ingrid Clausen, head of the Development Department at Letis, states that the US, most European countries, and Brazil have all registered continuous growth in consumption.

Canada, with a growth rate in wine consumption of 20 percent per annum, is the country with the greatest potential for organic wine sales, representing a turnover of around $2 billion per year. Equally, ever since the US implemented its Organic Law in 2002 to accredit these products, organic wine consumption has also grown by 20 percent per year. However, although it saw this figure drop to 5 percent during the most difficult years of the crisis, analysts point to a return to form and positive figures in the near future. In the US, organic wine sales represent close to $26 billion per year.

As to the European continent, most countries registered an increase in consumption of wines made using organic methods, of between 5 and 15 percent per year. Sweden registered the highest growth rate at 18 percent per year, followed by Holland, 10 percent, Denmark, 8 percent, Italy and Switzerland, 7 percent, and France and Austria, 5 percent.

Germany, the first country to invest in organic wine production, is, together with France and the UK, one of the countries which generates most profits from this type of product. The UK is also one of the few countries which registered a drop in organic wine consumption; in this case of 12 percent owing to the fact that supermarkets withdrew the product for fear that commercial centres would be unable to sell it.

As regards Latin American countries, the Letis study highlights the initiatives being carried out in Brazil to heighten awareness and encourage organic wine consumption, although currently this type of consumption represents very low figures on the South American continent.