Growth of Organic Wine Surface Area and Production in Spain

Published 2023년 7월 18일

The global organic wine market expanded by 9.2% annually from 2017 to 2022, mainly driven by European consumption. Health consciousness and environmental responsibility are the main drivers of this trend. Italy, France, and Spain are the global leaders in organic wine production. Spain, the third largest producer, is projected to boost production by 75% from 341 million bottles in 2018 to 599 million in 2023 and is expected to lead in organic vineyard area with nearly 160,000 hectares by 2023. Spain's organic wine production has grown exponentially over the past five years, and it is expected to be a key player in production and exports over the next decade. Spain is ideally geographically situated to increase its production of organic wines and satisfy the demands of the three top consumption markets: Germany, France, and the UK.

According to the International Wines and Spirits Record (IWSR) Organic, the global organic wine market grew at an annual compound growth rate (CAGR) of 9.2% from 2017 to 2022, reaching 1.05 billion bottles of wine (750ml) in 2022. Much of that growth was driven by European consumption, accounting for 78% of the global organic wine market in 2022. The Americas represent about 12% of total organic wine consumption; the rest of the world accounts for the remaining 10%. This suggests that organic wine is not a truly global phenomenon yet. The top 10 organic wine consumption markets account for 80% of global consumption. Among the top ten, Germany, France, the United Kingdom, the United States, and Sweden are the leading consumers, accounting for 60% of global consumption. Globally, organic wine’s share of total wine consumption is still relatively small but is expected to command an increasing share of total wine consumption in the future, climbing to around 4% by 2024.

In terms of value, the global organic wine market is expected to grow from USD 9.81 billion in 2022 to USD 23.51 billion in 2032 at a CAGR of 10.2%. The growth of organic wine consumption is driven by two primary forces: increased health consciousness and increased environmental responsibility. A heightened emphasis on ingredients, authenticity, self-care, and the environment is increasingly shaping consumer purchasing behaviors. This is especially true among younger millennial consumers who are increasingly more health and environmentally conscious. These values are reflected in their purchase behaviors. Wine consumers across markets generally view organic wine as the most expensive type of alternative wine. This fits well into the premiumization of wine consumption, where consumers prefer to drink more expensive and higher-quality wines less often.

Figure 1. Organic Wine Production by France, Italy, and Spain 2013-2023

Source: IWSR

According to the General Principles of Organic Vitiviniculture (OIV-ECO 460-2012) set out by the International Organisation of Vine and Wine (OIV), organic vitiviniculture is a production system that:

seeks to maintain ecosystems and the fertility of soils in the long term
seeks to increase biodiversity and the protection of natural resources
seeks to promote the use of ecological processes and cycles
seeks to minimize or eliminate external interventions and viticultural practices that require the use of chemical synthesis products
seeks to use organic products and processes in transformation and production processes, trying to avoid all techniques that have a considerable negative impact on the environment
excludes the use of genetically modified organisms and inputs derived from genetically modified organisms.

The principles set out in the above standards are translated into organic agriculture regulations. Depending on the country, organic production regulations may set rules only for grape production in the vineyard or extend to the practices and products permitted for processing and marketing organic viticultural products. Regulations, in turn, are translated into certification processes which assess the conformity of the production method of organically grown grapes or grape products. It is a way of guaranteeing consumers that the production conditions complied with the stipulations and informing them of producer approaches and practices through recognizable labels and logos.

This growth in global organic wine consumption is supported by an exponential increase in the certified organic wine production area, the area in conversion, and subsequent production, particularly in Italy, Spain, and France. These three countries are the global leaders in organic vineyard area and organic wine production. However, yields vary significantly from country to country due to differences in terroir, climate, and production standards.

Italy is the world’s largest producer of organic wine, with 708 million bottles in 2018, or 68% more than in 2013. Italy’s production is set to grow by 31% to 924 million bottles by 2023, as illustrated in Figure 1. France ranked second in 2018 with a production of 361 million bottles, up 119% compared with 2013. French production is expected to soar by 70% in 2023 to 613 million bottles. Spain ranked third in 2018 with 341 million bottles but aims to ramp up production by 75% to 599 million bottles in 2023, remaining in third position. By 2023, these three leaders are expected to produce nearly 2 billion bottles of organic wine annually.

Figure 2. Distribution of World Area Under Organic Vines in 2019

Source: OIV

In 2023, Spain will be the global leader in terms of land allocated for organic vineyards, increasing from 89,600 hectares (ha) in 2018 to 160,000 by 2023, reflecting a growth of almost 80%. In 2019, a total of 13% of Spain’s vineyards had organic certifications. Meanwhile, France is expected to have 115,000 ha while Italy comes in third with 96,320 ha. Overall, around 75% of the world’s certified organic vineyard surface area is situated in these three countries. Spain’s main organic wine-producing regions are Castilla-La Mancha, Catalonia, Murcia, and Valencia. Although domestic consumption in Spain is rising, the bulk of production is exported primarily to Germany, Austria, Benelux, Switzerland, the Nordics, Japan, China, and South Korea.

Figure 3. Organic Wine Consumption by Country 2019-2022

Source: IWSR

Taking into account that Spain has the largest area of any country in the world dedicated to organic wine production at 27% (Figure 2) and that its production has almost doubled in the past five years, it is expected to be one of the production and export leaders in the next 10 years. The most significant demand increase is expected from the European market, with Germany, France, and the UK leading consumption up to 2022. Outside Europe, the US is the largest market, as illustrated in Figure 3. Spain is ideally geographically situated to increase the production of organic wines and satisfy the demands of the top three consumption markets: Germany, France, and the UK. Spain can increase production and exports by converting existing vineyards to organic production, planting new vineyards and applying organic production standards, and applying organic winemaking practices. This initiative is led by the Spanish Organic Wines (SOW) organization, which promotes the cultivation of organic wine within Spain and promotes Spanish organic wines across the world.

For a detailed analysis about the Spanish wine market, read the Wine Report: Spain 2023 on Tridge's website.