International organic wine market analysis: Canada has the greatest potential for growth

A new study by Letis International Organic Product Certification Agency shows that organic wine consumption in Canada has great growth potential. Organic wine consumption in the United States and other European countries performed best.

At the Organic Producers Conference held in Mendoza last week, Ingrid Clausen, president of Letis Development, spoke about the organic wine market.

potential market

Clawson said: "For organic wine producers, the most potential export market is Canada." More recently, Canada has implemented new organic product standards that help raise people's awareness of organic products. At present, the annual growth rate of organic products in Canada is 20%, and the cumulative annual profit is about 2 billion US dollars.

Clawson believes that the U.S. market conditions are similar, "In 2002, the U.S. introduced the "Organic Law," and the annual increase in the consumption of organic products was 20%. During the economic crisis, the increase in consumption fell to 5.3%. According to analysts, organic products in the U.S. market The increase in consumption will soon resume as before. In addition, the annual profit of organic consumption in the United States has reached 26.6 billion U.S. dollars."

As far as the European market is concerned, organic wine consumption has grown tremendously in recent years. "This high growth trend may slow down in the next few years and then it will continue to rise. At present, the overall consumption in the European continent has risen by 15%."

European market demand: Sweden is the biggest buyer

Letis research shows that European demand for organic products is the highest in Sweden, with an annual growth rate of 18%, followed by 10.8% in the Netherlands, 8% in Denmark, 7% in Italy and Switzerland, and 5% in France and Austria.

In Europe, Germany and France have the highest profits for organic products. Germany reached 7.4 billion U.S. dollars and France 3.2 billion U.S. dollars. The United Kingdom ranked third with 2.9 billion U.S. dollars.

However, the consumption of organic products in Germany and the United Kingdom in 2009 was modest. There has been no increase in the consumption of organic products in Germany, and UK consumption has decreased by 12%. Klausen said that the main reason is that both countries have experienced severe economic recession in 2008.

“As far as the United Kingdom is concerned, the supermarket industry is in crisis. Many supermarkets are worried that organic products will be unsalable and they will withdraw their shelves. As a result, they lose a lot of profits. However, the demand from UK consumers is still high, resulting in an imbalance between supply and demand. It is expected to make up for this loss."

Latin American market

Crawson also mentioned the South American market. “Brazil is the organic market with the greatest development potential in South America. The Brazilian government has made many efforts to increase people’s awareness of the value of organic wines.” Argentina is the largest organic product growing region in South America.

The difference between Europe and Argentina

Klausen said: "The consumption levels in Europe and Argentina are very different." Letis representatives mentioned several reasons for this phenomenon. "The main reason is cultural differences. The old continent is densely populated and people have higher awareness of pollution. The collective consciousness immediately reflected in the organic food culture."

Germany is one of the pioneer countries in the manufacture of organic products. It began organic production 30 years ago. “Initially, they had no choice but to sell their products in the country. What manufacturers are trying to publicize to consumers about organic products and traditional products? A great deal of effort has been made in different areas, and Argentine consumers are very unified on this point, that is gradually understanding organic products.