Although the market for organic products in France is stalling, the picture for organic wines remains generally positive. As the organic wine industry prepares to travel to Montpellier from 27 to 29 January 2025 for Millésime BIO this can only be good news.
Contents:
- Positive signals (almost) all round
- The conversation rate slows
- Organic winegrowers in positive spirit
Positive signals (almost) all round
Millésime BIO, the world’s largest exhibition for organic wines and alcoholic drinks, traditionally kicks off the trade events calendar. This year, it is due to be attended by 1,500 exhibitors and 11,000 visitors from 27 to 29 January, and the mood is expected to be relatively upbeat. In 2023, organic vineyard acreage rose by 1.6% in France, bucking the general trend for organic crops which declined for the first time according to Agence Bio. Totalling 171,265 hectares, France’s organic vineyards account for nearly 22% of total area under vine, versus just 6% in 2010. Another reason for satisfaction is that sales of organic wine in France are going against the general flow of the market for organic products, increasing both by volume (+6%) and value (+7%). The organic wine industry is worth 1.56 billion euros, over one third of which stems from exports, and continues to be buoyed by direct-to-consumer sales. Accounting for half of organic wines sold, the channel grew by 14.3% in value, with wine merchants rising by 12.4%. Only super/hypermarkets saw a decline in sales (-4.6%), mirroring a drop in the number of organic wine SKUs in the majority of stores.
The conversion rate slows
This overall growth, however, is not enough to offload extra output stemming from the surge in vineyard conversions between 2018 and 2020. Nevertheless, the imbalance may improve as acreage in the switch-over phase declines (-33.5% in 2023 compared with 2022). SudVinBio, the trade association for organic winegrowers in Occitanie and exhibition organisers, links the trend to two factors. Firstly, “the potential to convert vines mathematically decreases as more land is converted”, and also “the industry’s development has always alternated between phases of growth and slow-down in order to balance supply and demand in response to cyclical changes”. Despite this, hazardous weather, compounded by the economic crisis, is putting organic winegrowers through their paces, as exemplified by Château Saint-Loubert in Graves and Bordeaux. “In 2021, marked by significant frost and rain, we lost 90% of the crop. Then, in 2022, we suffered from drought and leafhoppers… Our first organically certified vintage in 2023 sold for the same price as conventionally farmed wines, despite the fact that the technical constraints and overheads are higher for certified farms”, says Agnès Garbay. For the past 20 years, she has helmed the family-owned property with her husband. Reluctantly, she had to throw in the towel. “Obviously, our customers are receptive to the endorsement and prepared to pay a little more for it, but for a small farm with cash-flow issues after three poor crops, waiting to see whether the organic treatment will work or not adds constant stress”.
Organic winegrowers in positive spirit
Undeniably, there are growers reverting back to conventional farming, but the general mood is not one of defeatism. “2024 is our first year of conversion and the first time we will be attending Millésime BIO, which proves that we believe in it”, says Madeleine Premmereur of Château Barbebelle in the Coteaux d’Aix-en-Provence appellation area. The winery’s decision to sign up for the AB endorsement is primarily driven by “concerns about quality and the environment” more than sales. “This won’t be the silver bullet for regaining market shares, even though when faced with a choice between an organic and a conventional wine offering similar value for money, consumers will go for the first one”. The survey conducted by SudVinBio confirms the upbeat mood among exhibitors, with respondents saying they were more confident in the future of organic wines than in the future of wine in general. Their feelings were even stronger for the long term: 30.5% of surveyed winegrowers predict growth in the French market over the next ten years, compared with 20.5% over the next three years. And 40 % believe that organic wine consumption will increase globally over the next decade, with the figure dropping to just 14% for conventional wine.
Florence Jaroniak. © : pxhere
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