At 6.2% CAGR, the Middle East & Africa Organic Wine Market is projected to be worth US$ 453.75 million by 2028, says Business Market Insights

According to Business Market Insights’ research, the Middle East & Africa organic wine market was valued at US$ 316.41 million in 2022 and is expected to reach US$ 453.75 million by 2028, registering an annual growth rate of 6.2% from 2022 to 2028. The high production cost of organic wine compared to conventional wine and increasing focus on developing high-quality and innovative products are the critical factors attributed to the market expansion.

The demand for organic wine is rising because of consumers' increasing propensity for a healthy diet and an active lifestyle. This has led to an increase in the production of organic wine. Organic crops production require higher labor cost, and the yield percent is very less between 30-50 percent. To make the same amount of profit, the produce is priced high. The supply is low and the demand is high, which is naturally pushing the price up. Moreover, the mandated separation of organic and conventional produce, especially for processing and transportation, results in increased expenses for post-harvest handling of relatively modest quantities of organic products. Organic production are expensive as organic products are produced considering their eco-friendliness so that they do not hamper the environment, but these crops are stored for longer times and fewer instances of pest infestation translate into high pricing. Organic farming is labor expensive, the biofertilizer used are very also very expensive. For instance, the high costs of organic crops make up for the lower financial returns of the rotational periods required to increase soil fertility. These crops are cultivated considering strict requirements compared to regular crops, which contain chemicals that can harm animals. Technological developments and economies of scale must lower the cost of producing, processing, distributing, and marketing organic produce as consumer demand for organic food and goods increases. Organic products require careful storing as the spoilage is high, apart from this the risk of undertaking organic farming is high too, all these factors are leading to the higher cost of production of organic crops and restraining the growth.

On the contrary, high production cost of organic wine compared to conventional wine hurdles the growth of Middle East & Africa organic wine market.

Based on type, the Middle East & Africa organic wine market is bifurcated into still and sparkling. The still segment held 93.0% market share in 2022, amassing US$ 294.30 million. It is projected to garner US$ 420.28 million by 2028 to expand at 6.1% CAGR during 2022–2028. The still segment is further sub-segmented into red, white, and rose.

Based on packaging type, the Middle East & Africa organic wine market is bifurcated into bottles and cans. The bottles segment held 96.8% market share in 2022, amassing US$ 306.28 million. It is projected to garner US$ 438.85 million by 2028 to expand at 6.2% CAGR during 2022–2028.

By distribution channel, the Middle East & Africa organic wine market is fragmented into supermarkets and hypermarkets, specialty stores, online retail, and direct selling. With 47.3% share of the domain, the direct selling segment dominated the market in 2022. It accrued US$ 149.60 million in 2022 and is estimated to generate US$ 221.06 million by 2028 to grow at a CAGR of 6.7% over the forecast period.

Based on country, the Middle East & Africa organic wine market is categorized into South Africa, Qatar, the UAE, and  the rest of Middle East & Africa. Our regional analysis states that South Africa captured 53.9% market share in 2022. It was assessed at US$ 170.61 million in 2022 and is likely to hit US$ 250.59 million by 2028, exhibiting a CAGR of 6.6% during the forecast period.

Key players dominating the Middle East & Africa organic wine market are Avondale, ELGIN RIDGE WINES, GRGICH HILLS ESTATE, and Società Agricola Querciabella SpA among others.

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