Global  Organic Alcoholic Beverage Market Overview
Organic Alcoholic Beverage Market Size was estimated at 7.74 (USD Billion) in 2022. The Organic Alcoholic Beverage Market Industry is expected to grow from 8.3(USD Billion) in 2023 to 15.4 (USD Billion) by 2032. The Organic Alcoholic Beverage Market CAGR (growth rate) is expected to be around 7.12% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Organic Alcoholic Beverage Market Trends Highlighted
As the health awareness of individuals appreciably increases, the consumption of organic alcoholic beverages is also rapidly increasing. The market is propelled by the growing use of such products due to concerns over the side effects of synthetic components.
Tastes satisfy their desire to consume clean drinks; on the contrary, organic wines, beers, and spirits grow ever more popular. Using organic ingredients in production provides better quality and nutrition of the products and less chemical and artificial additives. Further the increasing trends of vegan and gluten-free also support the growth of organic alcoholic beverages
The market presents options for a range of product developments, such as creating new faux alcoholic and low-alcohol organic drinks for the health-conscious. Also, supply chain efficiency and environmental integrity may be improved by partnering with sustainable suppliers and organic farmers. By utilizing these trends and meeting consumer requirements, companies are well-placed to seize new opportunities in the organic alcohol market.
Organic Alcoholic Beverage Market Drivers
Rising Health Consciousness and Demand for Natural Products
Consumers are becoming increasingly health-conscious and seeking out natural and organic products, including alcoholic beverages. Organic alcoholic beverages are perceived as being healthier than conventional alcoholic beverages, as they are made with ingredients that are grown without the use of synthetic pesticides and fertilizers. This growing demand for natural products is a major driver of the organic alcoholic beverage market. The rising popularity of organic alcoholic beverages is also being driven by the increasing availability of these products in the market.Major retailers and online marketplaces are now stocking a wider range of organic alcoholic beverages, making them more accessible to consumers. This increased availability is helping to drive sales and growth in the organic alcoholic beverage market. Furthermore, the growing popularity of organic alcoholic beverages is being fueled by the increasing number of consumers who are seeking out sustainable and eco-friendly products. Organic alcoholic beverages are seen as being more sustainable than conventional alcoholic beverages, as they are produced using methods that minimize environmental impact.This growing demand for sustainable products is another major driver of the organic alcoholic beverage market.
Increasing Popularity of Craft and Artisanal Alcoholic Beverages
The growing popularity of craft and artisanal alcoholic beverages is another major driver of the organic alcoholic beverage market. Consumers are increasingly seeking out unique and flavorful alcoholic beverages, and craft and artisanal alcoholic beverages offer a wide range of options to meet this demand. Organic craft and artisanal alcoholic beverages are particularly appealing to consumers who are looking for high-quality, natural, and unique products. The increasing popularity of craft and artisanal alcoholic beverages is being driven by a number of factors, including the growing interest in local and regional products, the desire for unique and flavorful experiences, and the increasing availability of these products in the market.Craft and artisanal alcoholic beverages are now being produced in a wide range of styles and flavors, and they are available at a variety of retail outlets, including specialty stores, bars, and restaurants. The growing popularity of craft and artisanal alcoholic beverages is helping to drive growth in the organic alcoholic beverage market. Organic craft and artisanal alcoholic beverages are particularly appealing to consumers who are looking for high-quality, natural, and unique products, and this demand is expected to continue to grow in the years to come.
Government Regulations and Support for Organic Agriculture
A notable driver for the organic alcoholic beverage market is the fact that many governments all over the world are beginning to implement policies or systems that promote the use of organic products. In consideration of organic alcoholic beverages, the government’s system aids in the market’s development. Such policies may include funding for the production of organic products, technical support for producers, promotional marketing, and other laws to provide a better market system.This kind of support for organic agriculture helps lower the cost for producers, making the product cheaper and more available in the market. It seems logical that the government’s system and regulations will continue to significantly affect the market for organic alcoholic beverages.
Organic Alcoholic Beverage Market Segment Insights
Organic Alcoholic Beverage Market Type Insights
The Organic Alcoholic Beverage Market is divided by product type into beer, wine and spirits. As for the beer segment, this category is expected to account for the largest share of the overall market in 2023 and is expected to continue its stable growth over the forecast period. In the wine segment, the level of growth is expected to be moderate. Finally, in the spirits segment the level of growth is expected to surpass beer and wine. However, despite the rate of growth, the beer segment is still expected to dominate the market due to its wide consumption and popularity.As for the wine segment, its level of growth will be moderate due to increasing demand for organic wine from health-conscious customers. In the spirits segment, the level of growth is going to surpass other segments. This is due to the increasing demand for craft spirits, organic luxury and premium spirits. In conclusion, the organic alcoholic beverage market is expected to rise at a compound annual growth rate of over 7% over the projection period. The major drivers of growth are changes in customers’ knowledge of the benefits of organic products and the popularity of craft and artisanal beverages.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Organic Alcoholic Beverage Market Certification Insights
The Organic Alcoholic Beverage Market is segmented by certification, with key segments including USDA Organic, EU Organic, and JAS Organic. In 2023, the USDA Organic segment held the largest market share, accounting for over 40% of the market revenue. The EU Organic segment is expected to grow at a CAGR of 7.5% from 2024 to 2032, driven by increasing consumer demand for organic products in Europe. The JAS Organic segment is expected to grow at a CAGR of 6.8% during the same period, driven by the growing popularity of organic alcoholic beverages in Japan.
Organic Alcoholic Beverage Market Target Audience Insights
The target audience for organic alcoholic beverages is diverse and includes health-conscious consumers, environmentalists, and luxury drinkers. Health-conscious consumers are increasingly seeking out organic products as they perceive them to be healthier and more sustainable. Organic alcoholic beverages fit this bill, as they are made with organic ingredients and often have lower sugar and calorie content than traditional alcoholic beverages. Environmentalists are another key target audience for organic alcoholic beverages. These consumers are concerned about the environmental impact of their food and beverage choices, and organic alcoholic beverages offer a more sustainable option.Organic farming practices help to protect soil and water quality, and they reduce greenhouse gas emissions. Luxury drinkers are also increasingly interested in organic alcoholic beverages. These consumers are willing to pay a premium for products that are perceived to be of higher quality and more exclusive. This growth is being driven by the increasing demand for organic products from health-conscious consumers, environmentalists, and luxury drinkers.
Organic Alcoholic Beverage Market Distribution Channel Insights
The distribution channel segment plays a crucial role in the Organic Alcoholic Beverage Market. Online retailers have emerged as a significant distribution channel, driven by the growing popularity of e-commerce and the convenience of home delivery. In 2024, the online retail channel is projected to account for approximately 26.3% of the Organic Alcoholic Beverage Market revenue, reaching a valuation of USD 2.1 billion. Supermarkets and hypermarkets remain a dominant distribution channel, capturing a substantial market share due to their extensive reach and product variety.In 2024, this channel is anticipated to generate USD 3.4 billion in revenue, representing around 30.2% of the market. Bars and restaurants also contribute significantly to the market, providing consumers with an immersive experience and a wide selection of organic alcoholic beverages. The revenue generated through this channel is estimated to be USD 2.9 billion in 2024, accounting for approximately 25.7% of the market. The distribution channel segmentation offers valuable insights into consumer preferences and the evolving retail landscape, enabling market players to optimize their distribution strategies and cater to the specific needs of each channel.
Organic Alcoholic Beverage Market Packaging Insights
The packaging segment of the Organic Alcoholic Beverage Market is expected to witness significant growth in the coming years, driven by rising consumer demand for sustainable and eco-friendly packaging solutions. Glass bottles currently dominate the market, accounting for over 60% of the revenue in 2023. However, the increasing popularity of craft beers and artisanal spirits is expected to drive demand for cans and sustainable materials in the coming years. The Organic Alcoholic Beverage Market revenue from cans is projected to grow at a CAGR of 5.2% from 2024 to 2032, reaching $2.5 billion by 2032.Sustainable materials, such as biodegradable and compostable packaging, are also gaining traction, driven by growing consumer awareness of environmental issues.
Organic Alcoholic Beverage Market Regional Insights
The regional segmentation of the Organic Alcoholic Beverage Market provides insights into the market's geographical distribution and performance across different regions. North America held the largest market share in 2023, accounting for approximately 35.4% of the revenue. The region's strong demand for organic and sustainable products, coupled with the presence of established players, has contributed to its dominance. Europe follows closely, with a market share of around 32.2% in 2023. Growing health consciousness and increasing disposable income have driven the demand for organic alcoholic beverages in the region.The Asia Pacific (APAC) region is expected to witness significant growth over the forecast period, with a CAGR of 8.2%. Rising middle-class population, increasing urbanization, and changing lifestyle patterns are key factors supporting the market growth in APAC. South America and the Middle East and Africa (MEA) regions are also expected to contribute to the overall market growth, albeit at a slower pace compared to other regions.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Organic Alcoholic Beverage Market Key Players And Competitive Insights
Major players in the Organic Alcoholic Beverage Market industry are focusing on developing new products and expanding their distribution channels to cater to the growing demand for organic alcoholic beverages. Leading Organic Alcoholic Beverage Market players are also investing in research and development to improve the quality and taste of their products. The Organic Alcoholic Beverage Market is expected to witness significant growth in the coming years, owing to the increasing health consciousness among consumers and the growing popularity of organic products.Diageo, one of the leading players in the Organic Alcoholic Beverage Market, has a wide portfolio of organic alcoholic beverages, including beer, wine, and spirits. The company has a strong distribution network and a presence, which gives it a competitive edge in the market. Diageo is also investing in research and development to develop new organic alcoholic beverages and improve the quality of its existing products.Brown-Forman, another leading player in the Organic Alcoholic Beverage Market, has a strong portfolio of organic spirits, including bourbon, whiskey, and vodka. The company has a strong focus on sustainability and uses organic ingredients in all of its products. Brown-Forman is also investing in research and development to develop new organic spirits and improve the quality of its existing products.
Key Companies in the Organic Alcoholic Beverage Market Include
- Edrington Group
- Bacardi Limited
- Constellation Brands
- Asahi Group Holdings
- Carlsberg Group
- Heineken
- Diageo
- Campari Group
- Molson Coors Beverage Company
- BrownForman
- Suntory Holdings
- Beam Suntory
- AnheuserBusch InBev
- Pernod Ricard
Organic Alcoholic Beverage Market Industry Developments
Recent developments in the organic alcoholic beverage market include the growing popularity of hard seltzers and ready-to-drink (RTD) cocktails, which have been gaining market share from traditional beer and wine. The market is also seeing a rise in demand for low- and no-alcohol options, as well as organic and sustainably produced beverages. Additionally, the increasing popularity of e-commerce and online alcohol sales is expected to drive market growth in the coming years. In 2023, the organic alcoholic beverage market was valued at USD 8.3 billion, and it is projected to reach USD 15.4 billion by 2032, exhibiting a CAGR of 7.12% during the forecast period.
Organic Alcoholic Beverage Market Segmentation Insights
Organic Alcoholic Beverage Market Type Outlook
Organic Alcoholic Beverage Market Certification Outlook
- USDA Organic
- EU Organic
- JAS Organic
Organic Alcoholic Beverage Market Target Audience Outlook
- Health-Conscious Consumers
- Environmentalists
- Luxury Drinkers
Organic Alcoholic Beverage Market Distribution Channel Outlook
- Online Retailers
- Supermarkets and Hypermarkets
- Bars and Restaurants
Organic Alcoholic Beverage Market Packaging Outlook
- Glass Bottles
- Cans
- Sustainable Materials
Organic Alcoholic Beverage Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
Organic Alcoholic Beverage Market Report Scope
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Report Attribute/Metric
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Details
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Market Size 2022
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7.74(USD Billion)
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Market Size 2023
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8.3(USD Billion)
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Market Size 2032
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15.4(USD Billion)
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Compound Annual Growth Rate (CAGR)
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7.12% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Edrington Group, Bacardi Limited, Constellation Brands, Asahi Group Holdings, Carlsberg Group, Heineken, Diageo, Campari Group, Molson Coors Beverage Company, Brown-Forman, Suntory Holdings, Beam Suntory, Anheuser-Busch InBev, Pernod Ricard.
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Segments Covered
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Type, Certification, Target Audience, Distribution Channel, Packaging, Regional.
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Key Market Opportunities
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Rising demand for natural and organic products Growing health consciousness among consumers Expanding distribution channels Increasing popularity of craft and artisanal beverages Innovation in product offerings
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Key Market Dynamics
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Rising health consciousness increasing demand for natural and sustainable products, growing consumer preference for craft and artisanal beverages, expansion of e-commerce channels and emerging regulatory frameworks
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The organic alcoholic beverage market size was valued at USD 8.3 billion in 2023 and is projected to reach USD 15.4 billion by 2032, exhibiting a CAGR of 7.12% during the forecast period.
The growing consumer preference for organic and natural products, increasing health consciousness, rising disposable income, and the expansion of the organic farming sector are the key factors driving the growth of the organic alcoholic beverage market.
North America is expected to hold the largest market share in the organic alcoholic beverage market due to the increasing demand for organic and natural products, well-established distribution channels, and the presence of major market players in the region.
Organic alcoholic beverages are primarily used for recreational purposes, social gatherings, and celebrations. They are also used in cooking and culinary applications, adding flavor and complexity to dishes.
Some of the key competitors in the organic alcoholic beverage market include Anheuser-Busch InBev, Diageo, Constellation Brands, E. & J. Gallo Winery, and The Boston Beer Company.
The organic alcoholic beverage market is projected to grow at a CAGR of 7.12% from 2024 to 2032.
The major challenges faced by the organic alcoholic beverage market include the limited availability of organic raw materials, stringent regulations, and intense competition from conventional alcoholic beverage producers.
The key trends shaping the organic alcoholic beverage market include the rising popularity of craft and artisanal organic alcoholic beverages, the growing demand for low- and no-alcohol organic options, and the increasing adoption of sustainable packaging solutions.
The COVID-19 pandemic had a mixed impact on the organic alcoholic beverage market. While on-premise consumption declined due to lockdowns and social distancing measures, off-premise consumption increased as consumers purchased organic alcoholic beverages for home consumption.
The future growth prospects of the organic alcoholic beverage market are positive, driven by the increasing consumer demand for organic and natural products, the expansion of the organic farming sector, and the growing popularity of craft and artisanal organic alcoholic beverages.
