Increasingly Demanding Consumers
A generation seeking transparency
The recent trend toward premiumization in the wine industry is linked to the current concerns of consumers, who are becoming increasingly discerning and demanding greater transparency regarding the products they consume.
The Rise of Organic and Natural Wines
What winemakers need to remember
The lifestyle of the younger generation stands in stark contrast to that of their parents and grandparents. The numerous food scandals that have emerged since the early 1990s—such as the mad cow disease crisis in France in 1992, the dioxin-contaminated chicken and egg crisis in 1999, the avian flu outbreak in 2003, the E. coli outbreak in 2011, and the Fipronil egg crisis in 2017—to name just a few—have created a “diffuse anxiety regarding food quality” (Fassier-Boulanger, 2018). Trust in producers has been broken, and a climate of mistrust has taken hold. Consumers want greater transparency regarding the products they consume and are seeking more natural products.
In addition, we are seeing a growing awareness of environmental issues today. European citizens are increasingly sensitive to environmental issues. 96% of Europeans believe that environmental protection is a major issue, and more than 80% feel personally responsible for it, with three-quarters of them saying they are ready to take action (Ginsburger, Petev, 2018). The younger generation, inspired by figures such as Greta Thunberg, is particularly committed to the fight against global warming and is making respect for nature a key demand. The wine sector is particularly affected because consumers are increasingly aware of the environmental impacts of agricultural practices (soil depletion, groundwater depletion, overuse of pesticides, etc.). However, terroir is an integral part of France’s heritage, as demonstrated by the significant volume of wines with geographical indications sold in France between May 2018 and April 2019. Organic farming and the production of natural winesoften appear to consumers as a solution for continuing production while respecting nature. The carbon footprint of the final product is also an important factor for consumers. Thus, it is conceivable that producers will soon be confronted with this new challenge. Indeed, transportation, bottle manufacturing, and the cooling of musts have already been identified as factors with a major impact on the carbon footprint.
Finally, these concerns are likely to intensify. Indeed, the effects of global warming are already beginning to be felt in the consumer’s glass. The rise in air temperature (an average of +1.4°C since 1900) has led to an increase in the alcohol content of wines. Consumers are increasingly aware of this and are exerting “extremely significant pressure” on producers, in the words of Christophe Navarre, president of Vinexpo.
Consumer demand is already evident today, with the growing popularity of new segments such as natural and organic wines. Sales of organic AOP wines jumped 15% in 2018 for Bordeaux wines. The initiative announced by Emmanuel Macron at the February 2019 Salon de l’Agriculture to make French vineyards “the world’s first glyphosate-free vineyards” as part of the ecological transition could further support this growth. This is all the more true given that, as confirmed by the 2019 Sowine Barometer, organic wines are very well received by consumers. In fact, one in two buyers is willing to pay more for a wine labeled as organic (Sowine Barometer / Dynata. Sowine, 2019). 80% of organic wine purchases take place in supermarkets. The main motivations for purchasing organic wine are assurance of the wine’s quality, support for local terroirs and producers, and respect for the environment. Organic production could therefore be an alternative that satisfies consumers.
Today, producers must take steps to offer wines that meet the expectations of consumers—who are connected and environmentally conscious. Indeed, as in any market, consumers wield significant power: the power to decide whether or not to purchase a product. Therefore, taking these new trends into account is essential to a winemaker’s commercial success.
By Arthur Karsenty, Solenne Mior, and Flore Vimal du Monteil
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