Consumer preferences for organic wine - Global analysis of people and place

    Press/Media: Research

    Description

    This paper analyzes differences in consumers perception of organic wine and purchasing intentions in traditional/old world wine regions (TPC) compared to new world wine regions (NPC). Our research questions whether consumers would be willing to pay a premium for organic wine, what type of consumer would have a higher likelihood to pay, and if there is a different between TPC and NPC regions.

    We collect and analyze data from approximately 2500 respondents from seven countries (Australia, Chile, France, Italy, Netherlands, South Africa, and the United States). Our methodology includes descriptive statistics on respondent socio-demographic information, and both a Pearson's chi-squared test and ordinal logistic regression with marginal effects to examine the willingness to pay (WTP) a premium for organic wines.

    The results show that the respondents are indeed willing to pay more for a wine that is organically labelled whatever their country of origin. We find that the most important consumer attributes include age, the importance attributed to eco-certification, and likelihood to buy eco-certified wine. In addition, TPC countries have a slightly higher likelihood to buy and pay a premium for organic wines, compared to NPC countries.

    Subject

    Organic wine

    Period23 Sept 2022 → 26 Sept 2022

    Media coverage

    2

    Media coverage

    • TitleWhy hasn't organic wine taken off in Australia?
      Degree of recognitionNational
      Media name/outletThe Lighthouse
      Media typeWeb
      Country/TerritoryAustralia
      Date26/09/22
      DescriptionWine-loving Australians are sceptical about organic wine, with most being prepared to pay only a small or no premium to drink it, analysis of an international study reveals.
      But there are ways and means to encourage Australians to drink more organic wine, says a Macquarie University researcher.

      Dr Rezwanul Rana is a teetotal health economist. But when a colleague asked him to do some statistical analysis on data collected in 2019-2020 from around 2500 wine drinkers in Australia, Chile, France, Italy, the Netherlands, South Africa and the United States, he was intrigued.

      Portrait of an organic wine drinker

      Like organic food, organic wine is relatively expensive to produce. So, the survey’s primary focus was on how much of a premium consumers would pay for it.

      “A little under half of those surveyed said they would only pay US$1-$5 more for a bottle of wine that was organic,” Dr Rana says. “If they are willing to buy it at all, most consumers in all the countries surveyed would only pay slightly more for organic wine.”

      It wasn’t older wine drinkers, presumably more affluent and health conscious than their younger counterparts, who were willing to pay extra for wine grown without chemical fertilisers, pesticides, fungicides and herbicides and free from sulfur dioxide-based preservatives.
      Producer/AuthorNigel Bowen
      URLhttps://lighthouse.mq.edu.au/article/august-2022/why-hasnt-organic-wine-taken-off-in-australia
      PersonsRezwanul Rana
    • TitleAnalysis: hipsters key to unlocking organic wine sales
      Degree of recognitionNational
      Media name/outletThe Shout
      Media typeWeb
      Country/TerritoryAustralia
      Date23/09/22
      DescriptionOrganic wine continues to struggle to gain traction amongst Australian drinkers, with many refusing to pay the premiums demanded by the category, according to a report from Macquarie University (MU).

      The research found that while few drinkers are willing to pay above average prices for organic wines, there are steps that retailers and the industry at large can put in place to entice consumers to the category.

      Dr Rezwanul Rana, health economist at MU’s Centre for the Health Economy, undertook statistical analysis of data gathered from 2500 wine drinkers in key markets between 2019 and 2020. These included three ‘old world regions’ of France, Italy and the Netherlands, and four ‘new world regions’ ­– Australia, Chile, South Africa and the US.

      Like most organic products, organic wines are more expensive to produce than their mainstream counterparts. Organic wine is better for drinkers, and better for the environment, according to Rana.

      However, Rana’s research found that “a little under half of those surveyed said they would only pay US$1-5 more for a bottle of wine that was organic.”
      This was “if they are willing to buy it at all, most consumers in all countries said they would only pay slightly more for organic wine,” Rana says.

      In particular, Rana found that older drinkers were more likely to be wary of organic wines.
      Producer/AuthorSeamus May
      URLhttps://theshout.com.au/analysis-hipsters-key-to-unlocking-organic-wine-sales/?mkt_tok=NjgxLVBOSi00MzIAAAGHPwi_ExDiZcu2S5lf-Sm4cLcwocFWguie0i8feZ8dMIXTzF0RJ-_p5uEKQmi1_iaI6gYCLbAu56rIgttxYI8XHL22GWW8wZtG6kH-mYPC01lD4H0
      PersonsRezwanul Rana