The Emergence Of Georgian Organic Wine

Georgia's wine industry, rooted in an 8,000-year tradition, is on the cusp of a significant evolution, with organic wine poised to be its next global ambassador. The industry has seen remarkable growth, with wine exports increasing from 65 million USD in 2012 to over 210 million USD in 2020, marking a 223% rise in just eight years. Georgian wine is now sold in 54 countries, but the focus is shifting towards organic wine, which experts believe could open lucrative markets willing to pay a premium.

Georgian winemakers are increasingly recognizing the value of focusing on organic wine production. Iago Bitarishvili, the owner of Iago's Wine, points out that Georgia cannot compete with larger wine-producing nations in volume but has the potential to excel in the organic, natural, and ‘qvevri’ wine segments. These types of wines can command prices three to five times higher than standard wines. The global market for organic wines is growing rapidly, with a projection of reaching a $30 billion valuation by 2030, growing at 10.8% annually. Georgian winemakers, with their unique grape varieties and traditional methods, are well-positioned to capitalize on this trend.

Georgian wine's market strategy requires a nuanced understanding of global consumer preferences. While a significant portion of Georgian wine exports currently heads to Russia, where the average export price is around $2-$2.50 per bottle, the Western European market offers a more lucrative avenue, with Georgian wines potentially fetching upwards of 8 USD per bottle. Viticulture researcher Giorgi Barisashvili suggests that the focus should be on markets with a developed wine culture, particularly for organic and natural wines, as these segments are not as appreciated in countries like Russia and China.

Despite the promising prospects, organic wine production in Georgia is not without its challenges. Organic vineyards accounted for only 0.3% of the total vineyard area in 2020, and less than 1% of the vintage came from organic grapes. The transition to organic farming is costly, and the annual certification fees, along with the difficulties in establishing new market connections, especially in Europe, pose significant hurdles. However, there is a growing interest among winemakers, with organic certification demand increasing by 10-15% annually.

Georgia is establishing itself as a leader in organic wine exports to the United States. In fact, 11.3% of the wines exported from Georgia to the US are certified organic, placing Georgia ahead of countries like Austria and Canada. This achievement is underscored by the continuous growth in wine exports to the US, with a historical maximum reached last year and a sustained increase in the ongoing year.

The future of Georgian wine lies in embracing organic production while leveraging its rich winemaking tradition. The move towards organic wine is not just about adapting to market trends but also about aligning with the narrative of a country with a deep history in winemaking. As Georgian winemakers navigate the challenges and seize the opportunities in the organic wine market, they are setting the stage for a new chapter in the country's storied wine history.