Fair trade alcohol market set to soar

Posted by Josette Dunn on 29th September 2010

Fairtrade has surpassed organic as the latest ethical product set for massive growth in the alcohol sector finds Datamonitor.

Research from the independent market analyst has revealed the size of Fairtrade activity in Asia Pacific has increased in Australia and Japan. Indeed, the Fairtrade alcoholic beverage markets in Australia and Japan represent the biggest share of sales in the region and are set to grow at a rate of 18% and 15% respectively, year on year to 2014.

Fair Trade logo

Katrina Diamonon, consumer insights analyst at Datamonitor, said: “Over the last year, we have seen a flurry of activity in Fairtrade wine globally, despite the economic pressures being faced by consumers. This activity has been driven by an increase in the quality of Fairtrade wines, as well as awareness of the concept as a whole.”

Standardised Fairtrade labeling has also aided growth in the Asia Pacific region as it has helped to win consumer trust and drive new market opportunities. Recent high profile campaigns from Cadbury Dairy Milk in Australia and Whittaker’s in New Zealand have also aided the profile of Fairtrade.

Datamonitor believes that wine is specially suited to Fairtrade as shoppers are particularly interested and informed about the origins and production conditions associated with wine compared to other consumer goods. Fairtrade wine can provide this detailed information whilst at the same time encouraging social and economic change.

Diamonon continued: “There is also the social aspect of drinking to consider, and what the brand we drink says about us. As more than half of us place considerable importance on choosing brands that match our outlook and attitudes on life, it would be fair to assume that with increased publicity around ethicality, choosing a Fairtrade bottle of wine is becoming more fashionable.”

However, as big brands have seen the potential in the Fairtrade market, the industry is in danger of appearing over-commercialised to consumers.