Greenbottle, the company behind the product, already manufactures the world's first paper milk bottle, which is being tested in Asda supermarket stores in the southwest of England and is apparently proving popular with ethically minded customers.
More than 15 million plastic bottles are used in the UK. Most end up in landfill where they will last for up to 500 years.
"In local shops where they are available, they are outselling milk in plastic bottles by two or three to one," said Martin Myerscough, the Suffolk businessman who invented the paper bottle.
Myerscough established his company after talking to a waste tip supervisor who told him plastic bottles were the biggest problem in his job. He says that retaining the wine bottle shape was an attempt to reassure consumers.
"We can be more radical, but we are inventing a concept here and we don't want people to be too scared about it.
"If we are going to change consumer habits, we need to lead them along gently," he explained.
The wine bottles feature a similar bag to that found in wine boxes so the drink is kept in pristine condition. Greenbottle's products are made in Turkey but a plant is due to open in Cornwall soon.
The intention is to sell the technology to companies, allowing them to build bottling plants next to their manufacturing sites and cut down on transport times.
The current machinery is capable of producing 50 milk bottles a minute and is patent protected.
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