I started by scanning dozens of handmade paper I got from Bic Arts Supply into 600 DPI. The key to this is that when warping the textures in After Effects the shapes will not become pixelated or distorted.
I then created all the basic vector shapes in After Effects and track matted the textures onto them. This would allow me to later move textures on the shapes as I did with the waves as they hit their final states.
The most difficult thing to animate was the water in the bottle
I will still be working on this water in the future. It was built using Red Giant's Trapcode Mir and several complex parentings on different null objects. I may go back and tweak this again to better suit my liking.
For the Boat I heavily relied on the puppet tool to allow for subtle bends in the sails.
The result of the boat looked like this...
Having some sort of fabric was important to me to create a lifelike appearance in the scene. I worked with some CG fabric to create the illusion of movement then I track matted it with one of my paper assets to add it into the world.