The Wine Australia Export Report, released today, announced that Australian wine export value increased by $201 million (+10%) in 2016-2017, to $2.31 billion, thanks to strong export growth to China and the USA.
This performance puts Australia in the position of the world’s fifth-biggest exporter of wine, behind France, Italy, Spain and Chile.
‘Pleasingly, nearly all price points experienced growth and there were benefits for exporters in all segments of the market,’ said Wine Australia chief executive officer Andreas Clark.
‘The strongest growth was in more premium wines, with all price segments of $10 per litre FOB and above experiencing growth, and the strongest rate of growth for wines $30–49.99 per litre FOB.’
‘There were a record 1,997 exporters last financial year, and 69 per cent contributed to the total increase in value shown,’ Mr Clark continued.
‘An interesting development from last year was the growth in the carbonated wine category, which includes varieties such as Moscato. Exports more than doubled to $30 million. The United States was the destination for 35 per cent of the carbonated wine exports, with mainland China (15 per cent) and Japan (14 per cent) the other major destinations,’ he concluded.
Exports by region
All regions recorded growth, except Europe (-1% to $568 million) and Oceania (-1% to $87 million).
Exports to Greater China increased by 33%, to $271 million, thanks to the China-Australia Free Trade Agreement (ChAFTA) which came into being at the end of 2015. Note that Hong Kong is an important hub for Australian wines, with 95% of re-exports going from there to mainland China and Macau.
Bulk wine exports more than doubled, to $31 million, with a low bulk share at 6%. Bottled wine exports also grew strongly, up 41% to $568 million, representing a 94% share.
By value, Australia represents 24% of wine imported into mainland China, behind France with its 41% share.
The UK remains the #1 destination for Australian exports by volume. Overall, the total value of exports to the UK declined by 7 per cent, to $341 million.
In 2016-17, exports to the USA increased by 3%, to $464 million (the highest score since 2011-12), driven by white wine exports (+3% to $181 million) and carbonated wine (mainly Moscato) increasing 10-fold to $11 million in value.
The positive trend towards Australian premium wines in the USA continued. Exports at $10 per liter or more increased by 21 per cent, to $43 million.
* $ are Australian dollars.