After 20 per cent growth in the value of Australian wine exports to $2.76 billion (the highest rate of growth in 15 years) and the average value of wine growing by 9 per cent to $3.24 per litre (its highest value since 2009), the Australian grape and wine community is redoubling its efforts in the USA market.
Wine Australia CEO Andreas Clark said the strong growth in the value and volume of Australian wine exports is very welcome, but Wine Australia’s Export Report for the year ended 30 June 2018 makes the challenges and opportunities for the sector very clear.
‘Of our five largest markets, only one market – the USA – didn’t grow in value last year. Importantly, the USA is the world’s largest wine market and Australia has the opportunity to capture more of the premium end of the market as American consumers trade up to higher priced wines’, Mr Clark said.
‘Australia has been very strong in the commercial half of the USA market (54 per cent of the US off-trade volume is wines under US$8 per bottle), but this market is shrinking. As American consumers transition from commercial wines to more premium wines, Australia has to be there to capture the opportunity.
In the 12 months to June 2018, all but one of Australia’s export price segments showed growth, as detailed in Table 1 below, with exports above $10 per litre increasing by 45 per cent to $855 million, a record value.
The key price segments that drove this growth were wines priced $20–29.99 per litre FOB and $50–99.99 per litre FOB, both of which grew by over 80 per cent. Also driving growth in overall value is the $2.49 per litre FOB and under segment, reflecting the increase in demand for bulk shipments.
Nearly all regions that Australia exports wine to increased in value in the past 12 months, with Northeast Asia having the stand out performance, growing by 51 per cent to $1.2 billion.
Other regions that experienced encouraging growth included:
Europe, by 7 per cent to $608 million
Southeast Asia, by 3 per cent to $168 million
Oceania, by 15 per cent to $99 million, and
the Middle East, by 39 per cent to $30 million.
North America was the only region to decline in value, by 4 per cent to $624 million, a $12 million increase in the value of exports to Canada only partially offsetting a $39 million decrease in the exports to the USA.
The top 5 markets by value in 2017–18 were:
- China, including Hong Kong and Macau (40 per cent of export value)
- USA (15 per cent)
- United Kingdom (14 per cent)
- Canada (7 per cent), and
- New Zealand (3 per cent).