Aussie wine exports up 11% despite drop in US demand

China continues to drive Australian wine exports, contributing to an overall 11% rise in value to to AUS$2.71 billion and 5% in volume to 842 million litres (94m 9-litre cases) this year, despite a $38m drop in the value of exports to the US.

According to figures published by Wine Australia today, for the year ended 30 September 2018 shipments of bottled wine increased by 8% in value to $2.16 billion and 2% in volume to 366 million litres (41 million 9-litre cases), while shipments of unpackaged wine grew by 23% in value to $525 million and by 9% in volume to 468 million litres.

Exports grew to all but one of Australia’s major markets (the US), with the strongest growth achieved in Northeast Asia, where exports grew by 24% to $1.14 billion in value.

In North America, a $16 million increase in exports to Canada only partially offset a $38m decline in exports to the US.

“Growing the China and the USA markets is the key focus of the Australian Government’s Export and Regional Wine Support Package ($50m Package),” said Andreas Clark, CEO of Wine Australia.

“We are seeing strong growth in China and we have redoubled our efforts in the USA to capture more of the premium end of the market as American consumers trade up to higher priced wines.

“There is positive sentiment about Australian wine in the USA among key influencers and consumers. While consolidation at the distribution level of the three-tier system is proving to be a difficult barrier to overcome, the hard work of Australian exporters willing to get in to market is starting to pay off.”

Europe saw exports grow by 5% to $604 million, an increase matched by Southeast Asia, whose Australian wine imports are now worth $170 million.

Exports to Oceania markets increased by 21% to $105 million, while the Middle East saw export values rise by 41% – the highest growth – albeit it from a smaller base, rising to $30 million.

There were also increases in the average value of wine exported, with a 7% increase for bottled wine to $5.90 per litre, a 13% increase of unpackaged wine to $1.12 per litre and a 5% increase of all wine exported to $3.21 per litre.

“In the 12 months to 30 September, there was healthy growth across the price spectrum. Exports above $10 per litre increased by 20% to $804 million, with the $20 to $29.99 segment in particular, showing considerable growth. Below $10 per litre, the $5 to $7.49 segment was the star, growing by $50 million”, Clark added.

Wine Australia