Global demand for Aussie wine is steady

By Jed Lanyon

A steady demand for Australian wine around the world has seen growth in value to all major export markets and a four per cent increase in overall value to $2.998 billion, according to Wine Australia’s latest export report.

From September 2019 to 2020 the average value of Australian wine exports increased by four per cent to $3.89 per litre, matching the growth of overall value, while the volume of exports declined slightly by 0.4 per cent to 771 million litres (85.7 million cases).

Wine Australia CEO Andreas Clark said the overall value is at the highest level since exports reached $3 billion in the second half of calendar year 2007.

“Despite the unprecedented disruption that we’ve seen in markets around the world, Australian wine export volume has held reasonably steady and it is particularly pleasing to see both the overall value and the average value of exports growing during these challenging times,” Mr Clark said.

Yarra Valley Wines CEO Caroline Evans said Wine Australia’s numbers were in line with those of winemakers in the Yarra Valley.

“From a Yarra Valley perspective, our numbers reflect that as well in a slight dip in volume but a strong growth in value particularly between the price points of $15 and $30,” she said.

“And we’re really happy with that premiumisation with what is being exported because we make and sell premium wine here in the Yarra Valley, so that’s a really positive trend for us.”

These latest figures (based on 12 month moving averages) and the latest easing of Covid-19 restrictions which will see cellar doors and wineries reopen has Ms Evans believing it’s a “good news week”.

Ms Evans said she was particularly pleased to see an 18 per cent increase in Yarra Valley wines being exported into the United States following a Yarra Valley Wines campaign to highlight Aussie wines across the country.

Last year, six Yarra Valley winemakers toured the US promoting Americans to buy Australian wines and to visit the region.

“We are pleased as it’s a very complex market. Each of the 50 states have different regulations and requirements so it is satisfying to see how strongly it has grown over the last 12 months.”

Wine Australia reported the growth in value was predominantly driven by exports to the United Kingdom and mainland China, with that growth being particularly strong in the last quarter of the 12-month period.

“During the July to September 2020 quarter, the value of exports increased by 23 per cent compared to the same period in 2019, and this comes after declines of four per cent in the April to June quarter and seven per cent in the January to March quarter,” Mr Clark said.

“Throughout the Covid-19 pandemic, there have been clear trends for wine consumption emerging around the world. While premiumisation has continued, there has also been a resurgence in commercial wines, and this is evident in the growth that we’ve seen in different price segments, where it was particularly strong at the low and high ends.”

“Different markets have had different trends. In markets such as the UK and United States of America, growth was primarily at the commercial/value end, while in China growth for premium wines has remained strong this year.”

In the 12 months ended September 2020, Australian exporters shipped wine to 117 destinations.

Wine Australia noted the most significant growth came in exports to Europe, up 16 per cent to $678 million and over-taking North America in value terms for the first time since 2011.

The top five destinations by value all recorded growth were mainland China, up four per cent to $1.2 billion, USA, up one per cent to $439 million, UK, up 18 per cent to $430 million, Canada, up four per cent to $196 million, and New Zealand, up nine per cent to $103 million.