Australian wine exports declined by 1 per cent in volume to 627 million litres and 11 per cent in value to $2.01 billion in the year ended 30 September, according to Wine Australia’s latest Export Report released today.
While the decline is reflective of the tough market conditions over the past two years – including high deposit tariffs on bottled Australian wine imported to mainland China, the impact of the global freight challenges, and the aftermath of changing consumer habits during the COVID-19 pandemic – the figures also reflect that value is starting to stabilise.
Wine Australia Manager, Market Insights Peter Bailey said that the results were mixed for the year, with the increases recorded in some markets offset by declines in others.
“As a moving annual total result, the Export Report can demonstrate the performance of Australia’s exports and highlight some growing trends. In this report, we’re seeing the tail end of the decline in exports to mainland China having an impact on the total export figures; this is expected to wash out of the figures by the end of 2022,” Mr Bailey said.
“When mainland China is excluded from the data, wine exports to the rest of the world held steady in value, declining by 0.2 per cent to $1.99 billion and increasing by 1 per cent in volume to 622 million litres.”
There was a decline in exports to the United Kingdom, Hong Kong and Singapore while exports to North America and Southeast Asia show growth, particularly to the US, Canada, Malaysia and Thailand.
Bailey said that the report indicates growth in the US and Canada at both ends of the price spectrum: premium wine exports continued to grow and unpackaged commercial exports increased, as shipments of the record 2021 vintage accelerated following a slower than usual start due to global shipping pressures.
“Furthermore, the number of exporters to the US is at the highest level since 2008 and of the exporters to the US that ship wine at a value of $10 or more per litre free on board (FOB), 75 per cent experienced growth demonstrating that green shoots continue in the market for premium Australian wine,” he said.
Australian wine exporters shipped to 118 destinations during the period, up from 111 the previous year. The strongest growth came from North America, up 6 per cent to $604 million, and Southeast Asia (up 15 per cent to $291 million). However, the large decline to Northeast Asia (down 46 per cent to $321 million, driven by mainland China) and to Europe (down 12 per cent to $621 million, driven by the UK’s return to more normal shipping levels) outweighed the growth to other regions.
The top five markets by value were:
- US (up 5 per cent to $412 million. 21 per cent share of total export value)
- UK (down 14 per cent to $395 million. 20 per cent share of total export value)
- Canada (up 10 per cent to $190 million. 10 per cent share of total export value)
- Hong Kong (down 21 per cent to $163 million. 8 per cent share of total export value), and
- Singapore (down 16 per cent to $132 million. 7 per cent share of total export value).
The top five markets by volume were:
- UK (down 12 per cent to 222 million litres. 36 per cent share of total export volume)
- US (up 14 per cent to 139 million litres. 22 per cent share of total export volume)
- Canada (up 26 per cent to 62 million litres. 10 per cent share of total export volume)
- New Zealand (up 14 per cent to 32 million litres. 5 per cent share of total export volume), and
- Germany (down 7 per cent to 31 million litres. 5 per cent share of total export volume).
Report: Wine Australia’s Export Report is available for download here.
