Wine Australia’s Export Report, released today, has recorded a significant decrease in both the value and volume of Australian wine exports, reflecting worrying global trends. The 2023 data shows that exports decreased 2% in value to $1.9 billion, and 3% in volume to 607 million litres, in the 12 months ending on December 31st.
While the figures were an improvement on the latest Export Report released in September 2023, they fell significantly below long-term averages. Dwindling exports to European and North American markets are listed as significant catalysts of the overall decline.
“The decline in exports to Europe and North America has resulted in their share of export value dropping to 29 and 27 per cent respectively. Meanwhile, Asia’s share of export value has grown to 37 per cent,” said Peter Bailey, Wine Australia Manager – Market Insights.
“In Europe, exports to the top 15 markets declined in value as the region suffers through higher inflation rates than North America and Asia, as well as supply chain issues.
“This includes the United Kingdom (UK), Australia’s largest export market by volume. Pleasingly, Australia’s exports to the UK grew in volume for the first time since mid-2021.”
Another stakeholder of note is the Hong Kong market, which increased in value by 74% over 2023 to be worth $290 million. This positions it as the 3rd most significant export market by value, responsible for 15% of Australian wine’s total export value.
“Hong Kong and Singapore were stand out destinations for Australian wine in Asia, driving the growth of value to the region. Further, the number of exporters to Hong Kong also grew – up 138 export businesses to a total of 531 in 2023. Hong Kong and Singapore are key trading hubs in the Asian region and, as such, some of the wine is on-shipped to other markets,” said Peter.
The decline in Australia’s exports parallels global patterns, which have resulted in the contraction of the entire global wine category. In the first half of 2023, IWSR noted “a significant negative shift” in spending on alcohol, with Asia being the only region that didn’t feature a negative trend. A more detailed reflection on both the domestic and global forecast of wine can be found here.
The 2023 Export Report was published by Wine Australia, the statutory body for research, innovation, marketing and regulation for Australia’s grape and wine sector. The full report is available publicly on their website.
