Stable performance from a mixed blend

In its latest export report, Wine Australia says the industry has had a “relatively stable period” in the last 12 months, recording a 1 per cent drop in value and 2 per cent drop in volume to March.

Wine Australia manager – Market Insights, Peter Bailey, said that growth in some Asian and European markets have been offset by a decline in North America.

“The largest drivers of value growth in the past 12 months were Hong Kong, New Zealand, and the UK, while exports to Canada, the US, Singapore, South Korea, Indonesia, and Malaysia declined,” Bailey said.

He said WA expected volatility to continue at an individual market level, but recent data showed overall declines have stabilised.

“Asia was the largest region by value for Australian wine exports, with a 36 per cent value share. Strong growth in North-East Asia – driven by Hong Kong – was tempered by a decline in the value of exports to South-East Asia – driven by Singapore, Indonesia, and Malaysia – during the period,” he said.

Exports to Hong Kong increased 60 per cent to $290 million, mainly in red wine, with the figure reflecting Hong Kong’s role as a major trading hub.

Japan was up four per cent to $48 million, while China grew 21 per cent to $13 million, but off a low base. Bailey said the recent lift in tariffs had little impact on the results.

The top five markets by value were:

• UK (up 2 per cent to $367 million. 20 per cent share of total export value)
• US (down 7 per cent to $356 million. 19 per cent share of total export value)
• Hong Kong (up 60 per cent to $290 million. 15 per cent share of total export value)
• Canada (down 15 per cent to $147 million. 8 per cent share of total export value), and
• Singapore (down 11 per cent to $119 million. 6 per cent share of total export value).

The top five markets by volume were:

• UK (up 10 per cent to 228 million litres. 37 per cent share of total export volume)
• US (down 13 per cent to 127 million litres. 21 per cent share of total export volume)
• Canada (up 2 per cent to 74 million litres. 12 per cent share of total export volume)
• New Zealand (up 6 per cent to 30 million litres. 5 per cent share of total export volume), and
• Germany (down 5 per cent to 26 million litres. 4 per cent share of total export volume).

The full report is here.