• Wine Australia’s latest Export Report shows a decline in both value and volume in Australian exports.
    Wine Australia’s latest Export Report shows a decline in both value and volume in Australian exports.
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Wine Australia’s latest Export Report has revealed Australian wine exports declined by 2 per cent in value to $1.90 billion and 3 per cent in volume to 607 million litres in the 12 months to December 2023. Despite an improvement compared to previous figures, the industry body said the results were well below long-term averages.

Wine Australia manager for market insights Peter Bailey said that Europe and North America drove the reduction in Australia’s export value over the year, declining by 7 and 12 per cent respectively.

“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,” said Bailey.

This includes the United Kingdom (UK), Australia’s largest export market by volume. However, Australia’s exports to the UK grew in volume for the first time since mid-2021.

“Both the United States (US) and Canada contributed to North America’s decline in value. In 2023, packaged shipments to these markets continued their decline and unpackaged shipments, which were growing strongly, have started to ease off,” said Bailey.

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.

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.

The Export Report said the decline in Australia’s exports was occurring at a time when most wine producing countries are reporting decreasing sales. 

Additionally, the global alcohol market is softening, impacting the entire wine category, especially in mature markets. This trend has been attributed to a combination of global economic tightening resulting in less discretionary spending and consumers being more conscious of their health. IWSR research conducted in the first half of 2023 indicated a “significant negative shift” in spending on all alcohol, with all regions except Asia trending negative. Consumers cited “economic moderation” as the main reason.

The top five markets by value were:

United States (down 7 per cent to $364 million. 19 per cent share of total export value)

United Kingdom (down 3 per cent to $361 million. 19 per cent share of total export value)

Hong Kong (up 74 per cent to $290 million. 15 per cent share of total export value)

Canada (down 24 per cent to $143 million. 8 per cent share of total export value), and

Singapore (up 1 per cent to $133 million. 7 per cent share of total export value).

The top five markets by volume were:

United Kingdom (up 2 per cent to 220 million litres. 36 per cent share of total export volume)

United States (down 5 per cent to 134 million litres. 22 per cent share of total export volume)

Canada (up 7 per cent to 73 million litres. 12 per cent share of total export volume)

New Zealand (down 2 per cent to 29 million litres. 5 per cent share of total export volume), and

Germany (down 7 per cent to 27 million litres. 4 per cent share of total export volume).

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