New Zealand wine’s “largest ever” year of export growth

Image courtesy New Zealand Winegrowers Inc, Misha’s Vineyard.

New Zealand Wine’s annual report has confirmed the country’s “largest ever one-year growth” for wine exports. Released on Friday, the report highlighted the industry’s ability to bounce back after the pandemic, with export value growing NZ$450 million in the year to 30 June 2023.

The new report reiterates the growth in value, recording a 23 per cent increase in value to NZ$2.4 billion.

US sales led the export growth, increasing 25% to NZ$870 million in the past year. The report suggests that US growth could see it become a billion dollar market in the future.

Image courtesy New Zealand Winegrowers Inc, Escarpment Vineyard.

 

Despite producing less than 2% of the world’s wine, New Zealand are now the most export-focussed wine industry in the world, and the sixth-largest exporter by value, with nearly 90% of its wine sales occurring outside of the country. Whilst this confirms the international demand for New Zealand wine, the report acknowledges that this makes the industry particularly vulnerable to changes in global trade.

Alcohol tax changes in the UK and inflation may add uncertainty to future New Zealand wine sales, although the industry has outperformed during market downturns in the past.

The damage caused by Cyclone Gabrielle is also expected to impact producers for years to come, with some vineyards completely destroyed by the storm. Whilst an improved fruit set in Hawke’s Bay was enough to counteract the effects of the cyclone, production in Gisborne was down 43%.

Overall, the production from Vintage 2023 was down 6% from last year.

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