Australian Wine Exports

Wine Exports

The 2019-20 financial year saw Australian wine exports remain relatively steady, despite challenging trading conditions caused by COVID-19, and were valued at an overall $2.84 billion (a drop of 1%). Overall export volumes declined 9% to 730 million litres (see Table 6). Despite this decline in value and volume, the average value of exports rose 9% to $3.89 per litre free on board (FOB) – continuing the increasing trend for the fifth year running (Table 6).

Mainland China remained the largest trading partner for Australian wine by volume in 2019-20, contributing $1.1 billion to the local economy and representing 39% of overall Australian exports in value. During 2019-20, the Asian powerhouse paid an average of $9.07 per litre for Australian wine (an increase of 22%) (see Table 7).

Australia’s largest export market by volume, the UK, purchased 232ML of Australian wine in 2019-20, a decrease of 2%. This slight drop in volume was compensated with an increase of 5% in the average price with Britons now offering $1.65 per litre for Australian wine (see Table 7).

The USA contributed $430 million in export value from the 137ML of wine shipped to the country in 2019-20, a decrease of 10%. Americans are now paying an average of $3.13 per litre to enjoy wine from Australia (see Table 7). The shift within the US market towards more premium Australian wine was seen, in part, to be the result of a successful marketing campaign called ‘Far From Ordinary’ which was funded by the Federal Government’s $50 million Export and Regional Wine Support Package (‘Average value of bottled exports reaches new record’, Wine Australia, 30 October 2019).

There was notable increases in both export volume and value to Europe in 2019-20, where 16% growth was recorded to reach a total of $678 million. This means exports to this region surpassed North America in value for the first time since 2011. The strongest growth came from Denmark and France with the Danish demand doubling the export volume to 19ML, totalling $37 million. French demand grew by about 40% in volume (7ML) and value ($12 million) (see Table 7).

Singapore continues pay the highest price of any country for Australian wine. The average price of $14.70 per litre paid by Singaporeans in 2019-20 is almost four times higher than the world average. The volume of Australian wine shipped to the island nation grew by a mere 4%, whereas value rose 3% for a total of $98 million (see Table 7).

Australia’s lower priced wines (below $10 per litre) accounted for 64% of the total amount of wine exported in 2019-20, a decline of 4%. This translated to a loss of $77 million in the 2019-20 fiscal year (see Table 8). However, losses in the lower price segment were compensated to a large degree by upticks in the higher priced categories. Wine products priced from $50-$99.99 soared 59%, adding $109 million in total value to Australian exports (see Table 8). This increase in demand for products in higher price categories shows a growing preference for premium Australian wine.

Exported wine shipped in bulk totalled 397ML or $518 million in 2019-20 (see Table 9). There was a reduction of 7% for bulk red in volume, but a minimal drop of 1% in value. The price for Australian bulk red wine increased by 7% to an average of $1.53 per litre (see Table 9). Exports of bulk white wine fell by 12% to 187ML, for a total value of $198 million (a drop of 6%). However, the price paid for bulk white wine was 7% higher compared to the previous fiscal year at an average of $1.06 per litre (see Table 9).

All product categories showed decreases in volume, with both red and white still wines losing 9% in volume for the year (see Table 9). Fermented sparkling wines lost 21% to fall to a final export volume of 5ML (see Table 9). On the bright side, the decreases in volume had very little impact on the value of Australian exports, principally due to the growth in fine wine exports. The average price per litre across all container types increased by 10% for red still wine with winemakers receiving on average $5.04 per litre, resulting in a total export value of $2.1 billion for the financial year (see Table 9). Meanwhile, white still wine earned an average of $2.11 per litre. This represented an increase of 8% on average price compared to the previous year.

Glass bottled red exports achieved $8.36 per litre with Australia exporting 218ML of the product, totalling $1.8 billion. The product category contributed 64% of the total Australian export value (see Table 9). A total of 91ML (a decrease of 1%) of glass bottled white wines were shipped, a decrease of 1%. The value of bottled whites grew by 2% to a total of $388 million, supported by the higher average price of $4.27 per litre (see Table 9).

Australian rosé experienced a similar trend to still wines, with a decrease in volume of 6% resulting in 15ML exported. However, an increase in the average price of 11% to $2.86 per litre resulted in the overall export value for the category climbing to $43 million (see Table 9).

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