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, according to Wine Australia’s Export Report.
Although the figures are an improvement on than those reported in the September 2023 Export Report, the results are still well below long-term averages.
Wine Australia market insights manager 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,” Mr Bailey said.
“This includes the United Kingdom, Australia’s largest export market by volume.”
“Pleasingly, Australia’s exports to the UK grew in volume for the first time since mid-2021.
“Both the United States 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.”
Mr Bailey said the decline in exports to Europe and North America resulted in their share of export value dropping to 29 and 27 per cent respectively, meanwhile, Asia’s share of export value grew 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,” he said.
“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 decline in Australia’s exports comes at a time when most wine producing countries are reporting decreasing sales.
The global alcohol market is softening and impacting the entire wine category, especially in mature markets.
The trend has been attributed to a combination of global economic tightening resulting in less discretionary spending and consumers being more conscious of their health.
International Wine and Spirit 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.
Further, 2023 was the worst performance for the alcohol market in the United States since 1991, declining by 5 per cent in total servings, according to research.Top five varieties exported in still red wine products in 2023:
– Shiraz, down 9 per cent to 133 million litres
– Cabernet sauvignon, up 2 per cent to 85 million litres
– Merlot, up 3 per cent to 39 million litres
– Pinot noir, down 15 per cent to 4.3 million litres, and
– Petit verdot, down 17 per cent to 3.2 million litres.
Top five varieties exported in still white wine products in 2023:
– Chardonnay, down 9 per cent to 146 million litres
– Pinot gris/grigio, up 21 per cent to 47 million litres
– Sauvignon blanc, down 0.2 per cent to 27 million litres
– Colombard, up 13 per cent to 9.2 million litres, and
– Semillon, up 5 per cent to 6.4 million litres.
