Australian wine exports continue to set records, with a new high for the average value of bottled wine exports of $5.74 per litre and exports to China (including Hong Kong and Macau) increasing by 51 per cent for the year to March 2018 to reach $1.04 billion – a first for exports to a single country – according to data released by Wine Australia today.
Wine Australia Chief Executive Officer Andreas Clark said the 12 months to March saw exports increase by 16 per cent in value to reach $2.65 billion – the highest value in a decade – and volume also increased by 10 per cent to a near-record level of 844 million litres or 94 million 9 litre case equivalents.
Clark said as value growth outpaced volume growth, the average value per litre of all Australian wine exported increased by 5 per cent to $3.14 per litre.
The value of bottled wine exports increased by 15 per cent to $2.15 billion, the highest value since 2009. The average value of bulk wine also increased, by 8 per cent to $1.05 per litre, the highest value since 2009.
Higher value wine exports grew substantially with exports of wine above $10 per litre reaching a new peak of $779 million for the year to March 2018.
‘Mainland China has now overtaken the USA to become Australia’s second largest export market by volume. Pleasingly there was very strong growth at all price points as imported wine becomes more approachable and is increasingly consumed by middle-class drinkers and seen as suitable for consumption at informal gatherings and while relaxing at home.’
Clark said that while the commercial end of the USA market was in decline, contributing to the drop in volume, there had been strong growth in the premium sectors. For wines $10 per litre and over, the strongest contribution came from the $30–49.99 segment, which increased in value by 25 per cent to $5 million.
According to IRI Worldwide, in 2017, Australian sales in the USA off-trade market declined by 1 per cent in value but there was strong growth in two price segments. At US$8–11.99 per bottle, Australian sales doubled while at US$20–24.99 per bottle grew by 22 per cent.
Exports to the United Kingdom (UK), Australia’s largest export destination by volume, increased in value by 9 per cent to $373 million and in volume by 8 per cent to 241 million litres. Average value increased slightly by 1 per cent to $1.55 per litre.
In the UK off-trade retail market Australian sales increased by 2 per cent in value in 2017, maintaining the nation’s long-held number one position in the UK retail market according to market data analysts, Nielsen.
On the domestic front, Australian wine sales in the off-trade retail market increased by 3 per cent in value to $3.5 billion in the 12 months ended 4 March 2018, with the strongest growth occurring in the $15–30 per bottle segment according to IRI MarketEdge.
Clark said excellent vintage conditions in Australia would sustain the sector’s growth as the relatively cool, dry summer had produced high-quality grapes and winemakers are excited about the exceptional quality of the 2018 vintage wines.