NEWS
AUSSIE WINES’ EXPORT VALUE TO CHINA UP 7% AT AUD1.1B
By David Ma
16-5-2019
Australian wine exports to Greater China increased by 7 percent in value to AUD1.11b and decreased by 14 percent in volume to 154 million liters in the year ended March 2019, reflecting a trend of premiumisation in this market.
According to Wine Australia, the country’s wine trade body, the continued growth in the value of exports was an extremely positive trend for the sector.
It said the volume decline in the Greater China market is confined almost exclusively to exports in the below AUD2.50 per liter value segment, reflecting both a tightening of Australian supply in this segment and also the increased supply availability from competitors such as Chile.
“What we are seeing is a drop in volumes in the lower value categories and this places Australia well as the global consumer premiumises and drinks less but more expensive wines”, said Wine Australia’s CEO Andreas Clark.
He said Australia has outperformed other competitors in the Greater China market, with the Global Trade Atlas figures showing that in the year ended February 2019, Australia had a 29 percent share of Greater China’s imported wine market – up from 26 percent a year ago.
The Greater China market included mainland China, Hong Kong and Macau.
The total value of Australian wine exports increased by 5 percent to AUD2.7b in the 12 months to March 2019, with the average value per liter climbing to AUD3.41, the highest level since 2009.
In Northeast Asia, including mainland China, Japan and Korea, export value was up 8 percent to AUD1.2b.
Southeast Asia is also a bright spot having seen export value up 7 percent to AUD170m from a much lower base.
Wine Australia’s fastest growing market, however, is the Middle East with export value up 16 percent to AUD32m.
“We are also seeing positive trends in the USA off-trade market where sales of Australian wine grew 3 percent in value to USD521m in the year ended December 2018. Even more encouraging is that Australian wine priced above USD15 per bottle has also grown by 3 per cent according to market monitor IRI Worldwide,” said Mr Clarke.
Mr Clark said Australian wine supplies would remain tight in the short term with much of the 2018 vintage yet to hit the market and the expectation that 2019 vintage would be below the long-term average.
The regions in growth are:
• Northeast Asia, up 8 percent to AUD1.2b
• Southeast Asia, up 7 percent to AUD170m
• the Middle East, up 16 percent to AUD32m
• Oceania, up 15 percent to AUD107m
• Europe, up 3 percent to AUD612m
(the writer can be contacted at: DavidMa@thewinechronicle.com)
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