AUSSIE WINE EXPORTS DECLINED 10% IN VALUE DRIVEN BY USA & UK
By Susan Lewis
Source: Wine Australia
Australian wine exports declined by 10 percent in value to AUD1.87 billion (USD1.25b) and 1 percent in volume to 621 million litres in the year ended June 2023, according to Wine Australia’s latest Export Report.
The decline in value was largely driven by a reduction in exports to the USA and UK, as lower-priced packaged exports continued to decline.
There were mixed results across the Asian region, including a decline in exports to Singapore and an increase in exports to Hong Kong, the two key trading hubs in the region, reflecting unpredictable market conditions at present.
While key emerging markets such as Thailand, Philippines and Vietnam grew in value during the period.
Wine Australia said the latest export results are partially reflective of the broader global trends in wine consumption.
Global wine consumption declined 3 percent in volume in 2022, but premium price segments bucking the trend with continued growth, albeit at slower rates than recent years.
“Wine consumption in mature markets is in decline, driven by decreases in the commercial price
segments. This is impacting Australia’s wine export performance, especially in the USA, as Australia is very exposed to the price segments in decline,” said Wine Australia's market insights manager Peter Bailey.
Wine exports in the segment above AUD5 per litre declined by 14 percent in volume and 9 percent in value. The markets driving the decline in this segment were Singapore, USA, Canada and the UK.
While growth in this segment to Hong Kong was able to offset part of the decline.
Australian wine exported to 117 global destinations during the year, up from 112 in 2022.
Sixty-six of these destinations recorded growth in the value of exports during the year, while 51 recorded decline.
The top five markets by value were:
• UK (down 14 percent to AUD364 million. 20 percent share of total export value)
• US (down 18 percent to AUD359 million. 19 percent share of total export value)
• Hong Kong (up 29 percent to AUD220 million. 12 percent share of total export value)
• Canada (down 6 percent to AUD163 million. 9 percent share of total export value), and
• Singapore (down 24 per cent to AUD128 million. 7 percent share of total export value).
The top five markets by volume were:
• UK (down 3 percent to 220 million litres. 35 percent share of total export volume)
• USA (down 3 percent to 135 million litres. 22 percent share of total export volume)
• Canada (up 43 percent to 77 million litres. 12 percent share of total export volume)
• New Zealand (down 3 percent to 31 million litres. 5 percent share of total export volume), and
• Germany (down 12 percent to 28 million litres. 5 percent share of total export volume).
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