Europe has been a major destination for Australian wine since exports began more than a century ago. Today, more Australian wine is shipped to Europe than to any other region.
In 2017, 38 million cases of Australian wine were exported to Europe compared to 26 million cases to North America and 22 million cases to Asia.
One European destination that is seeing a resurgence in Australian wine exports is the Netherlands.
The Netherlands is Australia’s third largest European destination behind the United Kingdom and Germany. In 2017, 76 Australian exporters shipped 2 million cases of wine to the Netherlands valued at $36 million.
After peaking at $81 million in 2007, tough global trading conditions resulted in Australian exports falling to $29 million in 2014. However, exports have started to recover, growing in value by 8 per cent per annum over the last three years (see figure 2). The growth rate has accelerated, with export value up 16 per cent in 2017.
Figure 1: Top ten wine country of origins in the Netherlands wine market, 2016
Source: IWSR
The Netherlands is the eighth biggest wine market in Europe with total sales of 42 million cases in 2016. Australia is the sixth ranked country of origin (see figure 1).
Figure 2: Australian wine exports to the Netherlands over time (A$ million FOB)
Source: Wine Australia
Consumer trends
Like many markets around the world, the premiumisation trend is evident in the Netherlands. The general trend is to consume less but better-quality wine. The average unit price for wine has been increasing. Dutch wine consumers are more interested in specific grape varieties and discovering new wine regions, and are willing to pay a little more for wine that is perceived to be special.
In terms of price point movement, there is a shift towards the higher price points. This trend is reflected in Australian exports to the Netherlands. While a small segment, Australian exports at $7.50 or more per litre increased by 36 per cent to $2 million in 2017.
White wine’s popularity growing
Within the still wine category, still red wine has been under pressure and has slowly declined in volume sales terms. There has been a shift towards still white wine; this type of wine has increased in popularity as it is perceived as lighter, fresher and easy to drink.
According to Wine Intelligence, white wine is the most popular alcoholic beverage among regular wine drinkers in the Netherlands (see figure 3). White wine is consumed by 81 per cent of regular wine drinkers placing the category just ahead of red wine and quite a margin in front of beer.
Figure 3: The share of regular wine drinkers who have consumed the following beverages
Source: Wine Intelligence
The trend towards white wines can also be seen in Australian exports. In 2017, Australian white wine exports to the Netherlands increased by 37 per cent to $17.4 million, more than three times the growth rate of red wine exports, which increased by 10 per cent to $17.8 million.
Chardonnay is the biggest category in whites and exports increased by 18 per cent to $9 million. Other varieties to record strong growth off small bases include Sauvignon Blanc (up 73 per cent to $3 million) and Pinot Gris/Grigio (more than quadrupling to $1.2 million).
Supermarkets are the most popular channel for purchasing wine ahead of off-licence chains and wine shops (see figure 4). Only 9 per cent of regular wine drinkers indicate they purchase wine via the internet.
Figure 4: The share of regular wine drinkers who have bought wine from the following places
Source: Wine Intelligence
Presenting Australian wine to Europe and ProWein
European markets such as the Netherlands remain important to Wine Australia. As part of its on-going commitment to developing opportunities in the region, Wine Australia returns to ProWein from 18–20 March, with a large stand in the middle of the New World hall. Considered Europe’s most important wine event, ProWein is a three-day trade fair that takes place every year in Düsseldorf in Germany.
With over 500 wines, tasting events every day, ample meeting space, a wine bar and happy hours, the Wine Australia stand is the place to be at ProWein.
Quality, diversity and innovation are the hallmarks of Australian wine and this is exactly what will be on show at ProWein.
For more information on the Netherlands and Europe more broadly please contact the Wine Australia team at europe@wineaustralia.com