The USA has joined China in growth of Australian wine export value

Market Bulletin | Issue 166
22 Jul 2019
Previous  | Next News

In the year ended June 2019, Australian wine exports increased 4 per cent in value free on board (FOB) to $2.86 billion and decreased in volume 6 per cent to 801 million litres (89 million 9-litre case equivalents). The volume decline was driven by a decrease of 7 per cent in shipments of wine below an average value of $2.50 per litre FOB. This resulted in a 10 per cent increase in the overall average value of exported wine to $3.58 per litre, the highest level since 2009.

Contributing to the overall increase in Australian wine export value were China (including Hong Kong and Macau) and the United States of America, up 7 per cent and 2 per cent respectively. Overtaking the USA as the largest export market in value in 2016, in the last financial year China made up 42 per cent of export value while the USA maintained a 15 per cent market share (Figure 1). Reflecting a higher premium being paid for Australian wine in both markets, the average value of exports has grown about 13 per cent for China and 3 per cent for the USA per year since 2012.

Figure 1: Market share of Australian wine export value

The decline in overall export volume is due to a combination of factors including smaller Australian vintages in 2018 and 2019, international supply pressures easing, and premiumisation of the market as consumers choose to drink less but better-quality wine at a higher price. Declines in volume have occurred across a number of markets including the United Kingdom (down 4 per cent to 26 million 9 litre case equivalents), the USA (down 4 per cent to 17 million 9 litre case equivalents), China (down 16 per cent to 17.1 million 9 litre case equivalents), Canada (down 4 per cent to 7 million 9 litre case equivalents) and Germany (down 16 per cent to 3.7 million 9 litre case equivalents).

Exporter performance

There were 2729 active exporters in the year ended June 2019, a 19 per cent increase from the previous year. During the period, 1866 companies either started exporting or increased the value of their exports, contributing $386 million to the growth in overall value. This growth was partially offset by 1248 exporters whose export value decreased or ceased shipment altogether; their exports declined by $266 million.

Value growth rates by exporter size illustrate largely positive performances (see Figure 2) but nearly all exporter size groups contributed to the fall in volume.

Figure 2: Export growth rates by exporter size

The largest exporters make up 2 per cent of the number of exporters but contribute 87 per cent of total volume of exported wine, while the smallest exporters make up 90 per cent of exporters but only 5 per cent of the volume.

Figure 3: Share of exporters and total volume by exporter size

Volume exported in MAT June 2019 # of exporters Share of exporters Million cases exported Share of total export volume
> 100,000 9l cases 52 2%                  77 87%
50,001 - 100,000 9l cases 39 1%                 2.7 3%
10,001 - 50,000 9l cases 194 7%                 4.0 5%
< 10,000 9l cases 2444 90%                 4.9 5%
Total 2729 100%                  89 100%

Price segments

In the year ended June 2019, there was robust growth in most price segments (see Figure 4). However, record levels were achieved in exports with an average value of $10 per litre and above in both value (up 15 per cent to $983 million) and volume (up 20 per cent 44 million litres). On the other hand, wine exports valued $5.00 and under declined in both value and volume (down 4 per cent and 9 per cent respectively).

Figure 4: Exports by price segment (million AUD FOB)

Price segment (A$/litre) MAT June 2019 Value change Growth rate
 $2.49 and under $513 -$37 -7%
 $2.50 to $4.99 $820 -$17.2 -2.1%
 $5.00 to $7.49 $381 $26 7%
 $7.50 to $9.99 $166 $7 4%
$10.00 to $14.99 $263 $53 25%
$15.00 to $19.99 $78 $4.2 6%
$20.00 to $29.99 $243 $76 46%
$30.00 to $49.99 $124 $18.4 17%
$50.00 to $99.99 $183 -$39 -17%
$100.00 to $199.99 $43 $22 102%
$200.00 + $48 -$8.1 -14%
Total value $2,864 $106 4%

For more information on exports please read the Export Report (available to levy-payers only).


Popular topics

This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.

Levy payers/exporters
Non-levy payers/exporters
Find out what you can purchase

This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.

Levy payers/exporters
Update your account details
Non-levy payers/exporters
Find out what you can purchase