Australian wine exports surge
Australian wine exports have continued to surge, by 10% or AUD $201 million (by value), in the year to the end of June. China and Southeast Asia are the big drivers of this growth.
The total value of the year’s exports was AUD $2.31 billion.
Greater China (mainland China, Hong Kong and Macau) is the key to Australia’s current wine export revival.
Wine Australia’s annual export report says:
“In 2016–17, exports to Greater China increased by 33 per cent to AUD $721 million. The implementation of the China–Australia Free Trade Agreement at the end of 2015 has provided impetus to an already strong market.”
Australia is the world’s fifth biggest wine exporter, following France, Italy, Spain and Chile, and in the past year, its growth out-performed all of those countries.
It seems the biggest movers were sparkling moscato to the US, China and Japan, and pinot grigio to the US. Moscato exports more than doubled to AUD $30 million. Pinot grigio exports to the US increased by 16% to AUD $24 million. The US accounted for three-quarters of our pinot grigio exports.
There’s an encouraging trend towards higher-priced wines to the US: wine worth AUD $10 a litre FOB (Freight On Board) or more increased by 21 per cent to AUD $43 million.
While the UK is still Australia’s most important export market in terms of volume, the US is second to China in value. The US market increased by 3% to AUD $464 million, the highest value for five years.
Wine Australia’s chief executive officer Andreas Clark, said:
“Pleasingly, nearly all price-points experienced growth and there were benefits for exporters in all segments of the market.
“The strongest growth was in more premium wines, with all price segments of AUD $10 a litre FOB and above experiencing growth, and the strongest rate of growth for wines AUD $30–$49.99 a litre.”