Wine Production in Australia - Industry Market Research Report

Glass half full: Reduced per-capita alcohol consumption is shifting demand towards the top shelf

Wine producers have faced mixed trading conditions over the past five years. They have benefited from growing global demand for Australian wine and premiumisation trends. In recent years, a depreciating Australian dollar and several free trade agreements with countries in the Asia-Pacific region have benefited exports. Nonetheless, slow growth in total alcohol consumption has limited domestic demand. The COVID-19 pandemic adversely affected the food-service market over the three years through 2021-22. However, the Chinese Government's decision to impose tariffs in excess of 100% has had the greatest effect on the industry. Australia exported over $1.0 billion of wine to China in 2019-20. This fell to below $25.0 million in 2021-22. Overall, revenue is expected to drop at an annualised 5.8% over the five years through 2022-23, to $6.1 billion. Weak global economic conditions are weakening demand for wine and cider in 2022-23, with industry revenue anticipated to fall 2.2%.

The industry purchases grapes and other key ingredients to process into wine, port and wine-based alcoholic beverages. These products are packaged in bottles or casks and sold to wine merchants and retail outlets. The industry also includes the production of other alcoholic beverages not categorised elsewhere, like cider.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.