Continuing growth in demand for Australian premium wines
Market Bulletin | Issue 44
The latest Wine Australia Export Report for the 2016 calendar year shows that Australian wine export value grew by 7 per cent to $2.22 billion in 2016, volume grew by 1 per cent to 750 million litres and average value grew by 6 per cent to $2.96 per litre free-on-board (FOB), the highest average value since 2009.
This value growth was driven by bottled exports, particularly those at higher price points. Bottled exports grew by 10 per cent to $1.8 billion. The average value of bottled exports hit a calendar year record, up by 5 per cent to $5.48 per litre FOB. Exports at $10 and above per litre increased by $93 million (20 per cent) to $574 million.
Exports by market
The top five markets by value were:
- Mainland China (23 per cent of value)
- The USA (21 per cent)
- The United Kingdom (16 per cent)
- Canada (9 per cent)
- Hong Kong (5 per cent)
Exceptional growth to mainland China continued, with export value up 40 per cent to a record $520 million.
Exports to the USA were up by 3 per cent to $458 million, driven by a rise in the average value of bottled wine exports, up by 9 per cent to $3.95 per litre FOB.
The UK market continues to be our largest in volume terms but, because 80 per cent of wine is shipped in bulk, it ranks third in value and exports were down 5 per cent to $355 million. The market did see strong rates of growth in exports of our higher priced wines. Exports priced at $5 or more per litre grew by a healthy 23 per cent to $68 million. The growth was even stronger for exports at $10 or more per litre, which grew by 25 per cent to $28 million.
Exports by variety
Red wine continues to be the dominant Australian category, with a 73 per cent share of export value. Red wine grew by 9 per cent to $1.6 billion, while white wine grew by 2 per cent to $537 million. Shiraz accounted for 23 per cent of total export value at $513 million.
Visit the Market Insights section of our website for more detailed reports by market, variety and GI region.