Riesling is the world’s fifth most planted white winegrape variety with around 60,000 hectares globally.
Australia is a leading global producer of Riesling, ranking fifth in area under vine with just over 3,000 hectares. Riesling production in Australia has fallen over time, from 35,000 tonnes in 2008 to 21,000 tonnes in 2021. However, over the same period of time, the average purchase price has risen from a low of $594 per tonne in 2012 to $1,096 per tonne in 2021 (see Figure 1).
South Australia is the major producing state of Riesling in Australia, with a 72 per cent share of the national crush in 2021. Clare Valley is the largest producing region with 4,800 tonnes ahead of Eden Valley and Langhorne Creek (each around 2,400 tonnes) and Padthaway and the Riverland (both around 2,100 tonnes). Other regions that produce Riesling include Riverina, Goulburn Valley, Tasmania, Great Southern, Murray Darling – Swan Hill and Canberra District.
Australian Riesling was exported by 242 companies to 71 markets around the world. In the 12 months ended March 2022, Australia exported 3.6 million litres (400,000 cases) of Riesling valued at $18.4 million and average value of $5.09 per litre. Volume and value have been in decline since 2017, in line with the decline in Australian Riesling production. Exports peaked in the last decade at just over $25 million and 6.8 million litres (356,000 cases). While volume has declined, the average value has risen over the decade but this has fallen in the past two years (see Figure 2).
The top three export markets by value are the United States of America (US), United Kingdom (UK) and Canada. Together, they account for more than half the value of Riesling exports. The US has been the number one destination for more than 15 years. The UK has generally been number two over the same period while Canada has been at number three. While the volume of exports to the US and UK have been declining over the past decade, the average value has been steadily increasing to both destinations. To the US, the average value increased by 7 per cent to $4.99 per litre (roughly US$15 per bottle retail) in the 12 months ended March 2022 and has been increasing for seven consecutive years. For the same period, the average value if Riesling exports to the UK increased by 21 per cent to $7.66 per litre (roughly £7–8 per bottle retail) and has been increasing for nine consecutive years.
While the volume of exports to Canada is lower than it was a decade ago, it has increased over the past two years. This has come at the expense of average value, down 22 per cent to $3.38 per litre (roughly C$8 per bottle retail) in the past 12 months. More than 90 per cent of Riesling exports to Canada is priced at less than $5 per litre. While half the exports are bottled, a quarter are soft-packs and a quarter is shipped in bulk wine. British Columbia is the major provincial destination with 85 per cent of the volume.
Japan has moved into the top five export destinations for Riesling for the first time. In the 12 months ended March 2022, Riesling exports to Japan increased by 20 per cent to a record $1.2 million and in volume by 53 per cent to 228,000 litres (25,000 cases). Volume had been stable over the past decade until surging in the past 12 months. The import tariff on Australia bottled wine moving to zero in 2021 may have been a factor in driving some of this growth. Average value decreased by 22 per cent to $5.16 per litre (roughly ¥865 per bottle retail) and has been relatively stable over the decade. About three-quarters of Riesling exports to Japan is priced at less than $5 per litre. The biggest increase in volume has been in this price segment.
South Korea is the other big mover, jumping from a ranking of 29 to seventh over the past five years. Off a small base, Riesling exports to South Korea trebled in value and volume to a record $700,000 and 62,000 litres (7,000 cases) in 12 months ended March 2022.
There are zero import tariffs on Australian wine imported to South Korea, which may be a contributing factor. The average value increased by 1 per cent to $11 per litre (roughly ₩22,000 per bottle retail). Just over half the exports are priced at $10 or more per litre.
