Grape variety remains one of the most influential choice factors for consumers when buying wine.
Wine Australia analysed IWSR research from 2023 for ten key wine markets (representing 90 per cent of Australian wine sales) and found that grape variety was in the top two most important choice cues in seven of the ten markets.
The seven markets were:
- Australia (number 1 choice cue)
- United Kingdom (1)
- United States (1)
- Canada (2)
- New Zealand (1)
- Germany (2), and
- China (1).
In the other three markets – Japan, South Korea and Singapore – grape variety was the fifth most important choice cue. In Japan and South Korea, wine that matches or complements food was the most important factor and in Singapore, promotional offer was the most important.
In eight of the same 10 markets, red wine was the number one alcoholic beverage of choice among regular wine drinkers (see Figure 1). White wine was number one in the United Kingdom and New Zealand. Beer was the second choice behind red wine in the major Asian markets of Japan, Singapore, South Korea and China.
Figure 1: Alcoholic beverage repertoire among regular wine drinkers (top 2)
% = percentage of regular wine drinkers who have drunk the beverages in the past 12 months
Source: IWSR
Cabernet Sauvignon and Merlot top red varieties
The IWSR research shows that for red wines, Cabernet Sauvignon and Merlot are in the top two varieties chosen by regular wine drinkers in eight of the 10 markets. Cabernet Sauvignon is number one in Canada, Japan, South Korea and China, while Merlot is top in the United States, United Kingdom, Germany and Singapore.
Shiraz was number one in Australia and Pinot Noir in New Zealand. Apart from Australia, the only market among the 10 analysed where Shiraz is inside the top three is in New Zealand where it ranks third behind Pinot Noir and Merlot. The rankings of Shiraz in the other markets were:
- Fourth – United Kingdom, Canada, Japan and Singapore
- Sixth – Germany and China, and
- Seventh – United States and South Korea.
None of the 10 markets reported an increase in the popularity of Shiraz but there were five markets reporting a decline in percentage of drinkers reporting consumption over the past four years:
- Australia – from 49 per cent in 2019 to 42 per cent in 2023
- United Kingdom – from 41 per cent to 38 per cent
- New Zealand – from 42 per cent to 35 per cent
- Singapore – from 35 per cent to 29 per cent, and
- Canada – from 37 per cent to 28 per cent.
The decline in popularity of Shiraz in Australia is also supported by research on the Australian on-premise market. In a bespoke report prepared for Wine Australia in February 2024 by CGA by NIQ, Shiraz recorded the biggest drop in people nominating having consumed it in the past 12 months – an 11 percentage point decline in Australian wine drinkers consuming the varietal in the on-premise market.
Tempranillo growth leads Australia on-premise, but off small base
The decline in Shiraz does not appear to be offset by corresponding increases in other red varieties. For example, the CGA by NIQ data shows the strongest growth was a 3 percentage point increase in Tempranillo in the Australian on-premise market but this growth was off a small base.
The IWSR research shows that Tempranillo is ranked in the top five red varietals consumed in only one of the ten markets researched – Germany, where it is ranked fifth with 17 per cent of regular wine drinkers indicating they drink the varietal. In the United Kingdom and Japan, Tempranillo ranks sixth and in the other markets is generally ranked eighth to tenth.
The red blends category continues to make ground in the United States, ranking fourth and its share climbing two percentage points to 36 per cent of consumers reporting they have consumed the varietal. In other markets red blends are relatively flat or not among the top 10 varietals.
Pinot Noir is in the top five red varietals in all of the 10 markets.
Sangiovese and Grenache round out top red varieties
Sangiovese and Grenache are two red varieties that appear in the top 10 or just outside in most of the 10 markets.
Sangiovese has the highest ranking in Japan at number five and being consumed by 13 per cent of regular wine drinkers. In Australian wine’s big three markets of Australia, the United Kingdom and the United States it is ranked 8 to 9 with around 10 per cent of regular wine drinkers choosing it.
Grenache is not among the top five red varieties in any of the markets, with the variety ranking highest in Australia at number seven and 12 per cent of regular wine drinkers. In the United Kingdom and United States, Grenache is ranked ten and twelve respectively.
Sauvignon Blanc top white preference in six of ten markets
For white wines, the IWSR research shows that Sauvignon Blanc is either the number one or two variety in eight of the ten markets:
- Number one – Australia, United Kingdom, New Zealand, Singapore, South Korea and China, and
- Number two – Canada and Japan.
Chardonnay is the second most popular white variety, with a top two ranking in six of the ten markets:
- Number one – United States and Japan, and
- Number two – Australia, Germany, Singapore and South Korea.
Pinot Gris/Grigio was the number one white varietal in Canada and second in the United States, the United Kingdom and New Zealand. It is generally the third most popular white varietal in the other markets.
Sauvignon Blanc consumption is falling in most markets
Sauvignon Blanc is on the rise in only one of the markets – the United States (up from 36 per cent to 39 per cent). Those markets where Sauvignon Blanc has seen a fall in the share of regular wine drinkers who consume it are:
- Australia – from 52 per cent in 2019 to 48 per cent in 2023
- Canada – from 52 per cent to 48 per cent
- New Zealand – from 63 per cent to 55 per cent, and
- Singapore – from 49 per cent to 39 per cent.
For Chardonnay, consumption was generally either flat or in decline:
- Flat – United States, Canada, Japan, South Korea and China, and
- Declining popularity – Australia (49 per cent to 38 per cent), United Kingdom (51 per cent to 45 per cent), New Zealand (55 per cent to 50 per cent), and Singapore (45 per cent to 38 per cent).
The IWSR research indicates that in the ten markets, Riesling is a white variety that has a strong presence in the ten markets. It is ranked number one for white wines in Germany, number two in China and is top five in Australia, the United States, New Zealand, Japan and Singapore.
In the United States, similar to red blends, white blends are showing an improvement, with a four percentage point increase to 21 per cent and ranking at number six.