Pinot Noir: a tale of two wine styles
Market Bulletin | Issue 42
Pinot Noir is the 10th most planted winegrape variety in the world out of more than 1000 varieties (Source: Adelaide University). At 86,700 hectares the variety accounts for an estimated 1.9 per cent of world plantings in 2010 (see table).
In Australia, it is the 6th most planted variety with approximately 5000 hectares planted, accounting for 4 per cent of the total planted area (Source: ABS 2015).
While most other major varieties planted in Australia (including Shiraz) have declined since 2010, Pinot Noir plantings have continued to grow steadily and have increased by more in percentage terms over the past 30 years than Shiraz (see chart).
The average price paid for Pinot Noir grapes across Australia in 2016 was $896 per tonne, the second highest of any of the top 20 grape varieties. This reflects its proportionally higher representation in the cooler regions, as well as its temperamental nature in the vineyard – making it difficult to grow.
Pinot Noir is a versatile grape from a winemaking perspective making both lighter style reds and whites. Its versatility is reflected in our export figures.
Australia’s exports of Pinot Noir in the year ended September 2016 were made up of 27 per cent sparkling and 73 per cent dry red wines, compared with Chardonnay (3 per cent sparkling) and Shiraz (1 per cent sparkling).
Premium Pinot Noir exports have been growing particularly strongly – with exports at $10 more increasing by 33 per cent in the year ended September 2016.
The top destinations for Pinot Noir exports were the US, UK, New Zealand, Canada, China and Japan.
The US was the major Pinot Noir market, accounting for 59 per cent share or $14 million of wine exports labelled as Pinot Noir or Pinot Noir blends.
Exports to New Zealand – itself known for its Pinot Noir – also grew by 13 per cent in value.
The US off-premise market for Pinot Noir is valued at US$935 million, and grew by 8 per cent in the year to October 2016 (Source: IRI data). Australia currently has only 3 per cent of this market, worth US$23 million. A doubling of our market share would only account for an additional 2 per cent of the market. As the second largest importer of wine to the US (by volume), Australia is well-placed to take advantage of this opportunity.
In the domestic market, the increased popularity of Pinot Noir is also evident. Growth in Pinot Noir off-premise sales has exceeded that of all reds combined for the past eight quarters – IRI November 2016 (See chart).
Overall, the picture for Australian Pinot Noir is positive and opportunities exist for growth in our major export markets as well as domestically.