White wine’s growing popularity

Australia’s top white varieties are growing in popularity in our key export markets, particularly for exports valued at $10 and higher per litre FOB.

Chardonnay is our most planted white variety, with more hectares of Chardonnay planted than total plantings for the next four most planted white varieties – Sauvignon Blanc, Semillon, Pinot Gris/Grigio and Riesling. (National Vintage Report 2016)

Shiraz is far and away Australia’s number one exported variety[1] in the $10 and above category, but while the value of Shiraz exports is growing, it is doing so at a slower rate than the value of some of the white varieties. Between 2012 and 2016, exports of Chardonnay had a calculated average growth rate (CAGR) of 18 per cent and Sauvignon Blanc 17 per cent, compared with Shiraz at 14 per cent.

The United States (US) is Australia’s number one market for white wine and it is much more weighted towards white wine than other markets on average. In the USA market, 50 per cent of Australian exported wine is white (compared with 39 per cent across all markets).  

In the $10 per litre and above category, the US is the number one destination for Australian Sauvignon Blanc and in 2016, the value of Sauvignon Blanc exports more than doubled to $1.8 million compared with the previous 12 months. The CAGR since 2012 is 87 per cent. Growth of other white varieties in the US market has also been particularly strong in this category (see table below). While Pinot Gris exports started from a low base, they have grown by almost 200 per cent every year since 2012.

China is the number one destination for Australian Pinot Gris at $10 and above FOB, taking 28 per cent by value of all wine in this category. The UK is the number one market for Riesling (taking one quarter of Australian exports) and Singapore receives the most Australian Chardonnay (25 per cent) at $10 per litre and above FOB, with an impressive average growth rate of 37 per cent since 2012.