In recently disclosed data by Wine Australia, it has been revealed that Australian wine exports experienced a two percent dip in value, amounting to $1.90 billion, and a three percent decrease in volume, totaling 607 million litres, over the 12 months leading to December 2023.
The global trend of a softer alcohol market has evidently impacted the Australian export sector, mirroring the challenges faced by other wine-producing nations that are grappling with reduced sales and exports.
Despite showing improvement from the figures reported in September 2023, the results fall below long-term averages, underscoring the formidable challenges presented by adverse global trends. IWSR research further highlights a “significant negative shift” in alcohol spending, attributed to “economic moderation.”
Peter Bailey, Wine Australia’s Manager – Market Insights, elucidated that the decline in Australia’s export value in 2023 was primarily steered by Europe and North America, with exports diminishing by seven and twelve percent, respectively.
“In Europe, exports to the top 15 markets saw a reduction in value due to higher inflation rates compared to North America and Asia, along with prevailing supply chain issues. Notably, the United Kingdom, Australia’s largest export market by volume, experienced a decline in value. Encouragingly, Australia’s exports to the UK demonstrated growth in volume for the first time since mid-2021.
“The decrease in North America’s value was contributed to by both the United States and Canada. In 2023, packaged shipments to these markets continued their decline, and unpackaged shipments, which were previously on the rise, have now started to moderate.”
Despite a seven percent reduction in value, amounting to $364 million, the United States retained its position as the leading market by value, commanding a 19 percent share of the total export value and standing as the second key market by volume.
Similarly, the United Kingdom, accounting for 19 percent of the total export value, witnessed a three percent decline in value to $361 million. However, it registered a two percent increase in volume, reaching 220 million litres and representing a 36 percent share of the total export volume.
Bailey added, “The decline in exports to Europe and North America has resulted in their share of export value dropping to 29 and 27 percent, respectively. Meanwhile, Asia’s share of export value has grown to 37 percent.”
“Hong Kong and Singapore emerged as notable destinations for Australian wine in Asia, propelling the region’s value growth. Moreover, the number of exporters to Hong Kong increased, reaching 531 in 2023, up by 138 export businesses. Hong Kong and Singapore, being crucial trading hubs in the Asian region, also serve as transit points for wine shipments to other markets.”
Hong Kong has secured the third spot in terms of market value, experiencing a remarkable 75 percent surge to $290 million, now holding a 15 percent share of the total export value. Canada follows with an eight percent share, and Singapore holds a seven percent share.
