Australian wine exports grow by $201m

19 July, 2017 by Ayoung

Wine Australia has released its 2017 Export Report, which shows the value of Australian wine exports has increased by $201m, or 10 per cent, in 2016-17.

That increase, which was underpinned by strong export growth to China and the US, puts total Australian wine exports at $2.31bn. Australia is now the world’s fifth largest exporter of wine behind France, Italy, Spain and Chile although over the 2016-17 year Australia outperformed each of those four larger export markets in its rate of export growth.

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Wine Australia Chief Executive Officer Andreas Clark said: “Pleasingly, nearly all price points experienced growth and there were benefits for exporters in all segments of the market.

“The strongest growth was in more premium wines, with all price segments of $10 per litre FOB and above experiencing growth, and the strongest rate of growth for wines $30–49.99 per litre FOB.

“There were a record 1997 exporters last financial year and 69 per cent contributed to the total increase in value shown.

“An interesting development from last year was the growth in the carbonated wine category, which includes varieties such as Moscato. Exports more than doubled to $3m. The United States was the destination for 35 per cent of the carbonated wine exports, with mainland China (15 per cent) and Japan (14 per cent) the other major destinations.”

Exports to China and Asia continue to drive growth, with exports to Greater China, which includes mainland China, Hong Kong and Macau, up by 33 per cent to $721m. Wine Australia said that the implementation of the China-Australia Free Trade Agreement at the end of 2015 helped provide impetus to an already strong market.

Mainland China’s position as the number one destination for Australian wine exports by value was consolidated in 2016–17, with exports growing by 44 per cent in value to $607m.

Southeast Asia also saw an increase in exports, up by $20m (14 per cent) to a record $162m. Exports also grew to North America by $5m (one per cent) to $651m, and the Middle East by $3m (18 per cent) to a record $2m.

The only regions to record negative value growth were Europe, which declined by one per cent to $568m, and Oceania, which also fell by one per cent to $87m.