Wine Australia has released its Export Report, which has shown that exports of Australian wine increased by 15 per cent to $2.56bn in the 12 months to the end of December 2017.
The 15 per cent increase in the value of exports is the highest annual growth rate since 2004 and it was also a record-breaking year for volume, with exports growing by eight per cent to 811 million litres, a calendar year high.
Once again China and the rest of Northeast Asia were the primary drivers in the growth of exports, as Wine Australia CEO Andreas Clark explained.
“Growing demand for premium Australian wine, particularly in Northeast Asia, increased the value of bottled wine exports by 17 per cent to $2.1bn, while the average price per litre for bottled wine grew by three per cent to a record $5.63,” he said.
Clark added that it was notable that exports of wines priced above $10 per litre grew by 29 per cent to a record $738m.
Exports to Northeast Asia increased by 47 per cent over the year to go past $1bn for the first time.
Wine Australia said: “Australian wine has experienced outstanding growth in exports to mainland China over the last decade.
“The implementation of the China–Australia Free Trade Agreement in 2015 provided impetus to an already strong market. The export figures for 2017 suggest Australia is well-placed for this trend to continue.
“The value of exports increased by 63 per cent to $848m and volume by 54 per cent to 153 million litres. The average price increased by six per cent to $5.55 per litre free on board (FOB).”
Exports also grew in Europe, by one per cent to $576m, in Southeast Asia by two per cent to $165m and in Oceania by eight per cent to $94m.
Although the United States remains the second biggest market for Australian wine, behind China, exports to North America decreased slightly by two per cent to $636m.
In terms of value to five biggest markets for Australian wine exports in 2017 were:
- China mainland (33 per cent of total export value)
- United States (18 per cent)
- United Kingdom (14 per cent)
- Canada (7 per cent), and
- Hong Kong (5 per cent).
Australia’s top five markets by volume in 2017 were:
- United Kingdom (28 per cent share of total export volume)
- United States (21 per cent)
- China mainland (19 per cent)
- Canada (8 per cent), and
- Germany (5 per cent).
Shiraz remains the most popular grape, followed by Cabernet Sauvignon and then Shiraz/Cabernet Sauvignon. The top five exported varieties are rounded out by Chardonnay in fourth and Merlot as the fifth most popular.