Wine Industry Statistics - Wine Exports

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Australian Wine Exports

According to the December 2009 Wine Export Approval Report (WEAR) from the Australian Wine and Brandy Corporation, Australian wine export volumes increased by 9% in calendar year 2009 to reach 764 ML valued at A$2.3 billion (Table 15). Overall volume has been on a general rise since October 2008, with only a few exceptions. The volume of exports is still down on the record year of 2007 (Table 16).

Significant influences on export performances in the period include: adjustments in excess supply through opportunistic bulk wine shipments, the strong Australian dollar undermining Australia's competitiveness at home and overseas markets and adding to the supply pressures, shipping branded wine in bulk for offshore packaging, the global economic downturn with resultant trading down in the market place, and growth in global competition.

Driving the growth in volumes in the past year was an increase in bulk shipments of 119 ML more than offsetting a 53 ML decline in bottled shipments. In the past year, the share of bulk wine as a percentage of total wine exported increased by 13 percentage points to 39% while the bottled share declined by the same margin to 60%. While this represents a dramatic shift towards bulk for Australian wine shipments, it is notable that the current shares bring Australia more into line with the bulk wine profiles of many other wine exporting countries such as Chile (40%), Spain (53%), Italy (33%), South Africa (50%), the US (47%) and Argentina (30%).

In 2009, growth was achieved in the value of Australian wine shipped to China, the US, Hong Kong, Finland, Malaysia, and Sweden. China was the clear stand-out with the value of exports to the market increasing by 77% (A$57 million) to reach A$130 million. This ranked China as Australia's fourth largest market by value (up one place) but number one for value growth. Strong growth in both bottled, up 60% (A$41 million), and bulk, up 378% (A$16 million), contributed to this growth.

The US maintained its position as Australia's number one market by value by recording the second largest value growth, up 3% (by A$17 million) to reach A$691 million. This result was due to a 146% increase in the value of bulk shipments to the market outweighing a 5% decline in the value of bottled shipments. Hong Kong ranked third for value growth, becoming the ninth largest market by value (up four places). The value of exports to Hong Kong increased 22% (by A$8 million) to reach A$44 million, continuing the impetus provided by removing excise tax on wine in Hong Kong, in mid-2008. At 95% of the volume, bottled shipments represent by far the major component of shipments to Hong Kong, and value growth was driven by a 20% bottled volume increase to reach 6 ML combined with a 2% increase in bottled average value.

While Finland was ranked only sixteenth in total value exported, it ranked fourth in value growth in 2009. The value of exports to Finland increased 18% (by A$3 million) to reach A$18 million. Driving the growth were a 167% increase in the value of bulk wine shipments (up by A$2 million).

Malaysia ranked fifth for value growth and maintained its ranking as the fifteenth largest market by value. The value of exports to Malaysia grew 13% (A$2.5 million) to reach A$21 million. Contributing to this performance were a 12% increase in the average price of bottled exports and, to a lesser extent, 1% growth in bottled export volumes.

Sweden jumped two places to become the tenth largest market by value on the back of the fifth largest increase in value, up 7% (by A$2 million) to A$41 million.

Exports of white wine increased by nearly twice the volume and just under three times the rate of red wine exports in 2009. White wine shipments increased by 16% (up 41 ML) to reach 298 ML, increasing the white share of exports by 2% to be 39%. In contrast, red wine shipments increased 6% (up 24 ML) to reach 449 ML and the red share of exports fell two percentage points to 59%. An increase in bulk white (63 ML) offset the decline in bottled white (21 ML) by a factor of three. Bulk exports also drove the red increase, with the increase in bulk red (56 ML) offsetting a decline in bottled red (32 ML) by a factor of 1.8.

Bottled red still dominated the export mix however with a 38% share in 2009 (291 ML). Bottled white (152 ML) and bulk red (151 ML) followed each with a 20% share, just ahead of bulk white with 19% (143 ML) (Table 17).

Three companies, Constellation Wines Australia, Foster's Group and Casella Wines account for an estimated 70% of all exports by volume (Table 18). Constellation Wines Australia has now surpassed Foster's as the leading wine exporter of branded wine. Casella Wines is also continuing to grow export volumes. Foster's Group remains on the top of the list of largest exporters by value while Casella has moved up to second place for the first time (Table 19). The Tahbilk Group which now includes exports for McPhersons Wines enters the list of largest exporters by volume for the first time.