Wine Australia’s Export Report shows that the value of Australian wine exports continued to experience strong growth in the 12 months to the end of June 2016.
From July 2015 to June 2016, the value of exports grew by 11 per cent, driven by bottled exports, particularly at higher price points.
Bottled exports grew by 15 per cent to $1.7 billion and the average value of bottled exports increased by 9 per cent to $5.35 per litre, the highest since October 2003.
Wine Australia CEO Andreas Clark said, ‘Pleasingly, demand for Australian fine wine has continued to grow, particularly in North America and Asia.
‘Our finest wines contributed to almost half of the total value growth in the last 12 months, with exports priced at $10 FOB and over per litre up 26 percent to a record $499 million.
‘This increased demand for Australia’s finest wines was reflected in all of our top five export markets.
‘Exports priced $10 FOB and over to the United States grew by 16 per cent, mainland China by 71 per cent, the United Kingdom by 15 per cent, Canada by 12 per cent, and Hong Kong by 5 per cent.
‘This growth contributed an additional $102 million to the value of Australia’s wine exports’, he said.
Exports by region
All export regions recorded growth in the last year, except for Europe, which declined by 1 per cent to $574 million (see Figure 1). Northeast Asia continued to lead growth, with value increasing by $158 million (34 per cent) to $618 million. Next in absolute growth was North America, growing by $46 million (8 per cent) to $646 million. Growth slowed to Southeast Asia, up $7 million (5 per cent) to $142 million.
Sustained growth in Northeast Asia
Australian exporters continue to see benefit in export markets with free trade agreements (FTAs).
Exports to mainland China grew by 50 per cent to $419 million, despite a slowing economy. This exceptional growth was aided by the China–Australia Free Trade Agreement, and the growing Chinese middle class’ increased interest in wine.
When combined with Hong Kong ($124 million), China is the largest market for Australian wine exports.
Value to mainland China increased across the price segment spectrum, with the greatest growth once again in exports valued at over $10 per litre, up 71 per cent to $169 million.
Exports to Japan increased by 4 per cent to $45 million, while exports to South Korea were up 29 per cent to $13 million.
Australia’s top five export markets by value
US: up 8 per cent to $449 million.
Mainland China: up by 50 per cent to $419 million.
The UK market continues to be our most significant market in volume terms but, because 80 per cent of wine is shipped in bulk, it ranks third in value and exports were flat at $369 million.
Canada: up 7 per cent to $195 million, and
Hong Kong: up 11 per cent to $124 million.