The rise and rise of Australian wine exports has continued in 2018 with another 10 per cent jump in value to $2.8 billion.
That was achieved with a 5pc volume lift to 850 million litres for the year to December 31.
The biggest percentage increase in export sales categories came with a near doubling in the popularity of premium wines priced at between $100 and $200 a litre, and in the more mainstream price range of $20-$30/litre – up 65pc.
Also significant was a 16.3pc jump in the popularity of wine worth $10-$20/litre.
China jitters
However, economic and trade tensions involving China may have begun to hit home back in Australian vineyards, as sales growth to our biggest wine market slowed dramatically last year.
Although Chinese imports of Australian wine still rose 18pc to be worth $818m, exports were significantly less bullish than the 63pc surge recorded the previous year.
This demand also translated into growth in almost all price segments.
- Andreas Clark, Wine Australia
Industry observers say middle class Chinese, who have swiftly become a strong market for Australian wine, are cutting spending as average household buying power slips in response to slower economic growth in China thanks to a range of factors, including its US trade stalemate.
Sales to our second biggest market, North America, ended the year flatlining in value at $636m, having been in decline for much of the previous 12 months.
Wine Australia said a slowing in China’s rampant wine demand was expected to some degree, however there was generally still solid demand for exports.
“This demand also translated into growth in almost all price segments,” said Wine Australia chief executive officer, Andreas Clark.
The average value of bottled wine exports grew 10pc to a record $6.20/ litre (freight on board), and bulk wine was up 14pc to $1.17/l.
“These figures demonstrate strong international demand and they highlight how Australian wine exporters have worked diligently to develop and maintain international markets,” Mr Clark said.
Australia’s best market region, North East Asia, which includes China, grew 19pc to $1.23b
Europe grew 7pc to be worth $615m, South East was up 3pc to $171m, Oceania up 12pc to $105 million, and the Middle East 36pc to $33m.
The total value of bottled wine shipments grew 7pc cent in value to $2.24b, although fell in volume by 3pc to 361m litres or 40m nine-litre cases.
Unpackaged wine experienced outstanding growth, reaching record levels in value and volume – up 12pc to 480m litres and 27pc in value to $560m.
Another record was the value of exports above $10/l, growing 22pc to $895m.
The value of exports above $10/l now surpasses the value of exports in the discount $2.50–$5/l segment, which is historically the largest for exports.
Red wine continues to be the most popular wine style exported from Australia, and value increased by 12 per cent to $2.14 billion in the year ended December 2018.