Value of Australian wine exports growing
The value of Australia’s wine exports is continuing to grow, as high-value exports gain greater traction overseas.
According to the government’s Wine Export Approval Report for March 2014, the average value of wine exports has increased 1 per cent in the last 12 months to $2.59 a litre.
While this might not seem like a huge increase, this number is being driven by growth at the high end of wine production. The average per litre value of bottled wine has increased 6 per cent in the last 12 months to $4.68 a month.
Against this growth in more valuable wine exports, overall wine volumes have been dropping, due to weakening demand at the lower end of the international wine market.
Wine Australia’s Chief Executive, Andreas Clark identified that the weakening of lower value wines is being offset by strong growth in high-end consumption overseas.
“While the decline in the volume of Australian wine exports to many of our major markets is a concern, it is positive to see that the average value of Australian wine exports has increased in many
of our key markets,” said Mr Clark.
“And while overall volumes declined, there were more exporters who recorded a volume increase (769) compared to those that recorded a decline (580).”
“Bottled exports above $5 per litre increased by 1 per cent in volume to 66 million litres valued at $644 million, with the average value of exports in this segment rising to a record $9.57 per litre,” said Mr Clark.
Wine export volumes have also been improving this year, suggesting that 2014 will be a better year for the industry than the last one.
As overseas consumers move towards higher end Australian wines and new protections to deployed to prevent wine fraud overseas, there will likely be positive growth across Australia’s $1.7 billion wine export market.