Emerging markets in Southeast Asia showed strong growth for Australian wine exports in the past 12 months ended in March but were unable to offset declining value to traditional markets, according to Wine Australia’s latest Export Report.
Australian wine exports overall declined by 7% in value to AU$1.90 billion and 1% in volume to 620 million litres (69 million 9-litre case equivalents) in the year to 31 March 2023. This is 18% below the 10-year average value of AU$2.30 billion and 16% below the 10-year average volume of 736 million litres.
Wine Australia Manager, Market Insights Peter Bailey said the year-on-year decline in value was largely driven by a decrease in exports to the UK.
“A positive in the report is that Australia’s diversification into emerging markets is starting to bear fruit, which is beneficial for longer-term stability and growth. Southeast Asia grew strongly at both the commercial and premium ends of the price spectrum, and to key emerging markets including Thailand, Malaysia, Indonesia, Vietnam and Philippines,” said Bailey.
“Australian exporters shipped wine to more individual destinations around the world. But it is also pleasing to see that the regional share of export value has remained even; with around a one-third share of Australia’s export value going each to Asia, North America and Europe,” he added.
In the year to the end of March 2023, Australia shipped wine to 118 destinations – up from 112 in the same period in 2022. The strongest region for growth in Australian wine exports was to Southeast Asia, up 9% to AU$301 million. Offsetting this growth was a decline in exports to North America, down 5% to AU$557 million, and to Europe, down 17% to AU$568 million. European markets are experiencing tough operating conditions resulting from economic challenges and conflict in the region. Northeast Asia incuding China also declined, down 5% to AU$318 million.
The top five export destinations by value were:
- US (down 8% to AU$381 million. 20% value share of total export value)
- UK (down 20% to AU$359 million. 19% share of total export value)
- Hong Kong (down 1% to AU$182 million. 10% share of total export value)
- Canada (up 2% to AU$174 million. 9% share of total export value), and
- Singapore (down 20% to AU$134 million. 7% share of total export value).