Australian wine exports are down 10% in worth and one percent in volume for the year ending June 2023 according to Wine Australia’s Export report.
Exports declined by 10% in worth to $1.87 billion and 1 percent in volume to 621 million litres, as per the figures.
The US market “is experiencing structural decline in lower price segments, which is where Australian wine is predominantly sold” said Wine Australia.
Peter Bailey, Manager of Market Insights at Wine Australia, expressed that the greater part of the decrease in Australia’s export occurred in shipments with a typical worth between $2.50 to $4.99 per litre free on board (FOB), which are by, and large wines sent out in their last packaging and sold in lower priced retail portions.
“Wine consumption in mature markets is in decline, driven by decreases in the commercial price segments. This is impacting Australia’s export performance, especially in the US, as Australia is very exposed to the price segments in decline,” said Bailey.
These figures reflect worldwide trends, with drinks analysts IWSR announcing worldwide wine consumption had diminished by three percent in 2022, aside from premium wines, which kept on enjoying modest growth.
“According to IWSR, the value of global premium wine sales grew by 2 per cent in 2022, a lower growth rate compared to recent years due to economic and inflationary pressures. Globally, consumers are cutting back on alcohol spending as prices rise for food and other necessities but are choosing to drink less often rather than trade down price segments,” said Bailey.
Australian wine was exported to 117 worldwide destinations during the year and five more in 2022. Growth in the worth of exports was seen in 66 of these during the year, while 51 declined.