Although Australia’s per capita alcohol consumption is decreasing, cider sales are expected to grow 21.5 percent for the five years through 2019-20.
According to IBISWorld, Australians will spend $1 billion on cider this financial year.
Sales of cider have grown at an annualised 33.9 percent over the past five years, with continued strong annualised growth of 21.5 percent forecast for the five years through 2019-20.
IBISWorld Australia general manager Daniel Ruthven, said cider’s popularity is coming at the expense of ready-to-drink beverages such as pre-mixed vodka or whiskey drinks.
The trend away from strictly apple-based varieties of cider is attracting new drinkers, and is also leading to a rise in the number of specialty ciders available on tap.
“While many consumers have switched to craft and imported beers, others have changed to wine and cider,” Ruthven said. “Cider producers have found great success in marketing the beverage as a refreshing alternative to beer. Additionally, ciders have benefited from increased taxes on ready-to-drink mixes, with many young partygoers now opting for cider as a cost-saving exercise.”
As Australians embrace the trend of premium alcoholic beverages, imported and speciality ciders are enjoying particular success.
“Beer consumption is falling, but revenue is increasing as consumers opt for imported and craft varieties,” said Mr Ruthven. “This willingness to pay a premium for quality and variety is also driving revenue in the cider market.”
Over the past five years, cider imports have grown from 25.8 percent to 27.0 percent of domestic demand. The increasing popularity of premium foreign ciders – such as Swedish favourites Rekorderlig and Kopparberg, and the New Zealand-based Monteith’s – has driven this significant import penetration.
On the import stage, New Zealand holds 30.3 percent of the market, just above Sweden (29.4 percent). Ireland is another significant source of imports, with a 23.0 percent share of the market for foreign cider. Swedish giant Rekorderlig has invested heavily in product innovation to rapidly expand its range of flavoured ciders. This has helped the company quickly boost its market share in Australia, and has led Sweden to overtake previously significant sources of imports like the United Kingdom.
On the export front, the leading target market is the United Kingdom (24.4 percent of the export market), followed by New Zealand (19.8 percent) and the United States (16.3 percent).