According to a recent report from the National Australia Bank, Australia’s wine industry is set to benefit from increased demand in key wine export markets.
The NAB’s Agribusiness Rural Commodities Wrap states that France and the US are currently leaders in global wine consumption by volume, and that both countries represent key destinations for Australia’s exports in value terms.
Although recent data has suggested that China’s demand for wine is losing momentum, NAB says that the country’s current low base per capita wine consumption, coupled with rising incomes and a taste for premium Australian drops has provided Aussie wine producers with favourable growth conditions over the medium term.
General manager at NAB Agribusiness, Kahn Horne told the Weekly Times Now these growth opportunities together with a weakening Australian dollar, serves as positive news for wine exports.
“In the past five to six years there’s essentially been a ‘perfect storm’ for the Australian industry — a glut in wine grape production, stiff import and export competition and a high Australian dollar, but there are green shoots emerging,” said Horne.
“Chinese demand is driving growth in the sales of Australian wines at the premium end of the price spectrum, or above $10 a litre…
“China’s per capita consumption of wine is still very low at less than two litres a year, suggesting there are plenty of opportunities for further growth,”
Horne said that NAB Agribusiness will be hosting a study tour next month for Australian wine producers, giving them the opportunity to network and learn more about the Chinese wine market.
“We will visit wineries, experience wine retailing and meet with government, trade and industry leaders, as well as visit the premier trade show for wine in the Asia Pacific, VINEXPO Asia-Pacific in Hong Kong.”