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Wine Market Profile Wine Market Profile that are the backbone of the industry4s viability today. This model of growth, which remains uni(ue across Australian agribusiness, established the pla5orm to add value to Australian wine and further expand sales. As the industry grew, it a6racted levels of corporate ownership, which in7ected new in8uences, new capabili#es and in some instances, challenges on the sector. The impact of the evolu#on of the wine industry has resulted in an orienta#on towards applauding region varia#ons and origins. This aligns well with the range of produc#on loca#ons as well as accommoda#ng the elevated consumer awareness of food provenance. Australian produc#on Key facts: In 201221 , Australia produced 1.8 million tonnes of wine grapes, e(uivalent to 1. 4 billion litres of wine. South Australia is the ∗ Australia produced 1.83 million tonnes of wine grapes for largest producer within the domes#c market producing almost half the year ending June 2013. of the total na#onal volume, as seen in Figure 1. ∗ South Australia is the largest producer of wine in Australia with 48% of na#onal produc#on, while Tasmania produced Figure 1 Wine grape producon by state 1.83 MT 0.6% of na#onal wine grape volume. ∗ Tasmania has a uni(ue terrior which produces a range of WA TAS Q,D wines with balanced acidity and fruit characteris#cs typical of 4.3% 0.6% 0.1% cool climate growing regions. ∗ Australian wine exports were 717 million litres for the year )IC ending June 201 , or 54% of the total na#onal produc#on. 17.5% ∗ Australia's five most significant export markets ,by volume- are the .nited Kingdom, .nited States, Canada, 0ermany and China. SA 48.5% Australian wine industry NSW/ The Australian wine industry exploits a wide range of regional ACT loca#ons and clima#c types, with around 2,100 companies 29.0% involved in the industry. Australia has developed a strong export focus with 54% of produc#on in 201221 des#ned for interna#onal markets. Australian wine exports have fallen significantly since their peak in 2003, but exports over the last Figure 2 highlights the top 10 varie#es of wine grape produced, as two years appear to have seen some recovery. a percentage of total produc#on volumes. The top 10 varie#es This growth and ongoing viability of the Australian wine industry account for 89% of the total produc#on volume, while the has been enabled by a blend of across sector alignment and remaining 26 varie#es account for 11%. White varie#es ,in lighter enterprise autonomy. The alignment helped the industry to shading- account for 48% of the total wine grape produc#on, while manage the transi#on from the challenging days of cask sales and red varie#es ,in darker shading- account for 12%. build credibility in new markets. At the same #me, wine enterprises were able to build their products and brands into market advantages and the combina#on delivered export sales Page 1 Wine Market Profile .inot Noir Channel in the south. Despite the spread of produc#on, Tasmania The Pinot Noir grape represents 2% of na#onal wine grape is defined as a single geographic indica#on, which provides produc#on with 41,326 tonnes produced in 201221 . This volume marke#ng and branding advantages to Tasmanian producers. was 24% higher than produc#on volumes in 2011212. This is a This regional spread oIers significant varia#ons in climate and soil characteris#cs, improving the varietal appeal of Tasmania4s cool climate wine that is well suited to the Tasmanian climate. wine outputs. The largest concentra#on of wine growers within Chardonnay Tasmania is found in the Tamar Dalley, where there are The Chardonnay grape has been overtaken by the ShiraA grape, approximately one third of the grower numbers producing an and is now the second largest variety by produc#on siAe, e(uivalent share of the total volume. represen#ng 22% of na#onal wine grape produc#on. In 201221 93,2 9 tonnes were produced, which is 3% higher than the Figure Tasmanian producon by region8 110392t produc#on in 2011212. Huon/ North Derwent Figure 2 Channel West Top 10 1ariees by 1olume )alley 6% 1% 1% Other 11% Coal .inot Noir 2% Ri1er .inot 4ris 5 .inot 4rigio 3% )alley Tamar Colombard 4% 13% )alley Muscat 4ordo 3lanco 4% 40% Semillon 4% Sau1ignon 3lanc 5% Merlot 7% North Cabernet Sau1ignon East 14% East Coast Chardonnay 22% 19% Shira2 24% 20% .ercentage of total grape production 1olume Tasmanian produc#on Interna#onal trade Tasmania is well suited to producing cool climate wines, such Australia is a significant player in the world trade of wine, being as Pinot Noir, Chardonnay and Sparkling. There are currently the fourth largest exporter of wine by volume on the world around 160 companies involved in the Tasmanian wine market. As outlined in Figure 4, Australia exported 717 million industry, with 30 of these companies opera#ng cellar door litres of wine in 2011, 3% lower than the 1 year average ,2008209 businesses. C201221 - of 749 million litres . Tasmania produced 110392 tonnes of wine grapes in 201221 , including 40950 tonnes of the Pinot Noir variety ,accoun#ng for Figure 4 Annual internaonal wine trade 4 % of Tasmania4s total wine grape produc#on-, and 20649 200 tonnes of the Chardonnay variety ,accoun#ng for 2 %-. 100 Combined, these two varie#es account for 66% of the Tasmanian - (100) wine market. Approximately 43% of Tasmanian wine is sold (200) within the state, 41% is sold to mainland Australia and the (300) (400) remaining 8% is exported. A significant amount of Tasmanian (500) wine grapes are exported to the mainland for pressing. (600) (700) There are seven main wine produc#on regions in Tasmania, as (800) (900) outlined in Figure . They are theB northCwest, northCeast, Tamar 2008/09 2009/10 2010/11 2011/12 2012/13 Dalley, East Coast, Derwent Dalley, Coal River Dalley and Huon2 Exports Imports Net Trade Page 2 Wine Market Profile Australia's top five export markets ,by volume- in order were was $2 9 per tonne, compared with the na#onal average of the .nited Kingdom, the .nited States, Canada, 0ermany and $499 per tonne. China. Consump#on Figure 1 Wine exports by type 716 million litres Figure 6 Domesc sales by type 453 million litres Fortified Other SparAling Carbonated Other 0.2% 0.1% Fortified Wine 3% 2.0% Wine 3% 1% SparAling 8% Red White 39% 40.1% Red 57.6% White 46% Figure 1 profiles wine exports in 201221 by type, and In 201221 Australia consumed 453 million litres of wine, the highlights that red wine accounts for around 57.6% of the total e(uivalent of 19.7 litres per person. This level of consump#on volume of Australia wine exports. White wine accounts for is slightly lower than the 1 year average of 20.4 litres per around 40.1% , while sparkling , 2% -, for#fied , 0.2% - and other person. wine accounts for the remainder. Figure 6 profiles the contribu#on of domes#c sales by wine Consump#on of cool climate wine styles at superCpremium type. In volume terms, white wine is the most popular wine ,wine retailing at A$11 C $21 per bo6le- and ultraCpremium consumed accoun#ng for 46% of total domes#c sales, while prices ,wine retailing at above A$21 per bo6le- is growing in red wine accounts for 39% . This is in contrast to the export the established markets of .nited Kingdom, .nited States of contribu#on, where red wine exceeds white wine. The America, Canada, Scandinavia, Hong Kong and Singapore. remainder of the wine consumed domes#cally consists of Sales of Pinot Noir are achieving rapid growth in markets such sparkling wine , 8% -, for#fied wine , 3% -, carbonated wine , 3% - as the .S. Sales of other cool climate wines such as Sparkling and other wine , 1% -. and Pinot 0ris are also trending upwards at superCpremium and ultraCpremium price points. Pricing Tasmanian grapes a6ract a premium price in the market. While Australian producers have faced oversupply issues and a con#nuing decline in return per litre in export markets since 2003, Tasmanian wine has held a return approximately 2.1 #mes the Australian average over this period. In 201 the average purchase price per tonne for Tasmanian wine grapes Page Wine Market Profile Outlook for sector . Freshlogic www.freshlogic.com.au, Ph. N61 9818 1188 • The Australian wine industry en7oys a solid set of capabili#es that includes a variety of brands, a range of 4. Australian Mureau of Agriculture and Resource Economics and product types and wine varie#es, a spread of grower Science ,AMARES- loca#ons and enterprise siAes and credibility in a range of www.daI.gov.au2abares Ph. N612 6232 9 markets. This pla5orm provides a basis to defend and expand market share. 1. Australian Mureau of Sta#s#cs ,AMS- • There is a significant volume and value derived through www.abs.gov.au Ph. N612 9268 4909 sales of niche and specialty wines that complement the 6. Australian Department of Foreign AIairs and Trade ,DFAT- sales of bulk wine. www.dfat.gov.au2 Ph. N612 6261 1111 • Wine traders and consumers form a discerning market. Wine oLen has a link to providence a6ributes, supported 3. Department of Economic Development, Tourism and the Arts by increasing consumer interest in the origins of the O Invest Tasmania product. Tasmania, as an origin for wine, is regarded as a www.inves6asmania.com.au Ph.
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