Industry Analysis & Industry Trends
Difficult trading conditions have plagued the Wine Production industry over the past five years. Volatile demand from key export markets, a high Australian dollar for much of the period, and rising competition from low-cost overseas wine producers have all hurt wine exports. In the domestic market, producers have contended with changing consumer preferences and have lost bargaining power to retailers. Additionally, an oversupply of wine grapes – and the resulting oversupply of wine – has pushed prices downwards.
Wine producers use grapes and other inputs to craft a range of alcoholic beverages. Many producers, including the industry's largest players and smaller independent wineries, are vertically integrated and grow the grapes they use for wine production... purchase to read more
Industry Report - Industry Key Buyers Chapter
The four largest Australian wine producers collectively account for an estimated 39.6% of industry revenue in 2015-16. This represents a low level of market share concentration. Industry concentration was highest following the acquisition of Southcorp by Foster's Group (now Treasury Wine Estates) during the early 2000s. However, concentration in the industry has changed since then as major producers have purchased and then divested certain production facilities. Larger industry players have been the hardest hit from the oversupply of grapes, and this has discouraged consolidation... purchase to read more