Industry Analysis & Industry Trends
Difficult trading conditions have plagued the Wine Production industry over the past five years. Volatile economies in key export markets, a soaring Australian dollar for much of the period and rising competition from overseas low-cost wine producers have hurt wine exports. In the domestic market, producers have lost bargaining power to the supermarket giants and been forced to contend with changing consumer preferences. Additionally, an oversupply of wine grapes, and the resulting oversupply of wine, has pushed prices downwards, squeezing margins and forcing many producers out of business. The emergence of ciders has helped to offset falling international demand for Australian wines, with savvy marketing driving substantial growth in demand for cider... purchase to read more
Industry Report - Starting a New Business Chapter
Historical increases in both enterprise and establishment numbers according to wine demand suggest low to medium barriers to entry. However, the level of market saturation already achieve by the industry's largest players, mid-tier firms and small independent wineries make successful entry by new players difficult. New entrants will find it more difficult to achieve the scale and distribution networks necessary to compete against the industry's largest players.
Capital requirements are significant, although operation on a small scale is possible. As some large wine companies divest parts of their operations, these become available for purchase by any potential new entrants... purchase to read more