Industry Analysis & Industry Trends
The Wine Production industry has had an uneven performance over the past five years. Industry revenue declined over the two years through 2013-14 due to an oversupply of wine, the strong Australian dollar and fierce competition in export markets. However, depreciations in the Australian dollar after 2012-13; free trade agreements with South Korea, Japan and China; and weak harvests in Chile and Argentina are expected to lead to significant industry growth over the three years through 2016-17.
Industry operators have experienced a vicious cycle of oversupply over much of the past five-year period. Falling prices have not resulted in reduced production, and in many cases have led to the opposite effect... 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 barriers to entry. However, the level of market saturation already achieved by the industry's largest players, mid-tier firms and small independent wineries make successful entry by new players difficult. New entrants can find it difficult to achieve the scale and establish the distribution networks necessary to compete against the industry's largest players. Consequently, barriers to entry are expected to be moderate.
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