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 been forced to contend 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... 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 will find it more difficult to achieve the scale and 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