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 soaring 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 and squeezed margins. The booming popularity 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 - Industry SWOT Analysis Chapter
The industry is expected to be in the mature phase of its life cycle. Industry value added, a measure of the industry's contribution to the economy, is forecast to increase at an annualised 2.5% over the 10 years through 2019-20. In comparison, GDP is forecast to increase an annualised 2.7% over the same period. The industry's lower growth over the period is largely attributable to its ongoing recovery from weakened export demand and an oversupply of grapes.
With many wineries reporting losses in the five years through 2014-15, evidence suggests that small and medium-size industry players have struggled to control costs sufficiently to remain competitive. This has had a negative effect on industry value added... purchase to read more