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 lost bargaining power to retailers. Additionally, an oversupply of wine grapes, and the resulting oversupply of wine, has pushed prices downwards.
The industry has experienced a vicious cycle of oversupply over the past five years. Falling prices have not been met with a reduction in production; in fact they have often led to the exact opposite. Industry enterprises have been reluctant to exit even as many have become unprofitable... 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 2.6% over the 10 years through 2020-21. This is in line with the Australian economy, with GDP forecast to grow at an annualised 2.6% over the same period. The industry's slow growth over the period is largely attributable to its ongoing recovery from weakened export demand and an oversupply of wine.
With many wineries reporting losses over the past five years, evidence suggests that small and medium-size industry players have struggled to control costs sufficiently to remain competitive... purchase to read more