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 Analysis Chapter
The Wine Production industry has faced challenging conditions over the past decade. Industry revenue has been negatively influenced by a major oversupply of wine, a shift in consumer preferences towards cheaper wine and a collapse in demand from key export markets. Although global markets have improved over the past two years, low export sales to key UK and US markets continue to present a challenge for the industry. Industry revenue is projected to grow by an annualised 0.2% over the five years through 2015-16, to total $5.3 billion. This includes forecast growth of 2.0% over 2015-16, on the back of a similar increase in export earnings.
The winemaking industry has faced a consistent structural oversupply over the past five years... purchase to read more