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 Key Buyers Chapter
The four largest Australian wine producers collectively account for an estimated 39.6% of industry revenue in 2015-16. This represents a low level of market share concentration. Industry concentration was highest following the acquisition of Southcorp by Foster's Group (now Treasury Wine Estates) during the early 2000s. However, concentration in the industry has changed since then as major producers have purchased and then divested certain production facilities. Larger industry players have been hard hit by the oversupply of grapes, and this has discouraged consolidation... purchase to read more