Industry Analysis & Industry Trends
The Wine Production industry has had an uneven performance over the past five years. Industry revenue declined over the two years through 2013-14 due to an oversupply of wine, the strong Australian dollar and fierce competition in export markets. However, depreciations in the Australian dollar after 2012-13; free trade agreements with South Korea, Japan and China; and weak harvests in Chile and Argentina are expected to lead to significant industry growth over the three years through 2016-17.
Industry operators have experienced a vicious cycle of oversupply over much of the past five-year period. Falling prices have not resulted in reduced production, and in many cases have led to the opposite effect... purchase to read more
Industry Report - Industry Investment Chapter
The Wine Production industry exhibits a high level of capital intensity. IBISWorld uses wage costs and depreciation costs from the Cost Structure Benchmarks section to represent labour and capital investment respectively. For every dollar paid on labour, the average wine producer spends an estimated $0.59 on capital investments. The level of vertical integration, particularly upstream integration, affects capital intensity. Ownership of vineyards and winemaking facilities can increase capital intensity due to some winemaker's reliance on bulk wine production. Bulk wine producers tend to have a higher level of capital intensity, due to investment in winemaking machinery and lower staff requirements in packing and selling... purchase to read more