Sour grapes: Growers turn to export markets following local prices being crushed by oversupply

Despite challenging conditions, the Grape Growing industry has grown slightly over the past five years. Industry revenue is expected to increase at an annualised 0.1% over the five years through 2017-18, to reach $1.2 billion. Wine grapes make up an estimated 67.5% of industry revenue, therefore the industry is highly dependent on the downstream Wine Production industry. A persisting oversupply of wine and wine grapes since the 2000s has been problematic for growers. Rapid expansion by wine producers and wineries created an oversupply of wine, which producers have been forced to sell at low prices over the past five years. Winemakers have been unable or unwilling to effectively reduce supply and this has created an ongoing mismatch between supply and more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising wine export demand provides grape growers with a solution to the persistent local oversupply
  • As with many other agricultural industries, weather conditions dictate annual grape production
  • Wine grape oversupply concerns are expected to ease over the next five years
  • Industry Report - Industry Locations Chapter

    In volume terms, the Grape Growing industry is dominated by the growing of winemaking grapes. These grapes are estimated to account for over 90% of grapes grown in Australia. States that have suitable climatic conditions and strong traditions of winemaking control a disproportionate share of grape production even if revenue might be more evenly split based on the higher prices obtained for table grapes. Grape growing is well established in the temperate areas of South Australia, and in the Murray, VIC, and Murrumbidgee, NSW, irrigation areas. Newer grape growing areas have developed in Tasmania, the Margaret River region in Western Australia and in the cool climates of southern Victoria.South Australia is the largest grape producer, accounting for an estimated 37.7% o...purchase to read more.

    Additional Insights for the Grape Growing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Grape Growing Industry are

  • Economies of scale
  • Appropriate climatic conditions
  • Use of specialist equipment or facilities
  • IBISWorld analysts also discuss how external factors such as Domestic price of wine grapes and Demand from wine production in the Grape Growing industry impact industry performance..

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    What's in this report

    What is the Grape Growing Industry?

    Operators in the Grape Growing industry primarily grow or sun-dry grapes. Grapes are grown for winemaking or to be sold as table grapes. Some of the grapes are dehydrated or dried for sale as sultanas. Grapes harvested by wineries are processed in-house rather than sold to third parties and are therefore excluded from the industry.

    Industry Products
  • Red winemaking grapes
  • White winemaking grapes
  • Table and dried grapes
  • Industry Activities
  • Wine grape growing
  • Sun-drying grapes
  • Table grape growing
  • Vineyard operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of wine grapes
  • Demand from wine production
  • Demand from supermarkets and grocery stores
  • Level of annual rainfall
  • Domestic price of fertiliser

  • Current Performance
  • Growing conditions
  • Wine production
  • Trade influence
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Wine grape supply
  • Dried and table grapes
  • Industry dynamics
  • Table: Grape Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Grape Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fruit and Vegetable Processing
  • Wine Production
  • Fruit and Vegetable Wholesaling
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Industrial and Agricultural Chemical Product Wholesaling
  • Livestock and Other Agricultural Supplies Wholesaling
  • Nursery Production

  • Products & Services
  • Red winemaking grapes
  • Table and dried grapes
  • White winemaking grapes
  • Chart: Grape Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Major wine producers
  • Small and medium-scale wine producers
  • Fruit processors
  • Retailers and wholesalers
  • Chart: Major Market Segmentation for the Grape Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent, utilities and other
  • Chart: Cost Structure Benchmarking – Sector vs Grape Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Grape Growing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Grape Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Grape Growing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Imputed Wages
  • The estimated labour input of the farm owner, their partner or family members, based on hours worked and wages outlined in the Federal Pastoral Industry Award.
  • Viticulture
  • The cultivation of grapes and grape vines; grape growing.
  • Wine Grapes
  • Grapes used in the production of wine rather than for the fresh or dried grape market.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Grape Growing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
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    This report on Grape Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Grape Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Grape Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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