Wining and dining: Australian producers are courting Chinese consumers, boosting export revenue

The Wine Production industry has benefited from growing global demand for Australian wine and improved pricing over the past five years. While the industry has faced mixed trading conditions, export growth, due to the depreciation of the Australian dollar and the implementation of free trade agreements with South Korea, Japan and China, has benefited industry operators over the period. Industry operators have also benefited from greater demand from liquor retailers and pubs, bars and nightclubs. As a result, industry revenue is expected to grow at an annualised 1.8% over the five years through 2017-18, to $6.0 billion.The industry has been recovering from a global oversupply of wine for much of the past five-year period...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
1.8%
Forecast Growth 18-23
Profit
Employment
16,774
Businesses
1,894

Industry Threats & Opportunities

  • Price increases and export growth have driven industry performance over the past five years
  • Wine exports have risen due to growing demand for industry products in Asian markets
  • Export growth is expected to drive the industry’s performance over the next five years
  • Industry Report - Industry Products Chapter

    Industry players produce red wine, white wine, sparkling wine, cider and other alcoholic beverages. Each product has been segmented based on its contribution to total industry revenue. Red, white and sparkling wines account for most industry production, making up an estimated 92.1% of industry revenue in 2017-18. Cider and other alcoholic beverages make up the remainder.Red wineRed wine represents the largest share of industry revenue. Producers of red wine have benefited from growth in export demand and the trend towards premiumisation, with red wine making up the largest portion of industry exports. How...purchase to read more.

    Additional Insights for the Wine Production Industry

    IBISWorld has determined the most important Key Success Factors for the Wine Production are:

  • Production of goods currently favoured by the market
  • Supply contracts in place for key inputs
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as Per capita alcohol consumption and Total alcohol consumption in the Wine Production industry impact industry performance..

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    What's in this report

    What is the Wine Production Industry?

    The industry purchases grapes and other key ingredients to process into wine, port and wine-based alcoholic beverages. These products are packaged in bottles or casks and sold to wine merchants and retail outlets. The industry also includes the production of other alcoholic beverages not categorised elsewhere, such as cider.

    Industry Products
  • Red wine
  • White wine
  • Cider
  • Other alcoholic beverages
  • Sparkling wine
  • Industry Activities
  • Red wine production
  • White wine production
  • Sparkling wine production
  • Fortified wine production
  • Cider production
  • Sherry production
  • Perry production
  • Mead production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita alcohol consumption
  • Total alcohol consumption
  • Demand from liquor retailing
  • Demand from pubs, bars and nightclubs
  • Trade-weighted index
  • Domestic price of wine grapes

  • Current Performance
  • Premiumisation
  • Wine glut
  • Global markets
  • Supermarket power
  • Other alcoholic beverages
  • Chart: Revenue Growth

  • Industry Outlook
  • The global landscape
  • Oversupply issues
  • Improving profitability
  • Table: Wine Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wine Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Liquor Wholesaling
  • Liquor Retailing
  • Pubs, Bars and Nightclubs
  • Casinos
  • Hotels and Resorts

  • Key Selling Industries
  • Flour and Grain Mill Product Manufacturing
  • Fruit and Vegetable Processing
  • Glass and Glass Product Manufacturing
  • Grape Growing
  • Paperboard Container Manufacturing

  • Products & Services
  • Red wine
  • White wine
  • Sparkling wine
  • Cider
  • Other alcoholic beverages
  • Chart: Wine Production Industry Products and Services Segmentation

  • Demand Determinants
  • Discretionary income and consumer sentiment
  • Prices and exchange rates
  • Consumer trends
  • Health consciousness and consumption

  • Major Markets
  • Export markets
  • Major retailers
  • Domestic wholesalers
  • Other markets
  • Chart: Major Market Segmentation for the Wine Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Wine Production

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wine Production Industry

  • Industry Globalization
    Treasury Wine Estates Limited, Accolade Wines Holdings Australia Pty Limited, Pernod Ricard Pacific Holding Pty Ltd, Casella Wines Pty Limited,
  • Table: Treasury Wine Estates Limited - financial performance
  • Table: Accolade Wines Holdings Australia Pty Limited - financial performance
  • Table: Pernod Ricard Pacific Holding Pty Ltd - financial performance
  • Table: Casella Wines Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wine Production 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 Wine Production Industry
    Includes:
  • 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
    Bulk Wine
  • Bulk wine is wine sold in containers with a volume greater than 25 litres. This wine typically tends to be cheaper and of lower quality.
  • Cellar-Door Sales
  • Direct-to-public sales made by wineries.
  • New World
  • Wine producers outside the traditional wine regions of Europe and the Middle East (e.g. from Australia, New Zealand, Chile, Argentina and South Africa).
  • Perry
  • An alcoholic beverage made by fermenting pears.
  • Premiumisation
  • The shift in consumer preference towards more expensive premium wines.
  • Wineries
  • Independent, vertically integrated wine producers that grow grapes and produce wine in a small, localised area.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wine Production 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:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wine Production:
    • 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 Wine Production 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 Wine Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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