Sip sip hooray: Popularity of New Zealand wines in export markets has boosted revenue

The Wine Production industry has grown significantly over the past five years. The popularity of premium New Zealand wine has boosted demand from export markets, supporting the industry’s performance. Industry revenue is expected to rise at an annualised 3.4% over the five years through 2018-19, to $2.6 billion. This rise includes projected revenue growth of 1.1% in 2018-19. Exports are estimated to account for almost 70% of industry revenue in 2018-19, with major export destinations including the United States, the United Kingdom, Australia and Canada. Demand for high-quality wine in these countries, particularly New Zealand’s sauvignon blanc, has helped drive export growth over the five-year period...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
3.4%
Forecast Growth 19-24
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Profit
x.x%lock
Employment
4,823
Businesses
412
Market Share of Companies

Industry Threats & Opportunities

  • The popularity of premium, high-quality New Zealand wine has driven demand from global markets
  • Profit margins have fallen as the domestic price of wine grapes has increased
  • Exports are expected to remain an important market for winemakers, increasing as a share of revenue

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    Industry Report - Industry Investment Chapter

    The Wine Production industry exhibits a high level of capital intensity. For every dollar spent on capital costs in 2018-19, an estimated $2.35 will be spent on wages. Employees are required to operate machinery and undertake vineyard maintenance. Large wine producers typically have more staff. However, smaller boutique firms are often owner-operated, or have minimal employees.As a capital-intensive industry, firms require equipment and machinery to produce wine. Industry players that are highly vertically integrated typically have higher capital costs. In particular, bulk wine producers typically have higher capital intensity and employ fewer staff...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 Demand from liquor retailing in the Wine Production industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Wine Production in New Zealand Industry?

    Industry operators primarily produce wine, port and wine-based alcoholic beverages. They then package these products in bottles or casks, and sell them to wine wholesalers and liquor retail outlets. The production of other alcoholic beverages not elsewhere classified, such as cider, is also included in the industry.

    Industry Products
  • White wines
  • Red wines
  • Ciders
  • Other alcoholic beverages
    • Industry Activities
  • Wine production
  • Sparkling wine production
  • Fortified and unfortified wine production
  • Cider production
  • Perry production
  • Sherry production
  • Mead production
  • Wine-based fruit drink production
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Per capita alcohol consumption
  • Demand from liquor retailing
  • Demand from pubs, bars and nightclubs
  • Trade-weighted index
  • Domestic price of wine grapes

    • Current Performance
  • Export growth
  • Domestic demand
  • Profit
  • Geographical indications
  • Innovation

    and research

  • Industry participation
  • Chart: Revenue Growth

    • Industry Outlook
  • International trade
  • Research and development
  • Domestic demand
  • Policy changes
  • Industry participation
  • Profit
  • Table: Wine Production Industry Revenue Outlook

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

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Liquor Retailing in New Zealand
  • Pubs, Bars and Nightclubs in New Zealand
  • Liquor and Tobacco Product Wholesaling in New Zealand

    • Key Selling Industries
  • Fruit and Vegetable Processing in New Zealand
  • Grape Growing in New Zealand

    • Products & Services
  • White wines
  • Red wines
  • Ciders
  • Other alcoholic beverages
  • Chart: Wine Production Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Exports
  • Wholesalers
  • Retailers
  • Other markets
  • Chart: Major Market Segmentation for the Wine Production Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Wine Production

    • Basis of Competition
  • Internal
  • External

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

    • Industry Globalization

    Major Companies

    Delegat Group Limited, Nobilo Holdings, Pernod Ricard Winemakers New Zealand Limited, Treasury Wine Estates (Matua) Limited,
  • Table: Delegat Group Limited - financial performance
  • Table: Nobilo Holdings - financial performance
  • Table: Pernod Ricard Winemakers New Zealand Limited - financial performance
  • Table: Treasury Wine Estates (Matua) Limited - financial performance

    • Operating Conditions

    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

    Key Statistics

    Table: Industry Data for the Wine Production Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    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.
    • Perry
  • An alcoholic beverage made using fermented pears.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Wine Production in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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