People all over the world are increasingly getting a taste for Australian wine. How do we know this? New figures indicate that Australian wine exports, especially in the luxury category, boomed in 2016.
Top destination
Keep in mind that there are key differences between old and new world wine-making countries. The wine production industries in new world countries like Australia are less established, meaning that they’re more open to modernisation and to using technology to improve their techniques. Since the 18th Century, Australia has used innovation to gain a reputation as a top wine-making country.
Australia possesses the perfect climate for wine-making, meaning the product is produced in every Australian state. Various grapes are used to make Australian wines including Shiraz, Cabernet Sauvignon, Merlot, Chardonnay, Sauvignon Blanc and Riesling. Historically, Australia consumes more of its own wine than it exports, but this is changing, new data shows, thanks to the Chinese market.
Chinese interest
According to Reuters, a news agency, new statistics from industry group Wine Australia, the country’s wine exports to China climbed by 40% in 2016. The People’s Republic is now the primary export destination for Australian wines. Increasing Chinese interest boosted Australia’s global wine exports last year, at a rate of 7%, so shipments were valued at US$1.67bn across the last year.
Explaining this trend Greg Corra, the Managing Director of wine exporter Inland Trading, which is based in Canberra, said: “Rather than drinking the super-expensive French wines, they were turning to Australian wines which were more affordable.” We should note, however, that France still dominates China’s wine sector, with a market share that’s around double the size of Australia’s.
Good progress
It’s also important to note that the growth of the fine wine market, supported the expansion of Australia’s wine industry as a whole. It was the fastest growing export segment in 2016. Additionally, Australian wine shipments to both the US and the UK, both key markets for the land down under, increased during this period. However, Australia’s wine exports to Hong Kong dropped by 16%.
The Hong Kong share of the market declined, because many exporters are now re-routing stock to the Chinese mainland. China used to charge 20% tariffs on wine imports, but this have now declined to below 90%. The People’s Republic recently enacted another tariff reduction, which according to wine experts could allow the country’s wine shipments to China climb by an additional 20% in 2017.
Sample fine wines
It is clear, therefore, that fine Australian wines are becoming more popular worldwide, especially in China, which itself is rapidly developing a thirst for our favourite tipple. If you want to see why consumers favour luxury Australian vintages, we can help you out. You can buy Penfolds Grange wine, one of the country’s most beloved luxury brands, from Ideal Wine Company online right now!
