Wine - Australia

The Wine market in Australia has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Australian consumers have shown an increasing interest in wine, with a growing preference for premium and boutique wines. This shift in consumer preferences can be attributed to several factors, including a greater emphasis on quality and unique flavor profiles. Additionally, there has been a rise in health-conscious consumers who view wine as a healthier alternative to other alcoholic beverages.

Trends in the market: One of the key trends in the Australian wine market is the growing popularity of organic and biodynamic wines. Consumers are becoming more conscious of the environmental impact of their purchasing decisions and are seeking out wines that are produced using sustainable practices. This trend is also driven by the desire for healthier and more natural products. Another trend in the market is the increasing demand for wine tourism. Australia is known for its picturesque vineyards and wine regions, which attract both domestic and international tourists. Wineries are capitalizing on this trend by offering wine tasting experiences, cellar door sales, and vineyard tours. This not only boosts wine sales but also promotes the local tourism industry.

Local special circumstances: Australia's unique climate and geography contribute to the country's wine production. The vast majority of Australian vineyards are located in cooler regions, such as the Margaret River in Western Australia, the Yarra Valley in Victoria, and the Barossa Valley in South Australia. These regions provide ideal conditions for growing a variety of grape varietals, resulting in a diverse range of wines. Additionally, Australia has a strong wine culture and a long history of winemaking. This heritage has helped establish the country as a reputable wine producer, both domestically and internationally. Australian wines are known for their quality and distinct characteristics, which further contribute to their popularity in the market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the wine market in Australia. The country's strong economy and high disposable income levels have increased consumer spending on luxury goods, including wine. Furthermore, the growing middle class in Australia and other Asian countries has created a larger consumer base for Australian wines. In addition, Australia's export market has expanded significantly in recent years, with a focus on key markets such as China, the United States, and the United Kingdom. This growth in exports has been supported by trade agreements and increased marketing efforts by Australian wine producers. Overall, the Wine market in Australia is experiencing growth due to changing customer preferences, the emergence of new trends, local special circumstances, and favorable macroeconomic factors. With its reputation for quality wines and unique flavor profiles, Australia is well-positioned to continue its growth in the global wine market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.