New Zealand saw the value of its wine exports fall marginally to NZ$2.10 billion (US$1.216) despite a 5% growth in volume over the last 12 months, on the back of “sluggish” established markets.
The value of its exports fell by less than 1%, the latest report by Wines of New Zealand said, with its key established markets (the UK and Australia and US make up over 70% of the country’s exports) showing sluggish growth. The US, which remains New Zealand’s largest market, saw exports fall 3% in the last year to NZ$762 million – even before the effect of the tariffs imposed in April, and increased in August, could be seen in the export data.
Growth in its second-tier markets was more promising, rising 17% overall, with the strongest growth being seen in emerging export destinations such as China, up 47% to NZ$56 million, and South Korea up 92% to NZ$44 million.
“This reflects strong trade and consumer interest as well as the ability of wineries to develop new markets with improved supply,” the report noted, and in-market sales data “consistently show the New Zealand category outperforming competitors in key markets”
Overall, New Zealand’s wine export market is worth over NZ$2 billion a year and makes up 90% of sales, however this year has seen slow global economy and weak wine markets in key export destinations, resulting in “sluggish exports to established markets, reduced demand for grapes, and lower grape prices”, the report said. This, combined with the increase of tax in the UK and tariffs in the US, has left producers “uncertain about the outlook for our sector”.
Short-term growth prospects remain “subdued”, it said with inventory levels are higher than wineries would like and production costs up “significantly”.
The chair of New Zealand Winegrowers Fabian Yukich noted the positives even while producer navigate through “a complex and uncertain business environment” where market and economic developments were “compounding industry-specific issues to create a highly uncertain environment”.
“A strong reputation and in-market performance ahead of competitors are real positives on which to build for the future,” he said, noting that “much of the current focus of industry activity is on the immediate challenges confronting growers and wineries”.
The report noted that the global trend for lighter, more refreshing wine styles “stands New Zealand’s wineries in good stead”, enabling them “to connect with the next generation of consumers who will drive future international growth opportunities”.
“While much has changed since 2020, the fundamentals that have made New Zealand wine successful over the past three decades have not. Success in the future will reflect this: we must continue to produce highly distinctive, premium and sustainable wines that are an enduring reflection of New Zealand and its people,” Yukich concluded.
Domestic market
Trends in the domestic market – the fourth biggest market for New Zealand’s wines – fared little better, partly due a rise in excise duty, which has increased by 25% over the last four years, as well as reduced wine consumption by Kiwis which “reflects evolving consumer trends, generational shifts, and new buying patterns”.
“These are challenges wineries need to respond to dynamically if wine is to regain favour with New Zealand consumers,” it said, although it noted wine tourism as a “growth opportunity”, with around 27% of tourists visiting a cellar door for tasting.
Grapes left unharvested
This year’s vintage had seen a good crop, which could have “significantly exceeded” any previous vintage in New Zealand’s history – but producers limited their grape intake on the back of the uncertain economic outlook and a “significant” quantity of grapes was left unharvested.
This, along with the warm, dry days and cool nights “bodes very well for the wine quality” of the 2025 harvest, the report noted.
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