Wine Australia\u2019s general manager of market development, Paul Turale, said the ongoing challenges affecting global demand for wine had not abated.<\/p>\n
\u201cThe global wine sector is being reshaped by lower consumption, tighter regulation, climate volatility, trade uncertainty and changing consumer occasions,\u201d he said in the report.<\/p>\n
\u201cThe impact is felt through the entire supply chain, and the effects cannot be underestimated.<\/p>\n
\u201cThe data suggests that the global wine market is not facing a short downturn; it is facing a new demand environment.\u201d<\/p>\n
New Zealand wine \u2018resilient\u2019<\/p>\n
Looking across the Tasman Sea to new wine export data from New Zealand, volumes increased over the same period to more than 306 million litres in the year to June, according to data from industry group New Zealand Winegrowers.<\/p>\n
However, they were not earning as much as before, hovering around the $2.1 billion mark in value, rising just 0.5% in that time.<\/p>\n
The average price per litre was $6.88 per litre in the year to June, down from $7.27 the year prior.<\/p>\n
NZ Winegrowers\u2019 general manager of brands, Charlotte Read, said the industry was navigating a period of significant and rapid change globally, such as changing consumer preferences.<\/p>\n
\u201cI won\u2019t sugarcoat it, the global wine industry is under incredible pressure at the moment, and we are going through a period of reset as an industry,\u201d she said.<\/p>\n
\u201cWhile we\u2019re all in the same arena in a softening global market, New Zealand is showing remarkable resilience.\u201d<\/p>\n
She said the industry was working through an \u201cadjustment period\u201d where winemakers were making individual business decisions about their operations.<\/p>\n
This included reassessing their export markets and distributors, working to premiumise and find value in every bottle sold.<\/p>\n
\u201cOur members, being growers, they\u2019re making practical decisions in the vineyard, reviewing the vineyard plans, managing costs carefully to help align their supply to market conditions,\u201d she said.<\/p>\n
\u201cIt\u2019s a really interesting story right now for us of resilience, changing consumer preferences and how we in New Zealand are adapting to that rapidly evolving global environment.\u201d<\/p>\n
While the wine industry in Aotearoa was far from immune to global market challenges Australia was also facing, Read said New Zealand worked hard to maintain its position as a premium producer of sustainable wines.<\/p>\n
\u201cGiven the strong consumer demand out there for New Zealand wine, it does put us in a much stronger position than many wine-producing countries.\u201d<\/p>\n
However, wine production was acutely challenging in areas such as Tair\u0101whiti, where one large wine producer, Indevin, decided in May to cut its supply of grapes. <\/p>\n
There were reports that thousands of grapevines had been uprooted around Gisborne as a result.<\/p>\n
Top markets compared<\/p>\n
The United Kingdom was Australia\u2019s top market for wine export volume, but was at its lowest level in 25 years, with mid-priced wines particularly affected.<\/p>\n
In the year to June, its UK export volumes declined 6% to 192 million litres, and fell 3% in value to $410 million (A$340m).<\/p>\n
However, New Zealand\u2019s exports to the UK increased 16% in volume in that time, with value up 4% to $426m.<\/p>\n
In the key United States market, tariff uncertainties and reduced consumer demand continued to hurt exports, particularly for Australia.<\/p>\n
Australia\u2019s US exports dropped 15% in volume in the year to June, but sank even further, 27% in value to $274m (A$229m).<\/p>\n
The Wine Australia report said overall, the US remained one of the largest contributors to the global decline in its exports.<\/p>\n
But Australia and New Zealand rerouted greater volumes of wine to Canada over that time.<\/p>\n
New Zealand\u2019s US wine exports fell 5% in volume, and value down 7% to $720m.<\/p>\n
To mainland China, Australia recorded a significant drop to its largest market by value, with exports down 15% to $906 million amid a subdued post-tariff recovery since 2024.<\/p>\n
However, declines were offset by good growth in other Asian centres, Singapore, Thailand and Japan, the Wine Australia report said.<\/p>\n
Though from a lower base, China was a standout for New Zealand this year, with volumes soaring 72% and value up 24% on last year to more than $69m.<\/p>\n
Read said 90% of the wine Aotearoa produced was white, which was a growing trend across Asia.<\/p>\n","protected":false},"excerpt":{"rendered":"Wine Australia\u2019s general manager of market development, Paul Turale, said the ongoing challenges affecting global demand for wine…\n","protected":false},"author":2,"featured_media":580286,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[49653,102700,3214,71,1437,28205,111,43,139,69,8603,28206,1754],"class_list":["post-580285","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-zealand","tag-affecting","tag-downunder","tag-exports","tag-from","tag-global","tag-monique","tag-new-zealand","tag-news","tag-newzealand","tag-nz","tag-slump","tag-steele","tag-wine"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/580285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=580285"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/580285\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/580286"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=580285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=580285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=580285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}