In W28 in the wine landscape, the fine wine market is facing a slowdown, due to significant challenges to the global economy. The United States (US), the largest wine market importer in the world, faces the possibility of a recession, while market speculation is leading to increased volatility. Europe is dealing with a turbulent environment, with interest rates at a 20-year high and the UK trying to control inflation. Meanwhile, China is facing faltering consumer confidence and a slowdown in growth. From Jan-Apr-23, EU wine export value decreased by 1% YoY to USD 3.49 billion, and the export volume significantly dropped by 11% to 491,382 metric tons (mt).
According to National Vintage Survey 2023, the 2023 Australian winegrape crush in 2023 was the lowest reported crush since 2000, 24% below the 2022 crush of 1.73 million metric tons (mmt) and 26% below the 10-year average of 1.78 mmt. The decrease in crush was attributed to a third consecutive La Niña event, resulting in the wettest and coldest year for Australia since 2011 and 2012, respectively. Additionally, weather anomalies contributed to lower yields, delayed ripening, and disease management issues. South Australia remained the largest contributor to the crush with 55%, followed by New South Wales at 27%, Victoria at 13%, and Western Australia at 3.5%, while Tasmania and Queensland each accounted for slightly less than 1%. In the first six months of 2023,
Argentina's wine exports declined by 31.7% YoY, with a total of 96.5 million liters. Among these exports, 77.2% were bottled wines, and 22.8% were bulk wines. During this period, the average price of total wine rose by 15.6% to USD 3.5/liter. The reason behind the decrease in exports and the increase in prices was the lowest harvest in the history of Argentina's viticulture, caused by frosts and hail. These weather events led to a scarcity of grapes and significantly raised their prices by over 200% to 300% compared to the 2022 harvest.
Lastly, Chilean bottled wine exports in May significantly dropped by 22.1% YoY in volume and 23.8% YoY in value, with the shipment of 3.9 million boxes worth USD 111.7 million. The average price was USD 28.9/box, which represents a decrease of 2.1% YoY compared to May 2022. Additionally, during the first 5 months of 2023, bottled wine exports fell by 21% YoY in volume and 22% YoY in value, shipping a total of 16.2 million boxes worth USD 469 million, in comparison to Jan-May-22. The drop in exports is attributed to various factors, including lower global economic growth, inflation, war, the energy crisis, and accumulated stock, among others. However, there was a positive note as exports to Brazil increased by 16% in volume and 9% in value compared to the previous year.
