Australia: UK hit tops export doldrums

Published Apr 27, 2023

Tridge summary

Australian wine exports experienced a decline with a seven percent drop in value and a one percent decrease in volume to $1.90 billion and 620 million liters respectively, according to Wine Australia's latest report. The UK saw a 20 percent decrease in value and 16 percent drop in volume, contributing to the overall decline. Despite this, there was growth in emerging markets in Southeast Asia. The exports were distributed equally among Asia, North America, and Europe, with the US, UK, and Hong Kong being the top three export destinations. However, the industry faces challenges due to economic hardship and increased competition from other beverages, with the biggest decline seen in exports valued between $2.50 to $4.99 per litre FOB.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Australian wine exports declined by seven percent in value to $1.90 billion and one percent in volume to 620 million litres in the year to 31 March 2023. This is 18 percent below the 10-year average value of $2.30 billion and 16 percent below the 10-year average volume of 736 million litres, according to Wine Australia’s latest Export Report. We took the biggest hit in the UK which was down 20 percent in value and 16 percent in volume. Emerging markets in Southeast Asia showed strong growth for Australian wine exports but were unable to offset declining value to traditional markets. Peter Bailey, manager of Market Insights for Wine Australia, said the year-on-year decline in value was largely driven by a decrease in exports to the United Kingdom. “The UK is still experiencing the decline that we’ve previously reported, which is the result of elevated shipments over the past two years due to pre-Brexit demand and Covid-19 induced changes in consumer preferences,” Mr Bailey said. ...

Source: Wbmonline