Wine Australia has released its latest export figures to December 2017. The report shows that the value of Australian wine exports grew by 15 per cent to $2.56 billion and volume increased by 8 per cent to 811 million litres.
Against the national figures, value growth in Western Australia was 8 per cent and volume growth 1 per cent. Much of this was driven by Margaret River, which saw a 14 per cent value growth, 10 per cent volume growth and an increase of 4 per cent average value per litre.
Growth was also driven by the Great Southern which was 3 per cent up by volume, 6 per cent up by value and 3 per cent up by average value per litre.
The growth in value and average value per litre is good news for WA producers, indicating further premiumisation in the export market, profitability and price stability.
Red wine dominated the WA export sector representing 72 per cent of the market by volume, which was an 11 per cent growth on the previous year. The news was not so good for white wine, which was down 10 per cent by volume. By value, reds were up 16 per cent and whites down 6 per cent.
Value per litre was up for both red and white wine, by 4 and 5 per cent respectively.
Most of the growth for WA was in price points above $7.50, in particular the super premium market which saw a 35 per cent increase in exports valued above $20 per litre. Red wine was almost totally responsible for this increase.
Western Australia’s top markets by both volume and value, in order, are China, United Kingdom, United States, Singapore and Hong Kong.
Exports to China were driven, predictably, by red wine with a 30 per cent volume increase, 38 per cent value increase and a 6 per cent average value per litre increase. Whites increased too by both volume (27 per cent) and value (11 per cent), however saw a drop of 12 per cent in average value per litre.
WA’s second most important market, the United States, saw an increase of 2 per cent in average value, however both whites and reds are down by volume (-15 per cent) and value (-13 per cent).
With the US increasing its premium imports, it continues to be an important target market for WA producers. All growth in US wine consumption was driven by imports which rose 9 per cent in volume and 8 per cent in value in the first nine months of 2017, according to the latest Gomberg-Fredrikson Report.