Exceptional growth in demand for Australian fine wine saw the total value of Australian wine exports grow by 3 per cent to $2.91 billion in the 12 months to December 2019.
Exports of higher valued wines – those above $10 per litre free on board (FOB) – reached a record value of $1.1 billion.
Wine Australia Chief Executive Officer Andreas Clark said that the sector had focused on growing exports at higher price points and the results reflected the success of the sector's strategy.
'Australian wine companies have been very active in our export markets and the value of exports has now increased for six consecutive years', he said.
The total value of exports in 2019 was the second highest for a calendar year (see Figure 1) and value is approaching levels from before the Global Financial Crisis.
The average value of exported wine increased by 18 per cent to $3.91 per litre FOB, the highest level since 2006.
'The volume of exports was down, with the decline heavily weighted towards lower price segments. The lower vintages in 2018 and 2019, together with lower inventory levels, meant that there was less wine available for export in 2019', Mr Clark said.
'Looking ahead into 2020, we anticipate that coronavirus will have an impact on sales, particularly to China, but at this stage it is difficult to predict the degree of that impact. Also, our first concern is people's well-being in China and elsewhere and there will be time down the track to consider other impacts', he said.
Figure 1: Value and volume of Australian wine exports over time
