The Australian wine industry has seen total sales outpace production for the second year in a row, according to Wine Australia’s Australian Wine Production, Sales, and Inventory Report 2024.
The report revealed that one billion liters of wine were produced in 2023-24, marking an 8% increase from the previous year. However, this figure remains 16% below the 10-year average of 1.24 billion liters.
White Wine Overtakes Red for the First Time in 12 Years
A significant shift in production trends was noted, with white wine output increasing by 20% and now accounting for 51% of total production, up from 46% last year. Meanwhile, red wine production declined by 2%. This reversal reflects efforts to address the oversupply of red wine that has persisted over the past three years.
“This was another difficult season in many regions, with heavy rainfall, flooding, and frosty nights,” said Peter Bailey, Manager of Market Insights at Wine Australia. “At the same time, growers and wine businesses have made deliberate decisions to limit production in response to economic and market conditions.”
Exports Show Mixed Trends
Australian wine exports totaled 1.8 billion liters, down just 1% from the previous year. Notably, red wine exports grew by 4%, driven by the re-opening of the Chinese market and the easing of tariffs. Exports to China surged from one million liters to 32 million liters in the 2023-24 financial year, now accounting for 5% of total wine exports.
“It will take time to understand how Chinese consumers respond to increased availability of Australian wine,” Bailey cautioned.
Inventory Declines, Sales Align with Production
The stock-to-sale ratio (SSR) for smaller vintages fell by 14%, reflecting a 10% reduction in inventory. While the SSR for white wine dropped below the 10-year average, red wine inventories remained 15% above the historical average.
Bailey highlighted that while production and sales are currently balanced, these levels are significantly below long-term averages.
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