Wine market in Australia

The structure of domestic wine consumption in Australia significantly differs from the country’s export image. While around 40% of Australian wine placements both in the US and the UK correspond to a varietally named Shiraz, in Australia it is only 20% of domestic wines in restaurant placements. The overall proportion of varietally labeled wines in the Australian on-premise market is significantly lower than among Australian wines abroad. On the other hand, while Australian Pinot Noirs are not very famous both in the US and the UK (around 3% of placements in both countries), Australians are rightfully fond of their Pinot Noirs (9% of placements among domestically produced wines).

A significant number of Charmat-method sparkling wines made from Glera grapes are sold domestically as Australian Prosecco (8% of all sparkling wine placements and 15% of by-the-glass placements). Australians insist that Prosecco historically was the name of a grape variety, not an appellation. These wines, however, are sold in the domestic market only. Conversely, Tasmanian sparkling wines account for a massive 38% of Australian sparkling wine placements in the US, while in Australia they represent a modest 6% share of domestic sparkling wine placements.

Although 84% by volume of wine sold in Australia is produced domestically^[4], it is 50% of on-premise placements that are Australian wines.

Around 60% of Australian wine production is exported.^[5] As in the US, baby boomers drink significantly more wine than millennials and Gen Z, and people with more affluence tend to drink more wine.^[6] Much like in the US, the industry in Australia faces oversupply, especially among big bold reds and high-volume commercial wines.^[7]

In off-premise, imported wines can compare with domestic wines in volume only in the range AU$15.00-19.99. According to Wine Australia, there is more imported wine sold in this narrow segment than either below or above this range.

Compiled and checked by Ilya Zabolotnov