Wine Australia report suggests tough times for the wine industry


Australian wine 2021 Wine Production, Sales and Inventory Report shows a record vintage, lower sales volume and higher inventory levels compared to 2019-2020.

According to the report, the tonnage of crushed grapes and liters of wine produced increased by more than 30%, reaching 2.03 million tons and 1.48 billion liters respectively. Sales were down nine percent in total value, to $ 5.89 billion, and four percent in volume, to 1.17 billion liters.

Peter Bailey, Wine Australia’s head of market analysis, said this was not unexpected, given reduced exports to China, global shipping challenges and the size of the crop.

Bailey said: “Australian wine exports during the year ended June 30, 2021 have been affected by the reduction in wine availability over the past two years, as well as the tariffs imposed on Australian wine to mainland China in November 2020. “

“Within our domestic market, we are seeing a long-term gradual decline in the volume of wine consumption that is in line with that of other mature markets around the world, combined with short-term COVID-related disruptions and a some competition from imported wine. “

Growing and ripening conditions described as “near perfect” in most regions produced the record-breaking vintage of 2021, following the weak vintages of 2019 and 2020. The three-year average is now just above the average over 10-year 1.74 million tonnes, Bailey said. .

The giant harvest of 2021 has helped Australia become the fifth largest wine nation in the world, according to preliminary estimates from the International Organization of Vine and Wine (OIV).

Red wine increased its share by 1% to 854 million liters, or 58% of Australian production. The production of white wine reached 628 million liters.

As a result of this increase in production and decrease in sales, the “national wine stock” stood at 2.1 billion liters as of June 30, 2021, an increase of 24%. This means the inventory-to-sales ratio rose to 1.8, 23% above the 10-year average of 1.46.

Bailey believes the report highlights future logistical issues for Australian wine: “Increased production combined with reduced sales is likely to put pressure on tank capacity at some wineries as they approach. of the 2022 vintage. “

“There is no doubt that this is a particularly difficult time for the Australian wine sector. The report stresses the importance of market diversification as a key to long-term sustainability, while good communication between all players in the supply chain is essential to manage short-term issues.

The full report is available on


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