Wine - Australia & Oceania

The Wine market in Australia & Oceania is experiencing significant growth and development in recent years.

Customer preferences: Customers in Australia & Oceania have shown a growing interest in wine consumption, with an increasing preference for premium and high-quality wines. This shift in consumer preferences can be attributed to several factors, including the rising disposable income levels, changing lifestyles, and a growing appreciation for the taste and sophistication of wines. Additionally, there is a growing trend of wine tourism, where consumers are not only interested in consuming wine but also visiting vineyards and wineries to learn about the production process and experience the wine culture firsthand.

Trends in the market: One of the notable trends in the wine market in Australia & Oceania is the increasing popularity of organic and biodynamic wines. Consumers are becoming more conscious about their health and the environment, leading to a higher demand for wines made from organic grapes and produced using sustainable farming practices. This trend is driven by the growing awareness of the harmful effects of pesticides and chemicals used in conventional wine production. Another trend in the market is the rising popularity of sparkling wines, particularly in Australia. Sparkling wines, such as Prosecco and Champagne, are gaining traction as consumers are seeking more celebratory and festive options for special occasions. The versatility of sparkling wines also makes them suitable for casual gatherings and everyday consumption.

Local special circumstances: Australia, in particular, has a unique wine market due to its diverse climate and geography. The country is known for producing a wide range of wine varieties, including Shiraz, Chardonnay, and Cabernet Sauvignon. The different wine regions in Australia, such as the Barossa Valley and Margaret River, offer distinct terroirs that contribute to the unique characteristics of the wines produced. This diversity in wine production allows consumers to explore a variety of flavors and styles.

Underlying macroeconomic factors: The growing wine market in Australia & Oceania can be attributed to several underlying macroeconomic factors. Firstly, the region has experienced steady economic growth, leading to an increase in disposable income levels. This has allowed consumers to spend more on premium and high-quality wines. Additionally, the region's favorable climate and fertile soil make it conducive for grape cultivation. The abundance of vineyards and wineries in Australia & Oceania has contributed to the growth of the wine industry, providing consumers with a wide range of options to choose from. Furthermore, the region's proximity to Asia has also played a role in the development of the wine market. Australia, in particular, has seen a significant increase in wine exports to Asian countries, such as China. The growing middle class in Asia has developed a taste for Western products, including wine, leading to an increase in demand for Australian wines. In conclusion, the Wine market in Australia & Oceania is experiencing growth and development due to changing customer preferences, including a preference for premium and high-quality wines, the rising popularity of organic and biodynamic wines, and the increasing demand for sparkling wines. The unique local circumstances, such as Australia's diverse wine regions, contribute to the region's wine market. Additionally, underlying macroeconomic factors, such as economic growth, favorable climate, and proximity to Asia, have also played a role in the market's development.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.