The Australian wine industry is facing a challenging landscape in the 2023–24 fiscal year, as outlined in the latest production, sales and inventory report from Wine Australia.
Despite some positive trends, the sector is navigating a complex mix of production decreases, shifting consumption patterns and global economic pressures. The 2024 Australian winegrape crush reached 1.43 million tonnes, a 9% increase from the previous year but 18% below the 10-year average of 1.73 million tonnes. This marks the second consecutive year of significantly below-average harvests. Meanwhile, the total wine production rose by 8% to 1.04 billion litres, although this was still the second-lowest total since 2006–07, and falls 16% short of the 10-year average. White wine rises However, white wine production saw a resurgence, growing by 20% to 531 million litres, marking the first time since 2011–12 that white wine production has outpaced red wine. Conversely, red wine production declined by 2% to 511 million litres, significantly below its 10-year average of 671 million litres. Peter Bailey, manager of market insights at Wine Australia, attributed the below-average production to a combination of challenging seasonal factors and economic conditions. “This was another difficult season in many regions, with heavy rainfall and flooding, widespread windy conditions affecting flowering, and dry spring weather leading to cold nights and the potential for frost damage,” Bailey said. “However, the result has also stemmed from deliberate decisions by grape growers and wine businesses to reduce production or intake, driven by the current economic and market conditions
This Article was originally published on The Drink Business - Wine
