Wine Production in Australia Industry Market Research Report Now Updated by IBISWorld
The Wine Production in Australia industry has struggled due to difficult trading conditions and a vast oversupply of wine. For this reason, industry research firm IBISWorld has updated its report on the Wine Production industry in Australia.
Melbourne, Australia (PRWEB) July 18, 2013
The Australian Wine Production industry has faced difficult trading conditions over the past five years. Exports have been hurt by volatile economies in key export markets, a soaring Australian dollar (which has made industry exports uncompetitive) and rising competition from new low-cost wine producers. According to IBISWorld industry analyst Ryan Lin, “manufacturers are losing bargaining power against supermarket giants and consumer preferences are changing”. In addition to these factors, a vast oversupply of wine and wine grapes has forced down prices, squeezing margins and forcing many producers out of business. However, the emergence of ciders has slightly helped to offset the falling international demand for Australian wines, with domestic demand fuelled by Australians' love for a cold beverage on a hot summer's day.
Having belatedly come to terms with the chronic oversupply of wine in the market, producers have addressed the problem by writing off assets, closing down wineries and destroying vines. “The industry faces a long and painful process before the market returns to balance,” says Lin. However, conditions are expected to be less challenging in 2013-14, as the return to parity of the Australian dollar helps to offset volatile economic conditions in key export markets. Continual discounting and oversupply of wine will still weigh on domestic revenue. IBISWorld forecasts that industry revenue will decrease at an annualised 1.9% over the five years through 2013-14 to reach $5.7 billion. However, industry revenue is expected to rebound slightly during 2013-14, posting a small growth of 0.7% from the previous year due to recovering economic sentiments and rising consumer confidence.
The Wine Production industry demonstrates a medium level of market share concentration. Concentration in the industry has changed as major producers have purchased and then divested certain production facilities. Significant industry players include Treasury Wine Estates Limited, Premium Wine Brands Pty Ltd, Accolade Wines Holdings Australia Pty Ltd and Casella Wines Pty Ltd. Continual industry growth is forecast for 2014-15, as the strong dollar returns to parity and the sluggish global economy gains momentum. Weak price growth is expected to constrain domestic revenue performance and profitability as industry players look to capitalise on domestic consumption. Winemakers are likely to work on producing single-vineyard wines, while focusing more on cellar-door and online sales.
For more information, visit IBISWorld’s Wine Production report in Australia industry page.
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IBISWorld industry Report Key Topics
The Australian Wine Production industry purchases grapes and other key ingredients, which are processed into wine, port and wine-based alcoholic beverages. These products are packaged in bottles or casks then sold to wine merchants and retail outlets. This industry also includes other alcoholic beverages not categorised elsewhere.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/7/prweb10936310.htm