Australian wine market to surge by 4.1% CAGR between 2021-2026 as COVID-19 severity abates, says GlobalData
With the severity of COVID-19 dissipating, consumers have started dining out and socialising more often, and we are now witnessing a resurgence in tourism activity. However, pandemic-induced habits will continue to influence the product choices of Australian wine consumers. Against this backdrop, the Australian wine market will grow from AUD9.8 billion ($7.4billion) in 2021 to AUD12.2 billion ($9.1 billion) by 2026, registering a compound annual growth rate (CAGR) of 4.6% over 2021–2026, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Australia Wine—Market Assessment and Forecasts to 2026’ reveals that the market growth will be primarily driven by the fortified wine category, which is set to register the fastest value CAGR of 5.7% over 2021–2026. The category will be followed by still wine with 4.6% CAGR, and sparkling wine with 3.9% CAGR over the forecast period.
Bobby Verghese, Consumer Analyst at GlobalData, comments: “The COVID-19 outbreak accentuated the health and wellness, and experimentation trends among Australian wine drinkers. Health-conscious millennials and Gen Z consumers are drinking less wine or less often to curb their alcohol intake. Wine drinkers are opting for quality over quantity, purchasing premium wines to indulge themselves on special occasions instead of buying cheap wines for everyday drinking. Young consumers are also less loyal to popular labels and are exploring new wine varieties that focus on novelty and personalisation in the recipe or packaging.”
Hypermarkets & supermarkets was the leading distribution channel in the Australian wine market in 2021, followed by food & drinks specialists and e-retailers. Brick-and-mortar retailers are expected to adopt omnichannel strategies to offer shoppers the best of both offline and online retail worlds. Wine producers are also investing in direct-to-consumer channels to tap the booming ecommerce wine market.
The per capita expenditure (PCE) on wine in Australia decreased from $380.1 in 2016 to $351.7 in 2021. Despite this decline, Australia’s PCE on wine surpassed the global average of $65.3, and the regional average of $21.8 in 2021. The PCE of wine will surge to $405.4 by 2026 as more consumers opt to drink less and go for premium wines.
Accolade Wines, Treasury Wine Estates, and Pernod Ricard were the top three companies in the Australian wine market in volume terms in 2021, and Rosemount Estate, Stanley Wines, and Yellowglen were the leading brands.
Verghese concludes: “As the pandemic is brought under control, and economic and social activities normalise, consumer spending on wine will increase. The Australian wine market landscape will evolve as wine producers adapt to the changing consumer choices in the post-pandemic years.”
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With the severity of COVID19 dissipating, consumers have started dining out & socialising more often, & we are now witnessing a resurgence in tourism activity. Pandemic-induced habits continue to influence product choices of #wine consumers. #TheIndianSunhttps://t.co/wd2jQmw3BO
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