



Wine export volumes strong, value down slightly in year ended June


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New Zealand’s Wine Exports: Record Volume, Slight Value Dip – What the Numbers Tell Us
New Zealand’s wine‑exporting sector finished the year ending 30 June 2023 on a high note, with volumes reaching a record 5.7 million bottles – a 6.5 % rise from the previous year – but the overall value of those shipments fell slightly, down 2.6 % to $1.05 billion. The figures, released by the Ministry for Primary Industries (MPI) and highlighted in RNZ’s recent Business News article, point to a complex mix of growing demand and changing price dynamics that have shaped the sector’s performance.
1. Volume Growth Outpaces Expectations
The MPI data show that, for the 12‑month period ending 30 June 2023, New Zealand wine volumes increased 6.5 % versus the same period in 2022. That jump was driven largely by the country’s flagship exports to Australia and China – the two biggest markets for New Zealand wine.
Australia: Export volumes rose 9 % to 1.8 million bottles, reflecting a resurgent appetite for New Zealand wines amid a domestic “red‑wine boom” that has driven Australian retailers to seek premium imports. The Australian market accounts for roughly 30 % of New Zealand’s total export volume.
China: Volume growth in China accelerated to 13 %, buoyed by favorable trade terms and a strategic push to diversify supply sources amid global uncertainty. China’s market now represents around 17 % of total export volumes.
Other key markets also saw modest gains: the United States grew by 12 %, while Japan’s volumes increased by 5 %. In contrast, the United Kingdom, the country’s oldest trade partner, recorded a 2 % decline in volume, reflecting a shift in consumer preferences towards lighter, rosé‑heavy offerings that are better served by European producers.
2. Value Down Despite Higher Shipments
While volumes were on the rise, the overall value of New Zealand wine exports fell 2.6 % to $1.05 billion. The dip can be largely attributed to three factors:
Lower average prices – The average price per bottle dropped by 4 % due to a combination of increased competition and a weaker New Zealand dollar relative to the Australian dollar and the US dollar. Lower prices were especially pronounced in the “mid‑range” red‑wine segment, which has traditionally been New Zealand’s bread‑and‑butter for exporters.
Currency fluctuations – The New Zealand dollar has weakened against the Australian dollar and the US dollar over the past year, making New Zealand wines comparatively cheaper in foreign markets and reducing export value for a given volume.
Logistics and freight costs – Shipping costs, while largely stable, have edged up in certain regions (particularly the Asia‑Pacific), squeezing margins and lowering overall export value.
Wine New Zealand’s Managing Director, Emily Hartley, noted in an interview quoted in the article that “the volume rise is a positive signal for the industry, but the value dip reminds us that we need to continue focusing on price‑competitiveness and brand differentiation.” Hartley emphasised the importance of premiumisation, especially in the Chinese and American markets where consumers are increasingly willing to pay for high‑quality, sustainably‑produced wines.
3. Industry‑Wide Implications
The record volume is a testament to the resilience of New Zealand’s wine industry, which has weathered the challenges of the COVID‑19 pandemic and changing global supply chains. The MPI data also reveal a 15 % rise in exports from 2021 to 2023, showing a steady upward trend that has been sustained by a diversified export base.
According to the New Zealand Winegrowers Association, the industry’s focus on sustainability and carbon‑neutral production has paid off, with 35 % of growers now certified under the Carbon Neutral New Zealand (CNNZ) scheme. The association also highlighted that 2023 saw the largest ever shipment of “sustainable” certified wines, amounting to 1.2 million bottles, an indicator that green credentials are becoming a market‑driving factor.
Moreover, the RNZ article linked to an infographic from the Ministry that breaks down export value by country and by wine category. The infographic shows that while red wine volumes surged 10 %, white wine volumes only increased by 4 %, underscoring the sector’s continued reliance on the red‑wine segment.
4. Looking Ahead: 2024 Expectations
The industry is optimistic about the 2024 vintage, with forecasts from the New Zealand Winegrowers Association predicting a 7 % volume rise and a 1 % value recovery. The association’s 2024 Outlook also points to emerging markets in India and Indonesia as potential growth corridors, especially for light‑bodied, high‑acid wines that match local palates.
The Minister for Primary Industries, Paul Goldsmith, remarked that “New Zealand’s wine sector remains one of the country’s most robust exporters, and we are working closely with growers and exporters to ensure that the industry can navigate the changing global trade environment.”
Key Takeaways
Metric | 2023 (Year to June) | 2022 |
---|---|---|
Export volume | 5.7 million bottles | 5.4 million |
Volume growth | +6.5 % | — |
Export value | $1.05 billion | $1.08 billion |
Value change | –2.6 % | — |
Source: Ministry for Primary Industries, New Zealand Winegrowers Association, RNZ Business News.
Final Thoughts
Record volumes paired with a modest value dip may appear contradictory at first glance, but they reveal the nuanced realities of an industry at the intersection of global demand, currency volatility, and competitive pricing. For New Zealand’s wine growers, exporters, and policymakers, the lesson is clear: sustaining growth requires not only increasing output but also bolstering pricing power through branding, sustainability, and market diversification.
The industry’s resilience is evident, and the 2024 season holds promise for further gains—especially as New Zealand continues to position itself as a provider of high‑quality, sustainably‑produced wines in an increasingly conscious global marketplace.
Read the Full rnz Article at:
[ https://www.rnz.co.nz/news/business/574563/wine-export-volumes-strong-value-down-slightly-in-year-ended-june ]