Wine Production in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: January 2024
ANZSIC C1214Revenue
$6.2bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
18,546
Businesses
2,438
Wages
$X.Xbn
Wine Production in Australia industry analysis
Wine producers have faced mixed trading conditions over the past few years. They’ve benefited from growing global demand for Australian wine and premiumisation trends. In recent years, a depreciating Australian dollar and several free trade agreements with countries in the Asia-Pacific region have benefited exports. Nonetheless, slow growth in total alcohol consumption has limited domestic demand. Pandemic restrictions adversely affected the food-service market over the three years through 2021-22. However, the Chinese Government's decision to impose tariffs in excess of 100% on Australian wine has had the greatest effect on the industry. Australia exported over $1.0 billion of wine to China in 2019-20. This fell to below $8.0 million in 2022-23. These tariffs were repealed in April 2024, with export revenue now set to rise over the two years through 2024-25. Overall, revenue is expected to drop at an annualised 8.0% over the five years through 2024-25, to $6.2 billion. This includes an expected decline of 1.4% in 2024-25.
Trends and Insights
- In November 2020, the Chinese Government placed largely prohibitive tariffs on imports of Australian packaged wine. This almost entirely wiped out Australia’s billion-dollar wine trade with China.
- Red wine sales have sharply declined in recent years. China was the largest market for Australian red wine and losing that market has significantly reduced demand.
- South Australia has the largest share of wineries in Australia. The state’s climate and landscape make it suitable for growing a wide variety of grapes.
- Concentration in the industry has risen over the past few years. While the number of wineries in Australia has increased, the largest players have used their size and scale to expand their share of the industry.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 8.0 % over the past five years, to reach an estimated $6.2bn in 2024.
Trends and Insights
Exports to China collapsed under weighty tariffs
- In early November 2020, the Chinese Government directed that no Australian wine was to pass through customs.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The end of Chinese tariffs is set to bolster demand for Australian wine
- Following a deal struck between the Australian and Chinese governments in October 2023, the Chinese Government announced it would review its tariffs on Australian wine. In April 2024, it announced its decision to repeal the tariffs effective immediately.
Biggest companies in the Wine Production in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Treasury Wine Estates | 1,142.3 | |
Pernod Ricard Australia | 558.8 | |
Casella Family Brands | 424.3 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Red wine, White wine and Cider. Red wine is the largest segment of the Wine Production in Australia.
Trends and Insights
Red wine sales suffered under Chinese tariffs
- Major wines included in this segment are shiraz, cabernet sauvignon, merlot, pinot noir and rose.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Beer Manufacturing in Australia
- Spirit Manufacturing in Australia
- Soft Drink Manufacturing in Australia
- Fruit Juice Drink Manufacturing in Australia
Complementors
- Grape Growing in Australia
- Liquor Wholesaling in Australia
- Liquor Retailing in Australia
- Pubs, Bars and Nightclubs in Australia
International industries
- Global Wine Manufacturing
- Wineries in the US
- Cider Production in the US
- Wine Production in New Zealand
- Wine Production in the UK
Table of Contents
About this industry
Industry definition
The industry purchases grapes and other key ingredients to process into wine, port and wine-based alcoholic beverages. These products are packaged in bottles or casks and sold to wine merchants and retail outlets. The industry also includes the production of other alcoholic beverages not categorised elsewhere, like cider.
What's included in this industry?
Red wineWhite wineSparkling wineFortified wineCiderSherryPerryMeadCompanies
Treasury Wine EstatesPernod Ricard AustraliaCasella Family BrandsPurchase this report to view all 5 major companies in this industry.
Related Terms
WINERIESCELLAR-DOOR SALESPERRYBULK WINENEW WORLDPREMIUMISATIONIndustry Code
ANZSIC 1214 - Wine Production in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
In November 2020, the Chinese Government placed largely prohibitive tariffs on imports of Australian packaged wine. This almost entirely wiped out Australia’s billion-dollar ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Red wine sales have sharply declined in recent years. China was the largest market for Australian red wine and losing that market has significantly reduced demand.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
South Australia has the largest share of wineries in Australia. The state’s climate and landscape make it suitable for growing a wide variety of grapes.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Concentration in the industry has risen over the past few years. While the number of wineries in Australia has increased, the largest players have used their size and scale t...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Chinese tariffs have affected many of the major companies. In response, the larger companies have shifted production offshore for export to China.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Treasury Wine Estates's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Pernod Ricard Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Casella Family Brands's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Treasury Wine Estates, and factors influencing its performance in the industry
- Description and key data for Pernod Ricard Australia, and factors influencing its performance in the industry
- Description and key data for Casella Family Brands, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Wine Australia governs exports according to the Wine Australia Act 2013. Wine producers that wish to export require an export certificate from Wine Australia and the organisa...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Purchase costs have fluctuated in recent years. Wine grape prices move in line with local and global demand trends for wine. Red wine grape prices crashed following a near-to...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Wine Production industry in Australia in 2024?
The market size of the Wine Production industry in Australia is $6.2bn in 2024.
How many businesses are there in the Wine Production in Australia industry in 2024?
There are 2,438 businesses in the Wine Production industry in Australia, which has grown at a CAGR of 3.2 % between 2019 and 2024.
Has the Wine Production industry in Australia grown or declined over the past 5 years?
The market size of the Wine Production industry in Australia has been declining at a CAGR of 8.0 % between 2019 and 2024.
What is the forecast growth of the Wine Production industry in Australia over the next 5 years?
Over the next five years, the Wine Production industry in Australia is expected to grow.
What are the biggest companies in the Wine Production market in Australia?
The biggest companies operating in the Wine Production market in Australia are Treasury Wine Estates, Pernod Ricard Australia and Casella Family Brands
What does the Wine Production in Australia include?
Red wine and White wine are part of the Wine Production industry.
Which companies have the highest market share in the Wine Production in Australia?
The company holding the most market share in Australia is Treasury Wine Estates.
How competitive is the Wine Production industry in Australia?
The level of competition is high and increasing in the Wine Production industry in Australia.
