WINE
SPIRITS
REVENUE: $6.2BN PROFIT: $198.1M BUSINESSES: 1,842 ANNUAL GROWTH 2017-22: 2.4%
REVENUE: $1.8BN PROFIT: $229.3M BUSINESSES: 67 ANNUAL GROWTH 2016-2021: 1.5 PER CENT
Wine is the biggest contributor to the Australian alcohol industry, accounting for 51 per cent of revenue. The category’s biggest players are Treasury Wine Estates with 10.7 per cent market share, Pernod Ricard with 9.4 per cent and Accolade Wines with 8.9 per cent. Wine oversupply, decreasing demand from export markets, declining alcohol consumption, private-label and control-label wines have put pressure on the industry over the last few years, but IBISWorld predicts strong growth over the next five years with many bulk wine producers expected to leave the market; improved pricing, an ease in global oversupply, a shift from the larger producers towards premium branded wine and growing demand from China and other established markets. Ledovskikh said, “Chinese imports of Australian wine grew by 50 per cent in 2015-16 and the average price point was US$6.38 per litre, which is quite high compared to other markets.” Industry revenue should increase by 2.4 per cent each year through to 2022 to reach $7billion according to IBISWorld.
Growing health consciousness and declining spirit consumption have impacted on the spirit industry’s growth in recent times. The RTD segment, which represents the category’s biggest revenue stream, also remains in decline. Interest in more premium, new and local spirits is helping to balance things out, however, and the local industry is expected to keep growing over the next few years. In particular, consumers seem to be interested in Australian gin and whisky and Tasmania is expected to become a hotbed for the latter, home to 11 of the country’s 29 distilleries. The increase in popularity of cocktails and premium spirits over the last few years suggests there will also be more demand for pre-mixed cocktail drinks and higher value spirits, which will be helped by more consumers trying their hand at making cocktails at home. The biggest spirit manufacturers in Australia are Diageo with 24.5 per cent market share, Coca-Cola Amatil/Beam Suntory with 15 per cent and surprisingly, Asahi Holdings, following its acquisition of Independent Distillers, with 12.8 per cent. IBISWorld expects industry revenue to increase by 1.5 per cent each year between now and 2021 to $1.9 billion.
SEGMENTS IN GROWTH SHIRAZ MERLOT SAUVIGNON BLANC PINOT GRIS
SEGMENTS IN GROWTH
SEMILLON
READY-TO-SERVE COCKTAILS
SPARKLING
TASMANIAN WHISKY LIQUEURS
SEGMENTS IN DECLINE CABERNET SAUVIGNON
SEGMENTS IN DECLINE
CHARDONNAY
RTD
Bill Lark, founder of Lark Distillery, one of Tasmania’s best-known whisky producers
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