Australia’s wine market to grow by 4.6% between 2021-2026: report
This comes as more consumers resume social drinking.
As consumers dine out and engage in social drinking, GlobalData projected Australia’s wine market could register a compound annual growth rate (CAGR) of 4.6% between 2021 and 2026.
By 2026, the market is expected to be valued at $9.1b, up from $7.4b in 2021.
“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,” Bobby Verghese, Consumer Analyst at GlobalData, said.
“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 personalization in the recipe or packaging.”
GlobalData reported the market growth will mainly be driven by the fortified wine category with a projected CAGR of 5.7% in the years leading to 2026.
Still wine will follow with a CAGR of 4.6%, and sparkling wine with 3.9% over the same period.
“As the pandemic is brought under control, and economic and social activities normalize, 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.”