New Zealand wine exports soar in 2023

In an impressive showing for the New Zealand wine industry, the first six months of 2023 experienced a surge in wine exports, signaling a consistent uptrend since the decline witnessed in 2021. According to official data from New Zealand's customs, wine exports for the country surged by approximately 20%, reaching 122.3 million liters. The monetary figures aligned with this growth, translating to approximately $531.1 million (967.4 million NZD) at an average stable price of $4.35 per liter (7.91 NZD/liter), marking a 0.3% increment.

This growth in 2023 solidified New Zealand's position as a leading global wine provider, which registered the most significant increase in sales in the first half of the year. This period also set a new record in terms of export value, surpassing the figures from 2020. However, in terms of volume, it still trails behind 2019 and 2020. Interestingly, June 2023 ended a ten-month streak of consecutive growth in value terms, with volumes dropping in both May and June after eight months of remarkable growth. The data from the second half of the year will be instrumental in determining whether this indicates a change in trajectory.

A Closer Look at the Types of Wines Exported

Various New Zealand wines experienced substantial growth in terms of value during the first half. Packaged wine, the only segment that witnessed a price decline of 1.8% to $5.32 per liter (9.67 NZD/l), spearheaded the exports. This segment accounted for approximately 76 million liters, registering an 18.8% growth, and contributing $403.7 million (734 million NZD), which makes up 62% of the total volume and 76% of the overall value.

Bulk wine also commanded a significant share of exports, expanding by 20.4% in volume and 31.3% in value, culminating in 44.4 million liters and approximately $119.24 million (216.8 million NZD). The average price stood 9% higher at $2.69 per liter (4.89 NZD/l), markedly above the global average for such wines.

Bag-in-box wines, while not as prominent as the aforementioned categories, showcased significant growth. Their volume grew by 120%, amounting to 1.34 million liters, and their value increased by 144%, reaching approximately $3.93 million (7.15 million NZD) at an average price of $2.94 per liter (5.35 NZD/l), marking an 11% surge. Conversely, sparkling wines experienced a 14.4% dip in volume, amassing 672,000 liters, yet their revenue jumped by 18% to approximately $5.23 million (9.5 million NZD), driven by a staggering 38% increase in the average price to $7.76 per liter (14.11 NZD/l).

Main Destinations for New Zealand Wine

The United States retained its top spot as New Zealand's premier wine destination, with wine exports to the country reaching 41.1 million liters and approximately $190.2 million (345.9 million NZD). The UK followed closely, securing the second spot with a significant uptick in imports, amounting to 35 million liters and approximately $133.7 million (243 million NZD). Among the top ten markets for New Zealand wine, only Canada and Ireland recorded downturns.

Canada, which ranks fourth, saw its imports decrease to 5.5 million liters and around $33 million (60 million NZD). However, it experienced a positive turn in June. In contrast, countries like Germany, France, the Netherlands, China, and South Korea witnessed appreciable growth, with Ireland being the only country to record a decline among them.