The Australian wine industry has undergone a great amount of change in a short amount of time. In the 1960s, Australia was a fortified-focused nation; fast-forward 60 years, and it is a burgeoning table-wine nation. The past three decades have been a particularly important period of development. Today, Australia is the fifth largest wine producer in the world, making 1.6 billion bottles per year, approximately 60% exported and 40% consumed domestically. While Australia is not considered an emerging market, it is also not a mature one when compared with Europe. Rather, Australia sits in the middle, still trying to shape its wine identity. A look back through recent decades will highlight both the steep learning curve the Australian industry has been on and the opportunities for development that remain.
In the 1960s, fortified wines dominated in Australia, accounting for a staggering 78% of consumption. British wine writer Oz Clarke comments, “Sunshine in a bottle is what Australia offered in the 1980s. Lovely, ripe, affordable grog.” These wines dominated the export market, eroding the advancement of quality wines—but they also opened the world’s eyes to Australia as a wine-producing nation. Abroad, the deep discounting in the United Kingdom, Australia’s key market, resulted in the degradation of price point and of the market perception of Australian wines at a premium quality level. There were also significant changes taking place domestically. Immigrants brought their food and wine cultures into Australia, women began taking a more active role in wine-purchasing decisions, and wine was becoming a lifestyle product. The market began shifting from fortified to table wine, a change that would shape the next three decades.
In the 1990–2000 decade, government strategies worked to cement the
Excellent insight into the market. I am seeing many parallels to Rioja. Is the bulk wine market as relevant as it was 20 years ago?