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Summary
- NZ wine exports value for the first time have been noted at NZD 2 billion.
- The export performance has been consistent, and the uptrend pattern expected to continue in the coming years.
- Though the export performance is above than expectations, the industry is facing high production costs and potential labour shortage.
- The sector is aware of the challenges ahead and is ready to plan accordingly so these challenges would not come in the way of the growing industry.
Recently, for the first time, New Zealand wine exports value has touched NZD 2 billion mark. New Zealand Winegrowers, ten years back when the export value was NZD 1.04 billion, had set out the goal to double the export value to achieve NZD 2 billion in 2020.
The latest data by New Zealand Winegrowers show that it has completed its goal now, thanks to the spike in drinking at home.
New Zealand is a relatively young wine producer, and until 1980s, it was only catering to the domestic market. In 1990, the NZ wine export value was NZD 18 million, in 2010 it was NZD 1.04 billion and now in 2020 its NZD 2 billion.
The export performance has been consistent, and industry insiders are expecting it to grow in the coming years. In 2020, for the first four months the new export year from July to October, the country's wine industry saw an increase of 19 per cent on pcp.
The consumers are exploring a wide range of NZ wines; however, Sauvignon Blanc continues to be the flagship export, followed by the second most exported wine, Pinot Noir. Further, Rosé and Pinot Gris are becoming increasingly popular as well.
Braving the Coronavirus storm
The pandemic’s impact on the New Zealand wine industry has been mixed as different parts of this industry are witnessing a variety of opportunities and challenges. Some of the challenges are surging production costs and a potential labour shortage that has also put forth the challenge of meeting the supply with the growing demand for NZ wines overseas.
Also read: A Toast For You! How are Australian Wine Exporters Placed Amid Pandemic?
On one hand, wine export has grown immensely, on the other, the pandemic has affected the selling on-premises and wine tourism. The industry also went through Level 4 lockdown during 2020 harvest and was expecting a worst-case scenario, but to its relief the nightmare did not turn out to be true. Furthermore, locals continue to buy wines and support domestic wine businesses.
The industry has shown resilience in the backdrop of recession, challenging vintages and now the ongoing pandemic. The milestone also reflects the growing popularity and reputation of NZ wines in the world.
Ready for the challenges ahead
New Zealand Winegrowers gauged the challenging times ahead due to the pandemic induced uncertainties. Also, the organisation is confident to rise above the crisis. The prospect of the wine industry depends on its reputation, diversity of offering and its commitments to sustainability.
Managing the upcoming challenges might require the sector to re-plan a few industry dimensions like re-imagining wine tourism and re-thinking its workforce, many of whom come from overseas.
Also read: Growth-Driven and Tailored Approaches in Wine Industry - Accolade Wines vs Treasury Wine Estates
