Australian Shiraz - an overview
- Shiraz is Austalia’s most planted winegrape varietal and is grown in almost all of the country’s wine regions.
- There were around 40,000 hectares of Shriaz planted in 2015, ranking Australia second behind only France with 60,000 hectares and well ahead of third placed Spain (20,000 hectares).
- Australia is also home to the world’s oldest continuously productive Shiraz vines, with some of the oldest plantings dating back to 1843 (Langmeil, Barossa, South Australia).
- These ungrafted, pre phylloxera vines produce small crops of grapes with intensely concentrated flavours.
- In the Australian domestic off trade market Shira sales are on the rise, up by 8% in value and 5% in volume (IRI Worldwide, 12 months to 14/10/18).
- Over the same period, total wine sales in the domestic off-trade market grew by 5% in value and by 0.1% in volume.
- The strongest growth for Shiraz is at $15–49.99 per bottle (in value): $15–19.99, up 14% $20–29.99, up 9%, and $30–49.99, up 23%.
- Shiraz is the second biggest selling category in the Australian off-trade market behind Sauvignon Blanc but it is growing at a faster rate (value growth for Sauvignon Blanc was 1% and volume was flat in the last 12 months).
- Shiraz achieves a higher average price than Sauvignon Blanc ($18.11 per litre versus $13.88 per litre).
- Packaged exports of single variety Shiraz are also on the rise, having grown in the past five years from $389 million to $635 million the equivalent of a compound annual growth rate (CAGR) of 10.
- In comparison, total Australian exports increased by 8% per annum over the same period.
- In the 12 months ended September 2018, the strongest growth in Shiraz exports came in the following price points : $2.50–4.99 per litre, up 8%; $5–7.49 per litre, up 14%, and $10 per litre and above, up 13%.
- The largest category for Australian Shiraz is $10 per litre and above, which accounts for 46% of the value of total Shiraz exports
- Mainland China is fuelling the growth in Shiraz exports, increasing by 25% in value in the past five years, and now accounting for just over half of all Shiraz exports.
- The other top export markets in value terms for Australian Shiraz after China are the US, Canada, the UK and Hong Kong, but these are all flat or declining.
- Growing export markets include New Zealand (5 year CAGR of 10%); Singapore (27%); United Arab Emirates (113%); Japan (8%); and South Korea (47%).
Source: Wine Australia