Demand for Australian Prosecco soars, moving into top ten white varieties for first time

Demand for Australian Prosecco is on the increase, with production soaring by 42% to 936 tonnes, moving it into the top ten white varieties for the first time, according to Wine Australia.

This is at a time while most white grape varieties are seeing their production declining, but Prosecco is bucking this trend, continuing the steady growth seen over the past five years, up from 2189 tonnes in 2015.

The average purchase price of Prosecco in 2019 was $835 per tonne, well above the national average for all white wine grapes of $462 per tonne. While grape production and average prices are highest in King Valley, at over $1000 per tonne, Prosecco is now grown across 11 Australian regions with the bulk being produced in the King Valley and Murray Darling-Swan Hill. 

And the growth in Prosecco production is mirrored in the Australian domestic off-trade wine market, where sales of Prosecco have rocketed by more than 100%  in the past 2 years.

Prosecco is now the eleventh largest varietal by value in the off-trade retail wine market with sales of just over $100 million in 2018–19, according to IRI MarketEdge. Australian Prosecco accounted for two-thirds of total sales with Italy contributing a third. Sales of Prosecco in the domestic market are predominantly between $10 and $20 per bottle.

And according to Wine Business Solutions Wine On-Premise Australia 2018, the share of Prosecco listings of the sparkling wine category jumped from 13.9% in 2017 to 20.3% cent in 2018, with Prosecco taking share from other sparkling wine categories, with the exception of sparkling red. The growth in Prosecco in the domestic on-premise is also supported by data from eBev that shows Prosecco is now the second biggest sparkling wine category behind Chardonnay Pinor Noir blends.

Australia exports only a small amount of its Prosecco, with a total value of almost $2 million shipped in 2018–19, with the bulk - 80%  going to New Zealand.