New Zealand wine exports slip 14% in July as key markets retreat

Wine exports fell to $153.2 million in July, down 14.2% year-on-year, as shipments to the United States and United Kingdom dropped by a quarter amid weaker northern hemisphere demand.

July exports decline on lower volumes

New Zealand exported $153.2 million worth of wine in July 2023, down 14.2% from $178.5 million in the same month last year. Volume fell more sharply, declining 19.2% to 19.8 million litres. The average export price lifted slightly to $7.74 per litre, cushioning the value decline. Shipments reached 56 destination markets during the month.

Despite the July downturn, the rolling 12-month total to July 2023 reached $2.38 billion, up 22.2% on the previous year, reflecting the strong export performance earlier in the period.

Major markets show divergent trends

The United States remained the largest market but recorded a steep 25.1% decline, with shipments falling to $47.4 million and capturing 30.9% of total export value. The United Kingdom, the third-largest destination, mirrored this weakness with a 25.6% drop to $30.3 million (19.8% share). Canada also retreated sharply, down 27.3% to $7.7 million.

Australia bucked the trend, growing 5.9% to $36.6 million and claiming a 23.9% share of exports, maintaining its position as the second-largest market.

China and Middle East deliver standout growth

China recorded the most dramatic turnaround among major markets, surging 161.8% year-on-year to $4.8 million and claiming 3.1% of export value. The United Arab Emirates posted even stronger percentage growth at 218.7%, reaching $1.4 million.

Several European markets demonstrated resilience. Ireland grew 29.2% to $3.3 million, whilst the Netherlands jumped 35.1% to $2.6 million. Germany added 10.1% to reach $3.5 million, and Singapore expanded 9.7% to $2.6 million.

France represented the sharpest contraction among markets above $500,000, plunging 64.0% to $1.2 million. The Republic of Korea fell 34.6% to $1.2 million, whilst Belgium declined 28.8% to $700,000.

Bulk shipments weaken more than bottled wine

Bottled wine in containers of two litres or less accounted for $110.7 million of July exports, declining 11.6% year-on-year. Bulk wine shipped in containers exceeding 10 litres totalled $41.9 million, representing 27.3% of total export value, and fell more steeply at 19.5%.

The pricing gap between formats remained substantial: bottled wine averaged $10.40 per litre compared with $4.62 per litre for bulk shipments, a ratio of 2.3 to one. The sharper decline in bulk exports suggests more significant volume pressure in the lower-value segment, though bulk wine's resilient share of overall value indicates continued demand for this format.

Provisional data

These figures are drawn from Statistics New Zealand customs data for July 2023. Monthly export statistics are initially provisional and subject to revision as late declarations are processed and classifications are refined.