New Zealand wine exports slip 28.7% in September as volumes tumble

Wine exports fell to $199.9 million in September, driven by a 33.3% volume decline that outpaced the value drop and left all major markets in retreat.

September shipments retreat across the board

New Zealand exported $199.9 million of wine in September 2023, down 28.7% from the same month last year. Export volumes fell even more sharply, dropping 33.3% to 24.9 million litres. The average realised price of $8.02 per litre reflected the steeper volume decline, though prices remained under pressure across most categories.

Shipments reached 60 destination markets during the month, maintaining New Zealand's broad geographic spread despite the overall contraction.

Year-over-year decline follows strong 12-month run

September's retreat contrasts with a robust rolling 12-month performance. In the year to September 2023, total wine exports reached $2,285.2 million, up 13.1% on the previous 12-month period. September's monthly result of $199.9 million nonetheless represented a modest sequential improvement from August's $189.8 million, continuing a recovery from the year's low point of $125.5 million in May.

The comparison with September 2022's $280.3 million highlights the scale of the year-over-year contraction, marking one of the sharpest monthly declines in recent quarters.

Major markets uniform in decline, European volatility evident

All of New Zealand's top four markets recorded significant year-over-year declines. The United States remained the largest destination at $73.6 million, representing 36.8% of total exports but down 23.9%. The United Kingdom took $47.0 million (23.5% share, down 24.1%), whilst Australia absorbed $39.9 million (20.0% share, down 27.2%). Canada rounded out the top four at $16.8 million (8.4% share, down 21.6%).

Ireland, China and Japan all posted declines exceeding 16%, with Japan down 22.8% to $1.5 million. The Republic of Korea provided a rare bright spot, rising 5.6% to $1.4 million.

European markets displayed marked volatility. Germany suffered a 79.2% collapse to $2.4 million, whilst France plunged 89.7% to $0.6 million. Denmark fell 75.0% to $0.6 million and Singapore dropped 65.6% to $1.0 million. By contrast, Belgium surged 273.2% to $0.7 million and Thailand jumped 57.4% to $0.8 million, though both remained modest in absolute terms.

Bulk exports bear the brunt as price gap persists

Bulk wine shipped in containers exceeding 10 litres accounted for $51.4 million, or 25.7% of September's export value. Bulk shipments fell 35.6% year-over-year, a steeper decline than the 25.3% drop in bottled wine exports, which totalled $147.9 million.

The pricing differential remained stark: bottled wine averaged $10.64 per litre, more than double the $4.71 per litre achieved for bulk exports. This $5.93 per litre gap underscores the continued bifurcation of New Zealand's export mix between premium bottled products destined for retail and lower-value bulk shipments for offshore bottling or blending.

Provisional data subject to revision

These figures are drawn from Statistics New Zealand customs data for September 2023. As with all trade statistics, the most recent month's data are provisional and subject to revision as late declarations are processed and classifications finalised.