Tō Mātou Ahumahi Industry

Sources: Stats NZ¹ and IBISWorld - Industry Market Research, Reports, & Statistics²

The growing popularity of New Zealand wine overseas has led to rising wine grape prices. This increased demand and favourable harvests have amplified revenue and profitability for grape growers, even amid labour shortages and supply cost challenges. A massive harvest in 2022 and high export prices led to a sharp increase in export revenue for the year ending June 2023, with export revenue expected to remain high in the mid-term. Winemakers are projected to expand their production to meet rising demand from the European Union following a new free trade agreement.

Only a small number of growers focus on table grapes. Non-wine grape growers face significant competition from imports.

Export Revenue

Following a period of steady growth, the export revenue for Wine increased substantially (by almost 30%) between June 2022 and June 2023. The export value of Wine was $2.4 billion at the end of March 2023, and is forecast to reach $2.5 billion for the year ending June 2023.

Strong demand from overseas, particularly from the United States, the United Kingdom, Australia and the European Union, is expected to continue to maintain high export revenue until 2027 (forecasted at $2.6 billion). The elimination of tariffs due to the New Zealand-United Kingdom Free Trade Agreement came into effect in May 2023 and is expected to boost exports. A free trade agreement with the Eurpean Union is expected to follow in 2024.

Export data for Wine is calculated as part of the Horticulture industry and the export value of Wine constituted 34% of the Horticulture export value as of March 2023. Horticulture export revenue as a whole has been growing steadily since 2015.

GDP Trend

Despite volatility, there is a long-term trend of growth in the contribution of Wine to GDP that is forecast to continue over the next six years.