Australian wine remains top country of origin in UK
Australia is the top country of origin for wine in the UK, accounting for over 17% of consumption, while the UK is Australia’s number one export destination by volume, according to a recent Wine Australia bulletin.
This is just ahead of Italy, which accounts for 16.7% of UK wine consumption, France at 12.3% and Spain at 11.4%. As the sixth largest wine market in the world, the UK consumed 138 million 9-litre cases of wine in 2017 nearly all of which is imported. As with many other Western markets, the UK wine market is well established and total consumption is declining, in line with global figures which saw the total wine market slide by 2% in volume and 1% in value in 2017.
While UK consumers drink less still wine per person than most of the rest of Europe, they rank much higher when it comes to sparkling wine consumption. Brits consume about 2.6 litres per adult of sparkling wine per year and 20 litres of still wine.
Top five consumed sparkling wine countries of origin in UK
Total consumption of sparkling wine increased by 4% in 2017 to 15 million cases with Italian sparkling wine being the key driver of growth, up by 11% in 2017, though that growth has slowed – in 2016 sales were increasing year on year by 18%.
Champagne sales, meanwhile, dropped by 9% as UK consumers sought better value elsewhere, notably in English sparkling wine, which has seen consumption jump by 7% in 2017, albeit from a low base.
Increased awareness of the health implications of heavy drinking, along with duty increases and increased competition from craft beer and spirits has resulted in UK consumers drinking less wine.
According to Wine Intelligence, the number of adults drinking wine at least once a month has fallen by about 1 million, to 28.5 million, and the weekly drinking population has also declined by one million, to just over 22 million adults. 43% of regular wine drinkers are seeking to reduce their alcohol consumption, and Brexit-induced uncertainty is causing tough market conditions, according to Wine Australia.
In the 12 months to September 2018, Australian wine exports to the UK increased by 9% in value to $380 million and 6% in volume to 239 million litres (27 million 9-litre case equivalents).
Laura Jewell MW, Wine Australia’s regional general manager, EMEA, said ‘The UK continues to show growth by both value and volume, driven mainly by the larger brands packing in the UK for distribution across Europe while it is still straightforward to do so. Brexit negotiations continue apace, which will have some impact on freedom of movement of trade, but until they are finalised the uncertainty remains, and brand owners are putting contingency plans in place for both worst- and best-case scenarios."
Australia’s performance in the off-trade market continues to be positive, growing by 3% in value to £1.2 billion in the year ended September 2018. This growth in value is driven by growth in premium wine, with Australian wines priced above £6 per bottle increasing at a rate of 11%, outpacing the total market.