Importance Score: 72 / 100 🔴
Austrian Wine Exports See Decline Amidst Global Market Volatility in 2024
Austrian wine exports experienced a downturn in both value and volume during 2024, as reported by the national industry association, citing a “challenging global market situation.” This decrease marks the first decline in eight years for wine exports from Austria, a sector that had previously seen significant growth.
Key Export Figures for Austrian Wine
Data from Statistics Austria, referenced by the industry group, highlights that the value of Austrian wine exports decreased by 6% to €233.3 million ($252.4 million). Export quantities also saw a reduction, falling by 1.7% to 64.2 million litres.
Industry Perspectives on Export Performance
Chris Yorke, CEO of the Austrian Wine Marketing Board, stated that “All wine-producing nations are currently encountering substantial challenges, including sharply increased costs, reduced consumer purchasing interest, and shifts in global drinking habits, among others.”
Yorke further noted, “Adding to these difficulties, the worldwide economic climate is presently highly unstable, making it challenging to develop long-term sales strategies.”
An earlier report from the Austrian Wine Marketing Board in January had anticipated a decrease in Austria’s wine exports for 2024 compared to the record highs of 2023.
The report indicated that after a period of growth, with wine exports increasing by 62.7% or nearly €90 million since the last contraction in 2015, the sector is now facing headwinds.
Bottled vs. Bulk Wine Export Trends
A general decrease was observed in bottled wine exports from Austria, with volumes dropping by 5.1% and value declining by 6.3%.
Red Wine Exports Particularly Affected
Bottled red wines faced significant headwinds, with a notable 12.5% decrease in volume and a 14.4% reduction in value.
Bulk Wine Exports Show Mixed Results
Conversely, bulk wine exports demonstrated growth in volume, rising by 16.1%. However, lower prices in this category led to a 1.4% decrease in the total export value of bulk wine.
Performance in Key Export Markets
Germany Remains Top Market Despite Decline
Germany continued to be the primary destination for Austrian wine exports, representing 60.2% of total shipments and 42.3% of export revenues.
However, the value of exports to Germany experienced a 13.6% decrease, falling to €98.8 million, although this figure remained above the 2022 value of €94.5 million. Export volume to Germany also decreased by 4.4%.
Yorke remarked, “In 2023, our wine exports narrowly missed reaching a quarter of a billion euros at €248 million.”
He added, “The primary factor driving this was exceptionally high bottled wine exports to Germany, our main export market. With a return to higher volumes of more affordable bulk wine being sold to Germany last year, we soon recognized that matching the exceptionally high export value of 2023 would be unlikely. The overall global economic situation is simply too unpredictable at present for that.”
Switzerland Sees Significant Export Losses
Switzerland, previously Austria’s second-largest export market, faced “notable losses,” with export volume decreasing by 33.1% and value falling by 18.2%.
This downturn was partly attributed to a general reduction in Swiss wine imports, especially of red wines.
US Overtakes Switzerland as Second Largest Market
The US has now surpassed Switzerland to become Austria’s second-largest wine export destination, accounting for 8.5% of revenues.
Exports to the US showed positive trends, increasing by 6.5% in volume and 6.2% in value.
Growth in Canada and Nordic Markets
Canada also increased its intake of Austrian wine, with import volume rising by 15.1% and value by 12.1%.
Exports to the Nordic “monopoly markets,” encompassing Norway, Sweden, and Finland, saw an increase of 1.9% in both volume and value, as reported by Statistics Austria.