New Zealand Winegrowers has released its annual report, celebrating its 30th anniversary of sustainable winegrowing.
Across three decades of consumer-driven international growth and success, the New Zealand wine industry has built a strong reputation for highly distinctive, premium, sustainable wines.
This year marks the 30th anniversary of Sustainable Winegrowing New Zealand, an industry led, independently audited, sustainability certification programme.Sustainability is a key differentiator for New Zealand wine’s reputation.
That reputation has lifted exports to over NZD 2.10 billion per annum. Success has fuelled investment in 42,000 hectares of vineyards across regional New Zealand, state-of-the-art processing facilities, and strong brands that proudly bear New Zealand on the label. Wine from New Zealand is exported to over 100 countries, with 90 percent of wine produced here heading to global markets.
While the industry has many positives, Fabian Yukich, Chair New Zealand Winegrowers, outlines challenges in the report. “A strong reputation and in-market performance ahead of competitors are real positives on which to build for the future, however, producers are currently navigating their way through a complex and uncertain business environment.
“Much of the current focus of industry activity is on the immediate challenges confronting growers and wineries. Market and economic developments are compounding industry-specific issues to create a highly uncertain environment”, he said.
Despite imposition of the higher tariffs late in the year, the major market for New Zealand wine remains the USA with exports valued at NZD 762 million, down three percent in the past year. While the increased tariffs have been in place since April with a further increase in August, it is not yet possible to discern the effect of these in the export data.
The strongest growth in the past year has been from emerging export destinations. Shipments to China grew 47 percent to NZD 56 million, while exports to South Korea lifted 92 percent to NZD 44 million. Overall exports to second-tier markets (all those except the UK, USA and Australia, which take over 70 percent of our exports) grew 17 percent in the past 12 months to just under NZD 600 million. This reflects strong trade and consumer interest as well as the ability of wineries to develop new markets with improved supply. According to market researcher IWSR, lighter refreshing styles are outpacing overall wine category performance. This shift is driven by varietals with more refreshing palate profiles, which New Zealand excels in delivering.
Favourable weather conditions in the run-up to vintage 2025 delivered a crop that would have significantly exceeded any previous vintage in New Zealand’s history. Throughout the country, vintage weather was marked by warm, dry days and cool nights, positive conditions for a high-quality harvest. Against the backdrop of an uncertain demand outlook, it was unsurprising that wineries limited their grape intake.
“While much has changed since 2020, the fundamentals that have made New Zealand wine successful over the past three decades have not. Success in the future will reflect this: we must continue to produce highly distinctive, premium and sustainable wines that are an enduring reflection of New Zealand and its people”.
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