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The leading data and analytics company is confident there will be a compound annual growth rate (CAGR) of 2.4% in the sector.

GlobalData’s report, ‘Australia Wine – Market Assessment and Forecasts to 2024’, reveals that the sector is majorly driven by growth in the sparkling wine category, which is forecast to register the fastest value CAGR of 2.7% during 2019-2024. The category will be followed by still wine and fortified wine, which is expected to record CAGRs of 2.4% and 1.6%, respectively, during the next five years.

This follows Tasmania’s House of Arras being named No.1 sparkling in the Decanter Magazine Top 100 wines of 2020 for its E.J. Carr Late Disgorged 2004. The wine, which retails for $265.95, was awarded an Outstanding Classification with an impressive 96 points by the fine wine judging panel, chosen above sparkling wines from around the world, ahead of Champagne Krug 2006.

Sanchi Agarwal, Consumer Analyst at GlobalData, said: “Favorable economic conditions for wine production coupled with the Australian consumers’ willingness to spend more on premium wine products are driving the Australian wine sector. Additionally, millennials (aged 20-34 years) form a vital consumer segment as they perceive consuming wine to be an important part of social life while spending quality time with family and friends.”

The per capita expenditure of wine in Australia decreased from US$450.2 in 2014 to US$379.9 in 2019, which was higher than both the global level (US$73.8) and the regional level (US$32.6). However, per capita expenditure of wine in Australia is expected to reach US$385.4 in 2024.

Global Data names Constellation Brands, Treasury Wine Estates and Pernod Ricard as the top three companies in the Australian wine sector, with Rosemount Estate and De Bortoli as the leading brands in the Australian wine sector in volume terms in 2019.

Agarwal concluded: “Australian consumers are highly discerning of wine quality and regard wine containing artificial or synthetic additives/preservatives to be harmful for health, rendering them unfit for consumption. This consumer emphasis on purity of ingredients and in wine is prompting winemakers to use organically farmed grapes in their creations for a clean label positioning.”