Wine export growth outshines all others

Once the domain of Dalmatian immigrants and lifestyle blockers looking for a posh hobby, in just 20 years the wine industry has established itself as an integral part of the New Zealand economy.

A new report released by NZIER and NZ Winegrowers says that the wine industry is now worth $1.5 billion to New Zealand’s gross domestic produce (GDP).

New Zealand Winegrowers commissioned the survey to assess the state of the industry, which has grown faster than any other industry in memory and rapidly become an iconic part of the New Zealand landscape.

"For the industry the NZIER report represents a very positive analysis of the contribution grape growing and winemaking make to the New Zealand economy. That contribution totals over $3.5 billion of revenue through our own direct sales and the sales we generate in related sectors such as the tourism and hospitality industries," Winegrowers chairman Stuart Smith says.

New Zealand’s wine exports have grown at 23.8% over the past two years, four times the rate of other all goods.

Wine exports now represent 2.2% of total goods exports. Wine is now the 11th largest export (up from 19th in 2003), behind only dairy, meat, fruit and fish amongst foods.

Over the past five years only cereals and mineral fuels exports have grown faster than wine.

Over that period wine has contributed about 5% of New Zealand’s total goods export growth.

In terms of export dollars per hectare, the wine industry accounts for about 0.4% of all agricultural land use in New Zealand, compared with beef (45%), lamb (22%) and dairy (13%).

Exports generated per hectare of grapes is around $28,000ha, second only to kiwifruit which is around $64,000ha – considerably higher than other primary sectors such as dairy, sheep and beef and forestry which are all less than $5000ha.

The industry plays a pivotal role in some of New Zealand’s regions, and accounts for 20% of Marlborough’s entire economy.

Wine also provides a key tourist boost for the country, accounting for an estimated 225,000 visitors, which add an extra $907 million to the economy.

Wine tourists tend to stay longer (an average of 25 days, compared to 20) and spend more per visitor ($4030 compared to $2850).

“The challenge for the industry, particularly in these very tough economic times, is to continue to build on the success to date so we make an even greater contribution to economic development in New Zealand. To achieve that growth the industry will need to continue to invest, focus on quality, be sustainable and be strongly market led. In addition it is vital that governments deliver supportive regulatory environments as a foundation for that growth,’ Mr Smith says.

Other Facts
Total employment impact 16,568 fulltime jobs
Estimated winemaking sales $1.22 billion
Estimated grape growing sales $614 million
Estimated cellar door hospitality sales $80 million