Sparkling wine category to pop in 2017

The Australian sparkling wine category is projected to see the most growth in the wine category to 2017, according to Canadean. The market research firm says the sparkling wine category’s value and volume growth rates are set to more than double the sector average over the period.

Its compound annual growth rate (CAGR) for value and volume is expected to be 1.5% and 2.8% respectively as consumers spend more on larger amounts.

In contrast, the Australian wine sector is forecast to experience only moderate growth up to 2017, with consumer confidence having been impacted by the global financial crisis and signs of the Australian economy slowing down.

Australian wine sector category shares by value and volume growth rates. Source: Canadean.

The wine sector is expected to see a volume CAGR of 1.2% to 2017 and value growth is forecast to be 0.6% for the same period.

Still wine will remain the largest category in the sector. Currently, its value and volume shares sit at 83.9% and 88.5% respectively. While it remains the largest category, growth is forecast to be below the sector average with a value CAGR of 0.4% and volume of 1.1% to 2017.

Fortified wine accounted for just 1.6% of value in 2012, taking a slightly higher volume share of 3.2%. The category has a projected volume CAGR of 0.8% up to 2017, but its value growth is expected to be well above the line at 1.4%, supported by good margins for niche products.

This information is drawn from Canadean’s report, ‘The Future of the Wine Market in Australia to 2017’, which was published in July 2013.