Management Summary Key takeaways
Premiumisation and the ‘less -but- better’ trend are persisting in the Australian market, to the benefit of wines priced in the super-premium band or higher (from AUS$20). Recalled typical spend for a bottle of wine has also increased, by 16% since 2019, for on-premise occasions. Trade experts say there are two main drivers of this: wine drinkers moderating consumption and drinking less but better; and high-income earners shifting spend from large purchases to affordable luxuries. 5. The push into premiumisation gathers pace
It is still too early to see the full impact of current economic conditions and the rise in the cost of living, but a distinct generational divide seems to be appearing. Older regular wine drinkers seem to be sticking with the same products, but seeking savings through going out less, buying less wine and buying cheaper wine. Gen Z and Millennials are spending more on going out and buying larger quantities and more expensive wine. With younger consumers more likely to be impacted by an economic downturn, whether this behaviour will persist into 2023 is uncertain. 7. Generational divide in cost of living responses
6. On-premise frequency increases
Across all occasion types, on-premise frequency of wine consumption has increased since 2019, a post-COVID boost to drinking in restaurants and bars. Celebratory and formal occasions have seen the biggest increases in consumption frequency.
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Wine Intelligence Australia Wine Landscapes 2022
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