Increased Export Competition

Although the EU and South America have historically dominated exports of bulk wine, Australia and South Africa have greatly expanded their exports. As a result, their combined market share now accounts for 40 percent, up from only 22 percent a decade earlier. South Africa’s weaker currency has given the country a comparative advantage.Australian exporters are shipping more lower-priced wine in bulk because of their stronger currency and higher bottling costs.

Source: USDA, Foreign Ag Service