Once small and family-based, the New Zealand wine industry has flourished and is now technologically advanced, thanks in part to overseas investments, which have assisted penetration of the high margin end of the global wine market.
Sauvignon Blanc grapes on the vines in the Marlborough Wine region, Blenheim, South Island, New Zealand.
New Zealand produces a wide variety of quality, premium wines that fetch high international prices on par with traditional European wine-producing countries.
New Zealand wine exporters have seen market share grow in key global markets, particularly the United States. In 1981, just two percent of the sales of New Zealand wines were to overseas markets. In 2012 wine export markets doubled from 89 million litres to 179 million litres (NZIER Report).
Wine exports have increased by $1 billion in the last 10 years, and for the year 31 March, 2014, wine exports were at $1.32 billion (Statistics New Zealand).
Consumption of New Zealand wines and wine based spirits (eg cognac) in China and other Asian markets is also steadily rising.
For investors looking for a good return in a growing sector, the wine industry in New Zealand provides attractive benefits. The New Zealand wine sector has grown strongly since 2008 and some of the country’s larger wineries, such as Montana and Nobilo, have proven to be great investment opportunities for overseas parties.
New Zealand’s Marlborough region is a well-established and highly regarded area for wine making, particularly for Sauvignon Blanc and Pinot Noir varietals. The next most promising areas are Hawke’s Bay, Waipara and Central Otago.