October 27, 2023 – The international wine market is currently grappling with an oversupply of red wine, leading grape growers to make significant varietal adjustments, notably distancing themselves from shiraz and cabernet sauvignon.
Key Highlights:
Wine grape growers in South Australia are diversifying their varietals to maintain contracts amid the oversupply.
Traditional red wine grape varieties have experienced overproduction, partly due to the imposition of Chinese tariffs.
Australians are increasingly open to exploring newer grape varieties, prompting growers to adapt.
Growers are increasingly focusing on grafting and planting lighter reds and whites to introduce fresh options to consumers.
While more than 10,000 grape varieties are cultivated globally, in Australia, a remarkable 94 percent of crushed grapes originate from just 20 different varieties. Within this selection, shiraz and cabernet sauvignon collectively constitute over a third of the total.
In the wine-rich region of South Australia, which contributes to over half of Australia’s wine production, shiraz has historically reigned as the dominant grape variety, accounting for the majority of the 323 hectares dedicated to new wine grape plantings. However, a transformative shift is underway as lesser-known Italian grape varietals, such as fiano, are now being planted in substantial numbers.
The global oversupply of red wine has fueled this evolution in grape growing practices. Some of the contributing factors to the oversupply include the impact of Chinese tariffs and a growing consumer appetite for exploring alternative wine options. As a result, wine grape growers are proactively adapting by cultivating new varietals and providing consumers with fresh, exciting choices beyond the traditional shiraz and cabernet sauvignon offerings. This transition reflects a broader trend in the wine industry, as it navigates the challenges posed by the oversupply of red wine on the global stage.
