Global wine industry faces demand correction
The global wine industry is experiencing its first “demand-based correction” after three decades of sustained growth, according to the Silicon Valley Bank’s State of the Wine Industry Report 2025.
"Because... you guys still actually have growth." Rob, who is founder and author of the Silicon Valley Bank's State of the Wine Industry Report, said there are a lot of reasons for New Zealand wine's position, "but in my opinion... it's that you guys have the best value, and that's not about price. Value is about perceived quality and price together. I think you guys have that in spades."
He wasn't the only one offering a bright light amid the gloom, with Hong Kong-based wine journalist Natalie Wang talking of China’s economy slowing and wine imports trending down. But New Zealand is an outlier, she told the audience (see page 18). “It’s punching above its weight.” Business dining is on the down and lifestyle-driven consumption is on the rise, which is seeing white wine growth in the market. That’s a win for New Zealand producers because the category and branded image is already quite well known to consumers, Natalie said. “That’s something you can leverage.”
On the topic of silver linings softening storm clouds, the talent and passion of New Zealand’s wine industry was on show at the Celebration Dinner that followed the forum, with Anna Kelland named Young Viticulturist of the Year and Ruby McManaway crowned Tonnellerie de Mercurey New Zealand Young Winemaker of the Year, while the other regional finalists cheered them on. The 2025 New Zealand Winegrowers Fellows – Judy Finn, Gwyn Williams, Jenny Dobson, Clive Jones and Mark Allen – also took to the stage, celebrated for their indefatigable pursuit of better wines and vines, better governance and marketing, and better sustainability measures.
This edition covers the Business Forum then drives on through to the walking and cycling trails of New Zealand wine tourism, where warm hospitality casts a halo over wine brands, giving visitors experiences that will long influence their wine buying decisions. “Our presence in global markets is enhanced by local wine tourism,” says Sonya Coutts from Palliser Estate. “Many overseas tourists go on to purchase our wine products back in their home country.”
This edition also marks a retirement announcement from New Zealand Winegrowers Chief Executive Philip Gregan, after 43 years of incredible commitment to the industry, 34 of them at the helm. “There have been many highlights over the years, but without doubt the biggest highlight has been the privilege of working with and for our brilliant growers and winemakers,” he says. “Their passionate commitment to everything that New Zealand wine stands for continues to inspire me.”
Read More:
- Editorial: Dark clouds and silver linings
- Editorial: Keep moving forward
- Editorial: Major Challenges Facing the Wine Industry
