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Despite favorable growing conditions, Australia did not become a net exporter of wine until the 1890s, and not a significant player internationally until the early 2000s following two decades in which Australia’s wine production quadrupled and the export share of that rose to two-thirds. This chapter seeks to explain how and why the industrial organization of Australia’s wine industry changed over recent decades. It begins with a brief outline of how the industry has evolved through past cycles around its long-run growth path. It then provides details of the industry’s current structural organization and how it developed. The final section speculates on how that structure may change in the decades to come. It concludes that despite the recent downturn in the industry’s fortunes, the country’s competitiveness in international wine markets is at last firmly established and commensurate with its ideal wine-growing climate.
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- The Australian Wine Industry
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