The market research company predicted both value and volume growth rates are set to more than double the sector average. The Compound Annual Growth Rate (CAGR) is expected to be 1.5% and 2.8% respectively as consumers spend more on larger amounts. This increase has been driven by Australian producers successfully marketing the product as an "everyday drink".
The predictions were published in the Canadean report: The Future of the Wine Market in Australia to 2017.
The global financial crisis and signs of a slowdown in the Australian economy have impacted consumer confidence, according to Canadean and the wine sector is projected to see a volume CAGR of 1.2% to 2017 and value growth is forecast to be 0.6% for the same period.
Still wine was the largest category in the sector, with value and volume shares of 83.9% and 88.5% respectively in 2012. Whilst the category is the largest, growth is forecast to be below the sector average with a value CAGR of 0.4% and volume of 1.1% to 2017.
Fortified wine accounted for only 1.6% of value in 2012 taking a slightly higher volume share of 3.2%. The category has a projected volume CAGR of 0.8% up to 2017, but its value growth is expected to be well above the line at 1.4%, supported by "good margins for niche products".
