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Grape Growing in New Zealand - Market Research Report (2015-2030)

Kathrina Gonzales Kathrina Gonzales Melbourne, Australia Last Updated: June 2025 ANZSIC A0131NZ

Revenue

$1.1bn

2025-26

$1.1bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

2,269

Businesses

1,055

Wages

$XXX.Xm

Grape Growing in New Zealand industry analysis

The Grape Growing industry is navigating a complex period marked by record harvests, shifting demand and evolving market dynamics. Exceptional growing conditions have led to abundant, high-quality yields, but this surplus has coincided with weakening global wine consumption, particularly in key export markets. Consequently, wineries have reduced intake volumes, leaving many growers with unsold fruit and lower prices. Growers without long-term contracts have been most affected, facing volatile income and escalating per-unit costs. In response, many focus on cashflow management, yield control and cost-cutting while seeking innovative marketing strategies to move excess inventory. At the same time, shifting consumer preferences towards low-alcohol, organic and sustainable wines have accelerated changes in vineyard practices and varietal selection. The industry’s commitment to sustainability certification has strengthened profitability and become a competitive asset, bolstering international market access and reinforcing New Zealand’s clean, green brand. While the current oversupply presents immediate financial and operational challenges, growers that align with market trends and prioritise quality and sustainability are better positioned to withstand short-term disruptions. Industry revenue is expected to have decreased at an annualised 0.9% over the five years through 2025-26 to reach $1.06 billion, including an anticipated fall of 0.3% in 2025-26.

Trends and Insights

  • Oversupply and weakening demand have driven down grape prices, reducing grower incomes and increasing financial pressure. Without long-term contracts, many growers cut costs and rethink marketing, sales and production strategies to navigate a more volatile global wine market.
  • White wine grapes have expanded as a share of revenue over the past few years. Grape growers are expanding their white wine plantings as downstream demand for white wines, like sauvignon blanc, takes off.
  • Marlborough is the largest grape growing region, driven by its ideal climate and global reputation for quality and sustainability. Strong export channels reinforce its leadership along with a collaborative industry environment that attracts both small- and large-scale investment.
  • While New Zealand's reputation for premium wine drives demand for high-quality grapes, price competition remains intense. Bulk wine producers, in particular, exert downwards pressure on grape prices, compelling growers to balance quality with cost efficiency to stay competitive.
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Competitors

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Complementors

  • There are no industries to display.

Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 0.9 % over the past five years, to reach an estimated $1.1bn in 2025.

Trends and Insights

Oversupply and weak demand have forced grape growers to rethink operations

  • According to a B2B News article in May 2025, the 2024 and 2025 harvests delivered some of the largest grape yields on record, driven by ideal weather conditions across key regions like Marlborough, Hawke’s Bay and Central Otago, resulting in exceptional volumes and high-quality fruit. However, this production abundance has collided with weakening global demand – particularly in major export markets like the United States and the United Kingdom, where economic pressures and shifting consumer preferences have dampened wine consumption – and softer domestic demand, leading to a significant oversupply and mounting volumes of unsold inventory.
  • Additional trends and insights available with purchase
Grape Growing in New Zealand
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Growing demand from wine production will drive industry revenue higher

  • New Zealand's Wine Production industry is poised for growth. The New Zealand Winegrowers Annual Report 2024 highlights that New Zealand remains one of the world's most export-driven wine producers, with nearly 90% of its total wine sales generated in international markets. With global wine consumption stabilising and premium New Zealand varietals – especially sauvignon blanc and pinot noir –maintaining strong reputations, both domestic and international wineries are planning to increase production. Wine production volumes are projected to increase as global markets gradually recover and wineries draw down existing inventory. This recovery and strong export demand for premium New Zealand wines will lift demand for high-quality grapes.

Biggest companies in the Grape Growing in New Zealand

Company
Market Share (%)
2026
Revenue ($short_0)
2026

There are no companies that hold a large enough market share in the Grape Growing in New Zealand industry for IBISWorld to include in this product.

Products & Services Segmentation

Grape Growing in New Zealand
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Table and dried grapes, Red wine grapes and White wine grapes. Table and dried grapes is the largest segment of the Grape Growing in New Zealand.

Trends and Insights

White wine grapes have expanded their market lead through export dominance and premium positioning

  • White wine grapes, led by sauvignon blanc, now dominate New Zealand’s wine exports, making up about 95% of shipments to key markets like the United States, where demand for fresh, crisp white wines continues to rise. Other major white wine grapes grown in New Zealand include chardonnay, pinot gris and riesling.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Grape growing companies cultivate both wine and table grapes. This industry also includes the sun-drying of grapes conducted by table grape growers.

What's included in this industry?

Products and services covered in the Grape Growing industry in New Zealand include White wine grapes, Red wine grapes and Table and dried grapes.

Companies

Companies covered in the Grape Growing industry in New Zealand include .

Purchase this report to view all major companies in this industry.

Related Terms

Related terms covered in the Grape Growing industry in New Zealand include trellis, wine grapes, table grapes, terroir, cellar doors, vertical integration and premium positioning.

Industry Code

ANZSIC 2006

ANZSIC 0131 - Grape Growing in New Zealand

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Oversupply and weakening demand have driven down grape prices, reducing grower incomes and increasing financial pressure. Without long-term contracts, many growers cut costs ...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

White wine grapes have expanded as a share of revenue over the past few years. Grape growers are expanding their white wine plantings as downstream demand for white wines, li...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Marlborough is the largest grape growing region, driven by its ideal climate and global reputation for quality and sustainability. Strong export channels reinforce its leader...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

While New Zealand's reputation for premium wine drives demand for high-quality grapes, price competition remains intense. Bulk wine producers, in particular, exert downwards ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The industry is dominated by small, family-owned vineyards supplying nearby wineries to maintain grape freshness and limit transport costs. Operations are generally niche and...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    Sustainable Winegrowing New Zealand (SWNZ) certification ensures adherence to strict environmental and social standards through regular audits. Displaying the SWNZ logo signa...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2015-2030) 
    • Assistance historical data and forecast (2015-2030) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    Profitability has strengthened as rising export prices and a premiumisation strategy have offset increasing input costs for growers. Effective cost control and securing long-...

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
    • Investment vs. share of economy

    Data tables

    • Cash Flow & Debt Service Ratios (2015-2030)
    • Revenue per Employee (2015-2030)
    • Revenue per Enterprise (2015-2030)
    • Employees per Establishment (2015-2030)
    • Employees per Enterprise (2015-2030)
    • Average Wage (2015-2030)
    • Wages/Revenue (2015-2030)
    • Establishments per Enterprise (2015-2030)
    • IVA/Revenue (2015-2030)
    • Imports/Demand (2015-2030)
    • Exports/Revenue (2015-2030)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2015-2030)
    • IVA (2015-2030)
    • Establishments (2015-2030)
    • Enterprises (2015-2030)
    • Employment (2015-2030)
    • Exports (2015-2030)
    • Imports (2015-2030)
    • Wages (2015-2030)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Grape Growing industry in New Zealand in 2025?

    The market size of the Grape Growing industry in New Zealand is $1.1bn in 2025.

    How many businesses are there in the Grape Growing industry in New Zealand in 2025?

    There are 1,055 businesses in the Grape Growing industry in New Zealand, which has declined at a CAGR of 0.5 % between 2020 and 2025.

    How may import tariffs affect the Grape Growing industry in New Zealand?

    The Grape Growing industry in New Zealand is likely to be impacted by import tariffs with imports accounting for a moderate share of industry revenue.

    How may export tariffs affect the Grape Growing industry in New Zealand?

    The Grape Growing industry in New Zealand is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

    Has the Grape Growing industry in New Zealand grown or declined over the past 5 years?

    The market size of the Grape Growing industry in New Zealand has been declining at a CAGR of 0.9 % between 2020 and 2025.

    What is the forecast growth of the Grape Growing industry in New Zealand over the next 5 years?

    Over the next five years, the Grape Growing industry in New Zealand is expected to grow.

    What does the Grape Growing industry in New Zealand include?

    White wine grapes and Red wine grapes are part of the Grape Growing industry in New Zealand.

    How competitive is the Grape Growing industry in New Zealand?

    The level of competition is moderate and steady in the Grape Growing industry in New Zealand.

    Methodology

    How are IBISWorld reports created?

    IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

    Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

    IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in New Zealand include:

    • Statistics New Zealand
    • New Zealand Company Register
    • Ministry of Business, Innovation & Employment

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

    How does IBISWorld forecast its data?

    IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

    IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

    Learn more about our methodology and data sourcing on the Help Center.

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