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COVID-19’s impact on Australian wine markets and regions

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  • Wittwer, Gly
  • Anderson, Kym

Abstract

This paper provides an empirical case study of impacts of COVID-19 on Australia’s wine sector. Wine exports were subject to disruptions and, like domestic wine sales, were adversely affected not only by temporary declines in consumers’ expected incomes but also by the social distancing measures and self-isolation that led to closure of restaurants, bars, cafes and clubs plus declines in international travel and tourism. Partly offsetting this has been a boost to off-premise and direct e-commerce sales. We first estimate those impacts and their expected partial recovery in 2021 using a new model of global beverage markets. Then, we add results on regional effects, including through domestic wine tourism, using a new economy-wide model with subnational regions. The paper concludes by drawing lessons on how this sector’s resilience to future global shocks could be strengthened.

Suggested Citation

  • Wittwer, Gly & Anderson, Kym, 2021. "COVID-19’s impact on Australian wine markets and regions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(04), January.
    • Handle: RePEc:ags:aareaj:342974
    DOI: 10.22004/ag.econ.342974
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    References listed on IDEAS

    as
    1. Kym Anderson, 2019. "Australian Wine Industry Competitiveness: Why so Slow to Emerge?," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 12, pages 283-308, World Scientific Publishing Co. Pte. Ltd..
    2. Anderson, Kym, 2020. "Asia’s emergence in global beverage markets: The rise of wine," CEPR Discussion Papers 14389, C.E.P.R. Discussion Papers.
    3. Warwick McKibbin & Roshen Fernando, 2020. "Global macroeconomic scenarios of the COVID-19 pandemic," CAMA Working Papers 2020-62, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    4. Kym Anderson & Glyn Wittwer, 2018. "Cumulative Effects of Brexit and Other UK and EU27 Bilateral FTAs on the World's Wine Markets," Wine Economics Research Centre Working Papers 2018-01, University of Adelaide, Wine Economics Research Centre.
    5. Anderson, Kym, 2020. "Consumer Taxes on Alcohol: An International Comparison over Time," Journal of Wine Economics, Cambridge University Press, vol. 15(1), pages 42-70, February.
    6. Kym Anderson, 2020. "Asia’S Emergence In Global Beverage Markets: The Rise Of Wine," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(04), pages 755-779, June.
    7. Wittwer, Glyn & Anderson, Kym, 2020. "A Model of Global Beverage Markets," Journal of Wine Economics, Cambridge University Press, vol. 15(3), pages 330-354, August.
    8. Anderson, Kym & Wittwer, Glyn, 2018. "Cumulative Effects of Brexit and Other UK and EU27 Bilateral FTAs on the World’s Wine Markets," CEPR Discussion Papers 12621, C.E.P.R. Discussion Papers.
    9. Wittwer, Glyn & Anderson, Kym, 2021. "COVID-19 and Global Beverage Markets: Implications for Wine," Journal of Wine Economics, Cambridge University Press, vol. 16(2), pages 117-130, May.
    Full references (including those not matched with items on IDEAS)

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