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COVID-19's Impact on Australian Wine Markets and Regions

Author

Listed:
  • Glyn Wittwer

    (Centre of Policy Studies, Victoria University, Australia)

  • Kym Anderson

    (Wine Economics Research Centre, School of Economics, University of Adelaide, Australia, and Arndt-Corden Dept of Economics, Australian National University, Canberra ACT 2601, Australia)

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 sub-national regions. The paper concludes by drawing lessons on how this sector’s resilience to future global shocks could be strengthened.

Suggested Citation

  • Glyn Wittwer & Kym Anderson, 2021. "COVID-19's Impact on Australian Wine Markets and Regions," Wine Economics Research Centre Working Papers 2021-02, University of Adelaide, Wine Economics Research Centre.
    • Handle: RePEc:adl:winewp:2021-02
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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. Garnaut,Ross, 2008. "The Garnaut Climate Change Review," Cambridge Books, Cambridge University Press, number 9780521744447, September.
    5. Kym Anderson & Glyn Wittwer, 2019. "Cumulative Effects of Brexit and Other UK and EU-27 Bilateral Free-Trade Agreements on the World’s Wine Markets," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 7, pages 147-166, World Scientific Publishing Co. Pte. Ltd..
    6. 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.
    7. 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.
    8. 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.
    9. Kym Anderson & Glyn Wittwer, 2019. "Modeling Global Wine Markets to 2018: Exchange Rates, Taste Changes, and China’s Import Growth," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 3, pages 51-90, World Scientific Publishing Co. Pte. Ltd..
    10. 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.
    11. Wittwer, Glyn, 2019. "Estimating the regional economic impacts of the present drought on NSW," 2019 Conference (63rd), February 12-15, 2019, Melbourne, Australia 285089, Australian Agricultural and Resource Economics Society (AARES).
    12. Glyn Wittwer, 2020. "Estimating the Regional Economic Impacts of the 2017 to 2019 Drought on NSW and the Rest of Australia," Centre of Policy Studies/IMPACT Centre Working Papers g-297, Victoria University, Centre of Policy Studies/IMPACT Centre.
    13. 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.
    14. Kym Anderson & Vicente Pinilla, 2022. "Wine's belated globalization, 1845–2025," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 742-765, June.
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    Cited by:

    1. Jose Antonio Cava Jimenez & Mª Genoveva Millán Vázquez de la Torre & Mª Genoveva Dancausa Millán, 2022. "Enotourism in Southern Spain: The Montilla-Moriles PDO," IJERPH, MDPI, vol. 19(6), pages 1-21, March.
    2. Glyn Wittwer, 2022. "Preparing a multi-country, sub-national CGE model: EuroTERM including Ukraine," Centre of Policy Studies/IMPACT Centre Working Papers g-334, Victoria University, Centre of Policy Studies/IMPACT Centre.

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    More about this item

    Keywords

    CGE modelling; Regional impacts; Wine; Tourism;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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