A decade of growth
A decade of growth for Marlborough's wine industryIn the past five years Marlborough’s vineyard planted area has increased by 24 percent, to nearly 29,000 hectares, with even more growth expected in the next four years.
The Marlborough Wine Industry Growth Forecast is based on a survey of a mix of wineries, growers and industry contractors undertaken at the end of 2020. It shows that in just four years just over 5,500 hectares more vines have been planted in the region.
The new report, released today shows the Marlborough wine industry is still growing and that another 18 percent increase, or 5,150 hectares, is expected to be planted between now and 2025. The majority of those plantings are forecast to be in the Upper Wairau Valley, with the Central and Lower Wairau Valley edging out the Awatere Valley in terms of expected growth.
The report states that wineries are competing strongly for available grapes from the region’s growers and that is what is fuelling planting intentions.
“Since this reports surveys were completed, the impact of a smaller than expected harvest for the 2021 vintage is only likely to reaffirm these planting and growth intentions,” its author, Greg Dryden of Fruition Horticulture states.
What is clear from the report, is that Marlborough drives the growth forecast for the New Zealand Wine Industry and has for many years. In the last five years while Marlborough grew 24 percent, Hawke’s Bay, the country’s second largest wine region declined in vineyard plantings by 8.6 percent.
Marlborough Mayor, John Leggett acknowledges that the strength of the Marlborough wine industry has underpinned the success of Marlborough’s economy for many years.
Mayor Leggett says that “the future growth identified in this report will maintain Marlborough as the centre of New Zealand’s wine industry and as one of the leading wine regions in the world”. He sees that “collaboration will be a key to ensure that future growth is done in a managed and sustainable way.”
The report states that “Marlborough wineries will process 440,100 tonnes for vintage 2025, which will be an increase of 33 percent on what was produced in 2020. That alone, plus all the vineyard development work and ongoing servicing of this new vineyard area will mean significant job growth for the region”.
Wine Marlborough general manager Marcus Pickens describes the growth as a “testimony to the global impact of Marlborough Sauvignon Blanc.”
With further growth on the horizon, the value to the Marlborough region will be substantial he says.
A recent NZIER report showed in 2020, the wine industry injected $571 million into the Marlborough economy, and 6,088 full time jobs currently in the region were either directly or indirectly associated with the industry. Those figures do not include any seasonal roles which the industry relies on for activities such as winter pruning and winemaking.
Mr Pickens says the forecast is that by 2024/25 the wine industry will require a further 1,515 jobs to be filled to meet the forecast growth.
He admits that will be something the industry has to work on, given labour shortages and accommodation challenges currently facing the region.
“Attracting, recruiting and retaining that staff, and ensuring enough accommodation is available to our sector and others in our community, will require plenty of work,” he says. “This is something that a range of stakeholders in our industry and the community at large will have to problem solve together but are areas the wine industry here has found solutions to in the recent past.”
Working on the challenges highlighted is the next step to prepare for the opportunities outlined in the Growth Forecast and to help meet the aspirations of the Marlborough wine industry.
For more information please contact,
Marcus Pickens
Wine Marlborough General Manager
Ph: +64 3 577 9299
Mob: +64 21 831 820
Email: marcus@winemarlborough.nz
Or report author,
Greg Dryden
Fruition Horticulture
Mob: +64 27 484 3857
Email: gregdryden@fruition.net.nz
For a copy of the full report, please contact Nicci Armour, Advocacy Manager for Wine Marlborough on advocacy@winemarlborough.nz
About the Marlborough Wine Industry Growth Forecast
The report was jointly funded by Wine Marlborough Limited, New Zealand Winegrowers with funding assistance from MRC and the Marlborough District Council.
Face to face interviews of 62 Marlborough wine industry businesses were conducted using survey forms by Fruition Horticulture at the end of 2020.
The 62 businesses were selected as a statistically representative group of wine companies, grape growers and labour or machinery contractors.
Results were scaled using an industry multiplier to assess industry wide impacts and opportunities.
The survey and subsequent report by Fruition Horticulture follows on from previous work released in 2016, under the name the Marlborough Viticulture Labour Market Survey.
About Wine Marlborough Ltd
Wine Marlborough is a wholly owned subsidiary company of the Marlborough Winegrowers Association.
Established in 1992, Wine Marlborough is effectively owned by the industry with a purpose to proudly stand up for, and build, the reputation of Marlborough’s wine region.
Wine Marlborough is tasked with an organisational role to educate, grow, protect and celebrate the Marlborough wine region for the benefit of Marlborough grape growers (514 members) and wine companies (158 companies), representing 74% of New Zealand’s grape growers and 22% of New Zealand’s wine companies.
In 2020 Marlborough harvested 77.7% of the country's harvest, from 70% of the total country's producing area.