The New Zealand wine industry is concerned about the effects of declining sales, cost increases and cheaper, lower-quality imported wine on the industry, despite selling prices for wine having increased.
A 2024 report, released in September by the industry organisation NZ Wine, showed winemakers were concerned about the challenges which faced the industry.
The effects were also being felt in Central Otago, but it was not all bad news for the industry.
Central Otago Winegrowers Association general manager Carolyn Murray said there were challenges facing the wine industry both domestically and internationally.
Vineyard owners across the country had been impacted by rising costs, and sales both domestically and internationally had slowed in 2024, due to a tough economic climate.
Changes in vineyard ownership were possible as a result, she said.
However, Ms Murray said there was good news. Despite people drinking less overall, they were trading up and seeking higher-quality wines.
"Central Otago is well positioned to ride this out as producers of premium wines, with worldwide recognition and a strong focus on sustainability," she said.
Quartz Reef Wines owner Rudi Bauer had also noticed the shift in demand.
Sales had been slower than in the past, and there was less wine consumption overall, he said.
The changes were partly because of Covid, but also a change in consumer behaviour when it came to drinking habits.
People were also mindful of where they spent their money. As a result people were drinking less, but they were drinking better-quality wine, he said.
"So I guess this is where we come in, not only as Quartz Reef, but also as a region, because we are known for high-quality wine."
Mr Bauer also said consumers had become more environmentally conscious and more interested in where the wine came from.
Despite Central Otago being known for high-quality and sustainable wine, there was still reason for concern.
Winemakers still needed to keep an eye on consumer trends and keep on top of things, he said.
Felton Bay Wines winemaker Blair Walter said he was also aware of the trends, but so far Felton Bay Wines had been unaffected by the downturn.
Mr Walter said the business had remained the same size for 20 years and that could be part of the reason Felton Bay had not been affected.
"We’ve never made more wine than what the market can take."
A focus on quality over quantity had spared Felton Bay Wines a bit of bother, he said.
