Biggest trends

Sauvignon Blanc dominance & market rebalancing

Sauvignon Blanc remains the leading variety in New Zealand’s wine sector, accounting for the majority of export sales. While 2024 saw lower yields, the quality of the vintage was exceptional, contributing to strong global demand. Oversupply continues to pressure pricing, though lower 2024 yields may aid rebalancing. Margins remain tight, with stability expected over time.

Contracted supply providing market security

Vineyards with secure contracted supply agreements continue to be in higher demand, providing vendors with a stronger market position. The past reliance on uncontracted vineyards to meet surging demand has diminished, with buyers now prioritising supply security. Counterparty strength, contract tenure, and pricing terms remain key investment considerations for those looking to enter the market or expand their holdings.

Vine replacement & investment in efficiency

With many vineyards approaching the 30-year mark, vine replacement and redevelopment have become key strategies for maintaining productivity and profitability. Growers are investing in replanting programs to improve yield efficiency and align with evolving market preferences. Innovations in vine spacing and varietal selection are providing long-term advantages, especially as climate variability continues to challenge traditional growing methods.

Outlook for the next 12 months

Export market stabilization & demand growth

Following a period of overordering and stockpiling, export volumes are beginning to stabilize, particularly in key markets such as the United States and the United Kingdom. Consumer demand is expected to balance out the supply chain, supporting steady growth for New Zealand wine exports. Regulatory adjustments and economic conditions in global markets will continue to influence purchasing trends and pricing structures.

Vineyard investment attracting diverse buyers

NZ’s viticulture sector remains attractive to investors due to its scalable and structured nature. Contract management opportunities and a shift in pricing dynamics are allowing both small-scale and corporate investors to explore acquisitions. While fruit price adjustments have influenced short-term returns, long-term land scarcity continues to underpin investment value, making premium vineyard assets particularly desirable.

Lifestyle buyers maintaining market presence

The $2.5M to $5.0M price range continues to attract lifestyle buyers seeking passive income alongside vineyard ownership. This segment of the market is expected to remain active as buyers seek alternative investment options with tangible asset backing.