Demand for cider in Australia has doubled over the past five years, with the local industry now worth $306 million a year.

A study by business analysts IBIS World has found 160 boutique cider makers have sprung up around Australia, competing with Fosters and Lion brewers, who are the large players.

The industry can use apples that are rejected by supermarkets.

Mark Bourne, a winemaker in the Southern Highlands of NSW, has diversified to cider making in the winery, and says the new growth area will be exports to Asia.

"The orders that have come through in the past few months for cider for the Asian market export, are the same size as Australian production now.

"And even recently, there's some trials being run on using lychees and making lychee cider as well."

Cider's predicted to continue growing at 10 per cent a year for the next five years, but IBISWorld analysts say it will face increasing competition from imports.