International sales of Australian wine rose in the year to the end of June thanks to a “surge in exports” to China.
The value of Australian wine exports was up 17% at A$2.2bn ($1.43bn), according to data from trade body Wine Australia.
Go deeper with GlobalData
However, falling US and EU volumes saw total shipments decline by 0.2% to 619 million litres.
“The surge in exports to mainland China towards the end of the financial year saw volume rise from one million litres to 33 million litres and value grow by A$392m to A$400m compared to last financial year,” Peter Bailey, manager for market insights at Wine Australia, said.
In March, China lifted tariffs on Australian wine following three years of taxes that impacted several Australian winemaking regions.
The 33 million litre “surge” is far off from a recovery, as in 2018 Australia exported 176 million litres of wine to China.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe international value of exports, excluding mainland China, declined by 4% to A$1.8bn, while volumes fell by 5% to 587 million litres.
The sales value of exports of higher-priced wines – those above A$20 or more per litre – grew by A$344m.
Wine Australia notes that over 90% of the value growth of wines priced A$20 and above per litre came from exports to mainland China.
“The number of businesses exporting grew from 1,221 to 1,496 with most of the increase in businesses exporting to mainland China. There were 574 exporters to mainland China, of which 523 commenced exporting in 2023–24,” Wine Australia reported.
While the EU remained Australia’s largest export market by volume, it saw volume declines of 2% to 306 million litres, while value dropped by 5% to A$529m.
The US experienced a 4% drop in value to A$505m and volume decreased to 192 million litres, down 9%.
“We welcome recent results in mainland China but must confront the fact that sales to the majority of Australia’s traditional markets continue to decline, consistent with global alcohol and wine consumption trends, cost of living pressures and wider economic uncertainty,” Wine Australia GM Paul Turale said.
“There are emerging markets offering opportunity that we will continue to cultivate, but we must also defend our current share in established markets to deliver market diversification and in turn a more sustainable demand position.”
