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Australian wine exports reach $2.2 billion

The value growth was driven by a surge in exports to mainland China in the last quarter of the financial year, following the removal of duties on Australian bottled wine in March 2024.

Wine Australia manager, market insights, Peter Bailey noted that the rise in exports to mainland China is still a small fraction of past peaks: “The surge in exports to mainland China towards the end of the financial year saw volume rise from 1 million litres to 33 million litres and value grow by AU$392m to AU$400m compared to last financial year,” Bailey said.

• Read more: UK overtakes China as top market for Chilean wine
  

“While the figures are very positive, they represent the restocking of Australian wine in the pipeline of a major market after a long absence and do not necessarily equate to retail sales. It will take some time before there is a clearer picture of how Chinese consumers are responding to the increased availability of Australian wine in-market,” Bailey added.

A total of 574 companies were exporting to mainland China in 2023-24, up from 115 in 2022-23. Before the duties, more than 2,000 companies were exporting to China. The top ten exporters accounted for three-quarters of the total value and 39% of the volume of exports.

Exports of wine priced at AU$20 or more per litre free on board (equating roughly to 300 Renminbi per bottle retail), were the main driver of value growth to mainland China, accounting for 84% of the growth: “The growth in value has seen mainland China return to the top export market by value,” Bailey said. “However, the volume of exports at 33 million litres is relatively small, equating to less than 5% of Australia’s wine grape harvest in 2024 and so is unlikely to make a significant impact on the current oversupply of red wine grapes, particularly in the big volume-producing warm inland regions.”

Exports to the rest of the world declined by 4% (AU$68m) to AU$1.8bn and volume decreased by 5% (33 million litres) to 587 million litres, the lowest volume since 2003-04. The decline was most significant in unpackaged exports priced under AU$1.50 per litre to the US and Canada (down a combined 20 million litres).

“Global trading conditions remain very challenging with wine consumption continuing to fall in many markets around the world due to moderation trends and cost of living pressures. There are also enduring problems in shipping, with a shortage of ships globally and freight and charter rates on the rise,” Bailey said.

Australia is not alone in facing these challenges. Wine exports have also declined from other major producers, with Spain down 2%, France 7%, Chile 7%, South Africa 12%, Germany 5% and New Zealand 14%.

Still red wine was the main beneficiary of the growth in exports to mainland China, with total red wine volume up 3% to 330 million litres and value up 27% to AU$1.5bn compared to 2022-23. Cabernet Sauvignon grew in value by 41% to AU$469m and volume by 12% to 70 million litres, with the US also contributing to the increase.

For white wine, Chardonnay remained the top variety. While volumes declined by 6% to 158 million litres, value rose slightly to AU$307m. The top performer for still white wine was Pinot Gris/Grigio, up 15% in volume to 51 million litres and 16% in value to AU$101m, a record result for the variety. The US drove the growth in Pinot Gris/Grigio exports.

• China
• Wine Australia
• Chardonnay
• Peter Bailey
• Chinese Wine Tariffs
• Australia wine exports