Shipments to China lift Australian wine exports to three-year high

By James Bayley

Published: 22 October, 2024

Australian wine exports surged in the 12 months to September 2024, with value rising 34% to AU$2.39bn and volume up 7% to 643 million litres, according to Wine Australia’s latest report. These figures represent the highest levels since August 2021, mainly driven by a strong return to the Chinese market after it removed import duties on Australian bottled wine in late March 2024.

Exports to mainland China saw a significant boost, with value increasing by AU$604m to AU$612m, and volume rising from 58 million litres to 59 million litres. Peter Bailey, manager of market insights at Wine Australia, said: “Although the September quarter was smaller than the June quarter in both volume and value, it was still significant – totalling 27 million litres worth AU£214m.”

Of the 927 businesses shipping to China, the top ten by value accounted for 68% of total revenue and 38% of the volume. Bailey highlighted that while the rise in exports to China is encouraging, the premium pricing of many shipments means the impact on total export volumes remains limited. He added: “It’s important to note that shipments in these first six months are likely to be characteristic of re-stocking Australian wine after a long absence. Export levels are not equivalent to retail figures, and it will take time before it is evident how Chinese consumers are reacting to having Australian wine back in market.”

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Outside China, total export value was steady at AU$1.78bn, though volume slipped 3% to 585 million litres. The biggest drop came from the US, where unpackaged wine shipments fell after a spike in 2022 and early 2023. Exports to Canada stabilised in value, bolstered by a 28% rise in higher-value wine, which offset declines in bulk shipments.

In Europe, stronger sales to the UK and Belgium helped counterbalance weaker performance in Germany, Denmark and Spain, resulting in a small net gain for the region. Bailey stressed broader market pressures: “Shipping delays and increased shipping costs due to regional conflicts are also making it harder for wine exporters to get their products into market.”

Global trends also weighed on exports, with Trade Data Monitor indicating a 3% drop in worldwide wine shipments from the top 10 exporters as of June 2024. Major producers including Italy, Spain, France and New Zealand reported declining figures.

For Australian exporters, the top five destinations by value were mainland China (up AU$604m to AU$612m), the UK (up AU$9m to AU$362m), the US (down AU$25m to AU$341m), Hong Kong (up AU$65m to AU$270m), and Canada (down AU$0.08m to AU$147m). By volume, the UK led with 222 million litres, followed by the US at 113 million litres, Canada at 68 million litres, China at 59 million litres and New Zealand at 26 million litres.

Still red wine exports climbed 16% in volume to 356 million litres, with value jumping 52% to AU$1.74bn, largely due to robust demand from China. Shiraz was the standout, up 20% to 159 million litres. Exports of Cabernet Sauvignon and Merlot also posted gains.

In contrast, still white wine exports slipped 5% to 259 million litres, while value rose slightly by 0.4% to AU$549m. Drops in shipments to the US, New Zealand and Canada were partially offset by stronger sales in the UK and China. Chardonnay remained the leading white variety, despite a 3% decline to 143 million litres.

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