Australian wine exports on the up – but conditions remain difficult

Wine Australia has released its Wine Export Report for the 12 months ended December 2024, which show value and volume increases in Australian wine exports, but also highlight the tough conditions in many key global markets.

As many producers and experts predicted, the removal of China’s tariffs on its imported Australian wine saw high levels of shipments to mainland China between April and December 2024.

In those nine months, 83 million litres of wine, worth $902m, were exported to mainland China. The average value of exports to mainland China for the 12 months ended December 2024 was $10.79 per litre, contributing to a 24 per cent increase in the average value of total packaged exports to $9.35 per litre – a record value.  

Peter Bailey, Manager, Market Insights, Wine Australia said: “While there has been month-to-month volatility in the value of shipments to mainland China in the period since tariffs were removed, the performance is nonetheless very positive.

“However, Chinese wine consumption is much lower than it was before the import tariffs were imposed, so it will take more time before it becomes clear what the ‘new normal’ level of exports to mainland China will be, after this initial re-stocking period.

“Continued growth is not assured, and it is still important to focus on market diversification in a challenging global business environment.”

The report highlights that outside of the mainland China market, other established wine markets are declining as moderation trends increase and the rising cost of living continues.

The report states that this “has contributed to a global oversupply of wine and increased competition in already strained supply chains”.

Australian wine exports to the rest of the world declined by 13 per cent in value to $1.64bn and seven per cent in volume to 565 million litres during the 12 months to December 2024.

Exports to North America fell by five per cent to $482m, which was driven by declines in the US, although these are slightly offset by growth in exports to Canada.

Europe saw mixed results, with the overall value of shipments declining by four per cent to $521m, led by the UK, Germany, Denmark and the Netherlands, while exports to Sweden, Belgium, Finland, Ireland, and Poland increased in value.  

Outside of mainland China, most other Asian destinations declined in exports during the 12 months to December 2024, although the long-term growth rate in value for the region (excluding mainland China) was still positive at four per cent per year in the last five years.

The top five destinations by value were:

• Mainland China (up $898m to $907m)
• UK (down $9m to $352m)
• US (down $38m to $325m)
• Hong Kong (down $125m to $171m), and
• Canada (up $13m to $156m).

The top five destinations by volume were:

• UK (down 8 million litres to 212 million litres)
• US (down 28 million litres to 106 million litres)
• Mainland China (up 83 million litres to 84 million litres)
• Canada (down 7 million litres to 66 million litres), and
• New Zealand (down 2 million litres to 27 million litres).

The increase in exports to China saw red wine increase its overall share of the export market, with red and rosé wine increasing export share from 54 per cent to 60 per cent, while white wine fell from 46 per cent share to 40 per cent.

The top three varieties in red wines – Shiraz, Cabernet Sauvignon, and Merlot – all increased in volume shipped, while the top three varieties in white wines – Chardonnay, Pinot Gris/Grigio, and Sauvignon Blanc – all declined.

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