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.
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.
The 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.”
“China return boosts Australia wine sales but total volumes dip” was originally created and published by Just Drinks, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
