Australian wine exports grew by 34 per cent in value to $2.55 billion and 7 per cent in volume to 649 million litres in the 12 months to December 2024, according to Wine Australia’s Export Report released in late January.
The increase in value was driven by strong shipments to mainland China between April and December 2024, following the removal of tariffs on Australian bottled wine at the end of March 2024. During this period, 83 million litres of wine, valued at $902 million, were exported to China.
The average export value to mainland China for the 12 months to December 2024 was $10.79 per litre, contributing to a 24 per cent rise in the average value of total packaged exports to a record $9.35 per litre.
“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,” said Peter Bailey, manager, Market Insights, Wine Australia.
“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.”
Global alcohol consumption is facing challenges, impacting Australian wine exports to markets outside mainland China. In many established wine markets, declining consumption due to health concerns and the rising cost of living has contributed to a global oversupply of wine and increased competition in strained supply chains. Australian wine exports to the rest of the world fell by 13 per cent in value to $1.64 billion and 7 per cent in volume to 565 million litres in the 12 months to December 2024.
The drop in value was mainly driven by Hong Kong, following a surge in shipments at the end of 2023, likely due to some exporters anticipating the removal of import tariffs in mainland China in early 2024.
A reduction in unpackaged wine exports to the United States also contributed to the decline in volume.
Exports to North America fell by five per cent to $482 million, driven by a decline in shipments to the United States, though growth in exports to Canada partially offset the drop.
In Europe, results were mixed. The value of shipments to the region decreased by four per cent to $521 million, with declines in exports to the United Kingdom, Germany, Denmark, and the Netherlands. However, exports to Sweden, Belgium, Finland, Ireland, and Poland saw value increases.
Most other Asian markets, outside of mainland China, experienced declines in exports during the 12 months to December 2024. Despite this, the long-term growth rate for the region (excluding mainland China) remained positive at four per cent per year over the past five years.
The top five destinations by value were:
- Mainland China (up $898 million to $907 million)
- UK (down $9 million to $352 million)
- US (down $38 million to $325 million)
- Hong Kong (down $125 million to $171 million), and
- Canada (up $13 million to $156 million)
- Meanwhile, 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 rise in exports to mainland China has also affected the share of red wine in total exports, as 93 per cent of shipments to China are red. In the 12 months to December 2024, the volume share of red and rosé wines increased from 54 per cent to 60 per cent.
Meanwhile, white wine’s share decreased from 46 per cent to 40 per cent, as exports to Australia’s main white wine markets declined. As a result, the top three red wine varieties, Shiraz, Cabernet Sauvignon, and Merlot, all saw increased volumes, while the top three white wine varieties, Chardonnay, Pinot Gris/Grigio, and Sauvignon Blanc, all saw declines in volume.
The next year of wine export is expected to experience continued growth on the back of several of these market factors, causing optimism in
the market.