Australian wine exports grew by 34% in value to $2.39 billion in the 12 months ending September 2024, driven largely by the re-entry of Australian wines into Mainland China following the removal of import duties in March. According to Wine Australia’s Export Report, volume exports also rose by 7%, reaching 643 million litres.
This marks the highest level of wine exports in both value and volume since August 2021. The resurgence in exports was led by premium wines returning to the Chinese market, with the value of shipments to China soaring by $604 million to $612 million. Volume shipments also increased by 58 million litres, reaching 59 million litres.
Peter Bailey, Wine Australia’s market insights manager, emphasized that the premium price of Australian wine in China contributed significantly to the value increase, noting, “While the export figures to mainland China are very positive, the impact on total export value is much larger than volume due to the premium price point of most wine entering the market.”
While the numbers reflect a strong return to the Chinese market, Bailey cautioned that these figures do not necessarily translate to consumer sales. “It’s important to note that shipments in these first six months are likely to reflect restocking efforts after a long absence,” he said. “It will take time before we can gauge how Chinese consumers are reacting to Australian wine being back in the market.”
A total of 927 businesses exported wine to China during this period, with the top 10 exporters accounting for 68% of the total value and 38% of the volume.
Despite the growth in China, Bailey warned against over-reliance on this market, stressing the need for diversification. “It is increasingly important to defend our share in other wine markets,” he said.
In contrast to the success in China, exports to other destinations remained stable in value at $1.78 billion, while volume declined by 3% to 585 million litres. Shipments to the US saw a significant drop, with volume falling by 21 million litres to 113 million litres, largely due to a reduction in unpackaged wine exports.
Exports to Canada stabilized, and higher-value wine exports increased by 28%. Europe presented a mixed picture, with growth in the UK and Belgium offsetting declines in Germany, Denmark, and Spain, resulting in a slight overall increase.
Global wine exports also saw challenges, with major wine-exporting countries like Italy, Spain, France, and South Africa reporting declines. Factors such as cost-of-living pressures, moderation trends, and logistical challenges due to regional conflicts are contributing to difficulties for wine exporters worldwide, according to Trade Data Monitor.
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