Australian wineries are experiencing a resurgence following China’s removal of import tariffs on Australian wine, as highlighted in the latest wine export report showing the highest levels of export volume and value in three years.
According to Wine Australia’s Export Report, Australian wine exports surged by 34% in value to reach $2.39 billion and increased by 7% in volume to 643 million litres in the 12 months ending September 2024.
Shipments to mainland China alone saw a remarkable value increase of $604 million, totaling $612 million, while the volume rose by 58 million litres to 59 million litres. Over 900 businesses exported wine to mainland China during this period, with the top 10 exporters accounting for 68% of the total value and 38% of the total volume.
Peter Bailey, Wine Australia’s Manager of Market Insights, stated, “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.” He cautioned that this increase is unlikely to alleviate the oversupply of red wine grapes in Australia’s warm inland regions.
Bailey emphasized that the initial six months of increased shipments likely reflect a restocking of Australian wine in China following a prolonged absence. “Export levels are not equivalent to retail figures, and it will take time before we understand how Chinese consumers are responding to the return of Australian wine,” he noted.
Despite the recent export growth, Bailey stressed the importance of market diversification to maintain and defend Australia’s market share in other regions. Exports to all other destinations remained stable in value at $1.78 billion but saw a 3% decline in volume, totaling 585 million litres.
The United States recorded the most significant volume decline, primarily due to a 21 million litre drop in unpackaged wine, which had previously surged in 2022 and early 2023. Meanwhile, exports to Canada stabilized in value as the decline in unpackaged wine eased, with shipments valued at $7.50 and above increasing by 28%.
In Europe, increases in exports to the United Kingdom and Belgium offset declines in Germany, Denmark, and Spain, resulting in a modest overall increase for the region.
Bailey concluded, “Aside from the growth in mainland China, ongoing declines in global wine consumption are impacting market performance, as consumers become more health-conscious and face cost-of-living pressures. Shipping delays and heightened costs due to regional conflicts further complicate the challenges for wine exporters.”
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