AUSTRALIA – Australian wine exports experienced a notable increase in value, rising by 17 percent to reach AU$2.2 billion (US$1.44B) in the year ending 30 June 2024, primarily due to a significant surge in exports to China.
According to data from Wine Australia, export volumes remained relatively steady at 619 million litres, a slight decline of 0.2 percent compared to the previous year.
Peter Bailey, manager for market insights at Wine Australia, highlighted the dramatic growth in exports to mainland China towards the end of the financial year.
Volume exports to China soared from one million litres to 33 million litres, and their value grew by AU$392 million (US$244.9M) to AU$400 million (US$261M), compared to the previous financial year.
The surge in exports to China contributed significantly to the overall growth in value, although the numbers are still considerably lower than before the imposition of tariffs.
In the 2023-24 financial year, 574 companies exported to mainland China, a significant increase from 115 in the previous year. However, this figure remains well below the over 2,000 companies exporting to China before the duties were implemented.
In 2023-24, the top ten exporters by value accounted for three-quarters of the total value and 39 percent of the volume of exports to the Chinese market.
In March, China lifted the tariffs on Australian wine, which had been in place for three years and had impacted several Australian winemaking regions. Despite the recent surge, the 33 million litres exported this year is still far from the 176 million litres exported to China in 2018.
Excluding mainland China, the international value of Australian wine exports declined by 4 percent to AU$1.8 billion (US$1.17B), with volumes falling by 5 percent to 587 million litres.
However, there was growth in the sales value of higher-priced wines, those above AU$20 (US$13.05) per litre, which increased by AU$344 million.
The European Union remained Australia’s largest export market by volume, but it saw a 2 percent decline in volume to 306 million litres and a 5 percent drop in value to AU$529 million (US$345.25M).
The United States also experienced a decline, with a 4 percent drop in value to AU$505 million (US$39.7M) and a 9 percent decrease in volume to 192 million litres.
Wine Australia General Manager Paul Turale said: “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.”
Turale emphasized the importance of exploring emerging markets while defending the current share in established markets to achieve market diversification and ensure sustainable demand for Australian wine.
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