Ten Keywords for China’s 2024 Wine Market

The Return of Australia

On March 28, the Chinese government lifted the anti-dumping and anti-subsidy duties imposed on Australian wines, marking their return to the Chinese market after a three-year hiatus.

Following this, Australian wines quickly experienced growth that could only be described as “explosive”. From January to November 2024, China imported Australian wine valued at US $515.11 million, marking an astonishing 15,474.26% year-on-year increase. This amount represented 67.17% of the pre-tariff level of US $766.80 million during the same period in 2019. Upon the lifting of the ban, many Chinese importers rapidly resumed their Australian wine import projects.

The reopening of the Chinese market jumpstarted a race back to the mainland. With the relief from the crippling 218.4% tariff, industry associations from key wine regions launched an all-out effort to promote their products in China. 

Even before the tariff’s cancellation, South Australia made its move, hosting promotional activities at the China Food and Drinks Fair in March, the country’s largest wine and spirits exhibition. In June, New South Wales rolled out wine roadshows in Shenzhen and Shanghai, and in October, Western Australia flew a group of key Chinese wine buyers into the region for a firsthand experience.   

However, enthusiasm in the Chinese wine market was significantly lower than in 2019 and previous years. While some importers reported strong sales, others expressed disappointment, noting that Australian wines did not meet expectations in the retail market and failed to enhance the industry’s overall popularity. 

In July, when Penfolds, the most popular Australian wine in China, had its first batch arrive in the country after the removal of tariff, Lei Yumeng, General Manager of Zhejiang Xuan Yi International Trade Co., remarked: “Distributors are proactive in stocking up, but sales at the consumer level are relatively slow. Due to consumer downgrading, the sales volume of Penfolds here is only about 30% of what it was in 2019.”

Another wine merchant based in Jilin in northeastern China also noted: “There were once high hopes for Penfolds, but now there is limited response at the consumer level. The products are sitting with distributors, creating an illusion of prosperity that is only reflected in public data.”

The market remained cautious about the sales of Australian wines. Dan Siebers, co-partner at Wajiu China (part of the Wajiu Group), expressed his concerns in a previous interview: “The recent influx of Australian imports is largely disconnected from real consumption or demand. It’s primarily driven by compulsive entrepreneurs chasing the next trend.”