China Lifts Australian Wine Exports But Global Challenges Loom

Australian wine exports jumped to AU$2.55 billion in 2024, buoyed by a strong recovery in China, but Wine Australia warned that uneven growth and global headwinds could threaten the sustainability of the rebound.

In the 12 months ending December 2024, wine exports increased 34% in value to AU$2.55 billion and 7% in volume to 649 million liters, according to Wine Australia’s latest Export Report. The sharp rise in value was largely driven by a surge in shipments to mainland China from April to December, following the removal of tariffs on Australian bottled wine in late March.

During that nine-month period, 83 million liters of wine valued at AU$902 million were exported to China. The average export value to the Chinese market reached AU$10.79 per liter, helping push the overall packaged wine export value to a record AU$9.35 per liter.

A delegation of Chinese wine buyers visited Western Australia’s Margaret River and Great Southern wine region in October following the tariff lift (pic: Ovis Creative)

China’s Recovery, but Uncertain Future

Wine Australia’s Market Insights Manager, Peter Bailey, described the performance in China as “very positive,” though he cautioned that the market remains volatile.

“While there has been month-to-month volatility in shipments since the removal of tariffs, the overall performance has been strong,” Bailey said. “However, Chinese wine consumption is much lower than before the tariffs were imposed, so it will take time to determine the ‘new normal’ for exports to China once the initial restocking phase is over.

“Continued growth is not guaranteed, and market diversification remains crucial in an increasingly challenging global business environment.”

The surge in exports to China has also influenced Australia’s overall wine export composition, with red wines making up 93% of shipments to the market. As a result, red and rosé wines increased their total export share from 54% to 60%, while white wine’s share fell from 46% to 40%. The top three red varieties—Shiraz, Cabernet Sauvignon, and Merlot—all saw export volumes rise, whereas leading white varieties—Chardonnay, Pinot Gris/Grigio, and Sauvignon Blanc—declined.

Global Challenges and Hong Kong’s Sharp Drop

Beyond China, Australian wine exports faced significant challenges, as global alcohol consumption remains under pressure due to health and wellness trends, rising living costs, and oversupply in the market.

Exports to the rest of the world fell 13% in value to AU$1.64 billion and 7% in volume to 565 million liters in the year ending December 2024.

Hong Kong saw the steepest decline, with exports dropping AU$125 million to AU$171 million. This sharp drop follows a surge in shipments at the end of 2023, as some exporters anticipated the removal of China’s import tariffs in early 2024.

North America also saw declines, with exports to the region falling 5% to AU$482 million, largely due to weaker sales in the United States. Growth in Canada helped offset some of the losses.

In Europe, exports declined 4% to AU$521 million, with key markets such as the UK, Germany, Denmark, and the Netherlands posting declines. However, exports to Sweden, Belgium, Finland, Ireland, and Poland increased.

Elsewhere in Asia, most markets saw declines in 2024, though the long-term trend remained positive, with the region (excluding mainland China) recording a 4% annual growth rate over the past five years.

Top Export Destinations

By value, the top five export destinations in 2024 were: