South Australian Wine Exports to China Recover to Over 80% of 2020 Peak

South Australia’s wine exports to China have bounced back strongly, reaching AUD 790 million in the 12 months to February 2025 — more than 80% of the historic 2020 peak — according to local government official. Wine has now become the state’s third-largest export commodity to China.

Joe Szakacs, South Australia’s Minister for Trade and Investment, said local producers had swiftly recovered much of their lost ground since tariffs were lifted, reflecting the resilience of the sector.

“It’s been 12 months since wine exports to China resumed,” said Szakacs “Since then, the latest data shows that local wine producers’ exports have reached more than 80 per cent of the all-time highs in 2020,” he said during a five-day visit to China to promote South Australian wines this month. 

South Australia, which accounts for 50% of Australia’s total wine production and more than 80% of its premium wine output, was one of the most active Australian regions in China prior to the 2021 imposition of anti-dumping and countervailing duties. Its wines, the state’s third largest export to China, had long appealed to Chinese consumers, with iconic sub-regions such as Barossa Valley and Clare Valley — along with leading brands — making significant investments in the market.

Signs of recovery have already been felt by some South Australian producers in 2024. Su Huaici, General Manager for China at Accolade Wines, revealed to us that consumer interest in the brand has been strong since Australian wines returned to China. Accolade products have re-entered mainstream supermarkets, instant delivery platforms, e-commerce channels, and major hotel chains.

However, Su also noted that: “Since 2024, our traditional distributor channels have shrunk significantly. We believe this reflects the natural transition of the Chinese market from an emerging to a more mature phase. Going forward, Accolade will prioritise digitally driven consumer engagement and direct-to-consumer sales initiatives.”

Li Wei, Founder and President of Auswan Creek, another major South Australian exporter, said the company’s exports to China had recovered to 60–70% of 2020 levels in the year to February 2025. He also acknowledged that the market landscape had evolved significantly.

“The customer mix has shifted,” Li replied when interviewed by Vino Joy News. “Traditional business channel clients now account for a smaller share, while e-commerce clients are growing. At the same time, more importers are purchasing directly from our wineries. Previously, we relied more on pre-positioning products in China and had relatively little direct collaboration with importers.”

Zhang Chenyu, Head of China for GNT Boutique Wines, added that while the company’s overall recovery had not yet reached 80% of 2020 levels, sales of major brands were performing particularly well. She noted that GNT is undergoing a transformation, expanding its presence across online and restaurant channels to complement its traditional wholesale network.

The sustained growth of South Australian wine exports to China has been closely tied to the performance of major brands. Penfolds — the most recognised imported wine brand in China — achieved strong growth during the 2024 and 2025 Chinese New Year seasons, helping drive a 50.4% surge in net sales revenue for the first half of the 2025 fiscal year, to AUD 386 million.

The success of Penfolds highlights an important trend: once a major brand wins the favour of Chinese consumers, it enjoys a significant advantage in driving sustained sales momentum.