Western Australian Wineries Eye China’s Premium Palate

A year after China lifted its punishing tariffs on Australian wine, trade figures are once again flowing freely. Exports from Australia to China surged to AU$ 1.03 billion over the past year, now accounting for nearly 40% of the nation’s total wine export value. The surge was largely led by larger producers such as Penfolds, according to merchants who talked to us.

For these smaller, often family-run producers from regions like Margaret River and Great Southern, the path back to China has been less a stampede and more a steady recalibration. Gone are the days of high-volume shipments riding a wave of demand. In their place is a more deliberate, values-driven approach—one that aligns closely with China’s evolving wine consumer: educated, curious, and increasingly selective.

Inside WA’s Slow-Burn Re-entry

Vino Joy News recently joined the week-long Western Australia Wine Buyer Tour, an immersive journey through the vineyards of Margaret River and Great Southern. Organised by Wines of Western Australia, the tour brought together buyers, media, and local winemakers to explore the region’s next chapter in the post-tariff China market.

While data might suggest a dramatic resurgence for Australian wines into China, most WA wineries tell a quieter story. Re-entry into China, for many, remains tentative.

Take Voyager Estate, for example. It still has an importer in China, but no new orders have been placed since 2024, with the importer choosing to focus on South Australian wines instead, the winery told us on the trip. Others, like Hay Shed Hill Wines, have turned their gaze elsewhere—to the U.S., Japan, the U.K., and Denmark. “I lost all my customers as soon as the tariffs were introduced,” said owner Michael Kerrigan. “I’d have to rebuild all those relationships from scratch.”

It’s a common refrain. During the week-long tour, many wineries told similar stories. Some cited challenges with market access, product registration, and intellectual property—issues that often fall beyond the scope of small-scale producers. One winery owner shared that limited capacity, a lean team, and mounting cost pressures make it nearly impossible to invest in export markets at the scale required to compete with larger South Australian producers.

A Structural Gap

These challenges stem in part from the underlying realities of the Western Australian wine industry. Unlike South Australia’s industrial-scale operations, WA’s wineries are generally small in scale, domestically focused, and far less export-driven. The region accounts for just 7% of Australia’s total vineyard area, spread across around 350 wineries—many of which are family-run or artisanal in focus.

Unlike South Australia’s industrial-scale operations, WA’s wineries are generally small in scale, domestically focused, and far less export-driven. The region accounts for just 7% of Australia’s total vineyard area, spread across around 350 wineries—many of which are family-run or artisanal in focus.

In 2024, WA exported 4.9 million litres worth AU$ 42.2 million, which represents only 13–14% of its total wine sales. The majority of its output is consumed within Australia, and the leap into international markets, particularly one as competitive as China, requires significant strategic pivoting.

Brand recognition remains another key hurdle. While Margaret River carries some weight among Chinese consumers and accounted for 56% of WA’s wine exports between January 2024 and March 2025, Great Southern— which covers the regional climate ranges from the coastal, maritime subregions of Albany and Denmark to the inland, continental subregions of Mount Barker, Porongurup and Frankland River —remains largely under the radar.

Then there’s pricing. At several trade tastings and masterclasses attended by Vino Joy News, the quality of WA wines stood out—but so did the price tags. Many were retailing above AU$ 50, with some approaching AU$ 100. Meanwhile, a couple Chinese buyers expressed preference for wines in the AU$ 20 range, highlighting a clear gap between WA’s boutique positioning and prevailing market price sensitivity.

David vs Goliath—And Why That Might Be a Good Thing

Yet it’s exactly this boutique character—this quiet contrast to volume-driven giants—that could give Western Australia a distinctive edge…

WA producers are less beholden to international markets and more open to collaboration. They’re agile, unburdened by volume targets, and willing to co-develop new strategies with their import partners—especially in China.

At a Great Southern tasting, Guy Lyons of Forest Hill Vineyard spoke candidly about his openness to small orders: “Our production is limited, and our main market is domestic. We don’t need to ship everything to China.” The winery recently shipped five pallets to a Chinese e-commerce client—a small but promising step.

Flexibility is a recurring theme. Minimum orders? Rarely required. Willingness to support trial shipments? Absolutely. For importers, especially those navigating a cautious market, this adaptability is invaluable.

Strong Partners, Stronger Future

With limited China market experience, many WA wineries are looking to experienced local partners to help shape their strategy. “We’re eager to explore exports,” said Colleen Delpech, owner of Delpeche Wines. “We don’t have a formal plan, but if we find an interested buyer, we’ll go all-in to support them.”

Indeed, those wineries that have already partnered with strong Asian importers speak with far more confidence. Several praised their Chinese partners, such as Plantagenet Wines’ Managing Director Tom Wisdom, who highlighted their collaboration with Luxee Pty Ltd in Guangzhou. “They’re incredibly well-connected and respected in the industry,” he said.

Premium, Not Price War

WA wines rarely compete on price—and that’s by design. What sets many Western Australian wineries apart is their clear sense of purpose: reaching genuine wine lovers rather than chasing volume for its own sake. This aligns neatly with the preferences of China’s growing cohort of sophisticated drinkers.

 “We’ve never been a volume-driven exporter,” said Lloyd Constantine, General Manager of Brand and Distribution at Vasse Felix. “We prefer to be present in the right places—fine wine retailers and restaurants—where our vision and values align.”

At Duke’s Vineyard, owner and winemaker Ben Cane echoed the sentiment. The winery recently completed a shipment to China—now its second-largest export market after Singapore—with a focus on fine dining and premium private client channels. “We want to be part of the experience,” Cane said. “Not just a product on a shelf.”

Even as many Chinese consumers still favour familiar Australian names, the tide may be slowly turning. In 2024, WA exported 1 million litres worth AU$ 10.4 million to mainland China, its second biggest export market behind the UK. While modest compared to the AU$ 1.03 billion national total, that figure represents nearly 25% of WA’s total export value —a clear sign that Chinese interest in high-quality, small-batch wines is growing.

WA wineries aren’t just selling wine—they’re selling a sense of place. As one owner remarked during a masterclass: “We’d rather export a little to every country than rely on just one. We don’t want our wines to be used as gifts—we want them to be enjoyed by real wine lovers. Even if you’re not travelling, a glass of Margaret River wine can transport your spirit to Western Australia.”