Australian Wine Exports Rise, but China Volumes Still Half of 2018 Peak

Australian wine exports rose 13% in value in the 2024–2025 fiscal year, largely driven by the reopening of the Chinese market, according to Wine Australia. 

But while China once again became Australia’s top export destination by value, export volumes to the country remain only half of what they were at their 2018 peak, highlighting the long road to full recovery.

The agency’s Export Report, covering the 12 months ending June 2025, showed total wine export value reaching AUD 2.48 billion (USD 1.64 billion), up 13% from the previous year. Export volume also grew by 3% to 639 million litres. The average free-on-board (FOB) price rose 10% to AUD 3.88 per litre.

Wine Australia attributed much of the growth to the resurgence of exports to mainland China. In the reporting period, exports to China surged 123% in value to AUD 893 million, making it Australia’s top export destination by value once again, accounting for 36.01% of total wine export revenue.

Export volume to China increased 162% year-on-year to 85 million litres, ranking third among Australia’s export markets by volume, behind the United Kingdom and the United States. The report noted that the average price per litre of exports to China rose significantly, indicating a strong presence of high-value wines in the product mix.

Peter Bailey, Manager of Market Insights at Wine Australia, said the rebound was “almost entirely driven” by the reopening of the Chinese market after Beijing removed anti-dumping tariffs on Australian bottled wine in late March 2024.

“The quarter ended June 2025 was 35 per cent smaller in value than the same quarter in the previous year,” Bailey said. “This indicates that the level of exports to mainland China may be normalising after the initial re-stocking phase.”

Bailey also pointed out that despite the recovery, export volumes to China remain only half of their 2018 peak. He added that the broader Chinese wine market has undergone a sharp contraction in recent years.

“This reflects the decline in wine consumption in the Chinese market over the last five years,” Bailey said. “The market is now only a third of the size it was in 2019,” he added citing IWSR findings. “In the past 12 months, imports from France, Italy, Spain, and Chile have all declined.”

Asia Performance

Aside from China, Australian wine also saw gains in several key Asian markets. In the 2024–25 fiscal year, export volume to Southeast Asia increased 4%, driven primarily by growth in Thailand, Singapore, and Malaysia. Since 2020, the region has achieved an average annual export volume growth rate of 6%.

In Singapore, Australian wine exports rose 4% in volume to 6.1 million litres and 14% in value to AUD 113.3 million. Exports to Thailand grew 6% to 7.8 million litres, although value declined 22% to AUD 45.3 million, suggesting a shift toward more mid- and entry-level products.

In Malaysia, wine import volume rose 10% to 2.7 million litres, while the value surged 23% to AUD 42.4 million. India saw even sharper growth, with volume up 25% to 2 million litres and value climbing 40% to AUD 9.5 million.

Similar to Thailand, there’s a trading down in South Korea. Export volume rose 26% to 4.5 million litres, but value dropped 9% to AUD 25.9 million, indicating that more lower-priced wines were entering the market.

Japan presented a contrasting trend, with declining volume but relatively stable value. Wine exports to Japan decreased 13% year-on-year to 10.7 million litres, while value remained steady at AUD 46 million, suggesting that mid- to high-end Australian wines retained their position in the market.

In Hong Kong, exports experienced a significant drop. Volume declined 25% to 7.6 million litres, while value fell sharply by 54% to AUD 126.5 million. Wine Australia attributed the decline to logistical shifts following the removal of tariffs on Australian wine in mainland China. During the tariff period, many Australian wines were routed through Hong Kong for temporary storage and re-export. Now that direct trade with China has resumed, Hong Kong’s role as a re-export hub has diminished.

Despite the decline, Hong Kong remained Australia’s largest Asian wine export market outside mainland China during the reporting period, followed by Singapore and Japan.