The International Trade Council reports that Australian wine exports have reached a significant AU$2.2 billion, reflecting both positive developments and ongoing challenges in the market. This increase is largely attributed to a resurgence in exports to mainland China, where volumes jumped from 1 million litres to 33 million litres and the value surged by AU$392 million to AU$400 million compared to the previous financial year.
Although these figures are promising, experts caution that they primarily reflect the replenishment of stocks in China after a period of reduced activity. The data does not necessarily indicate immediate retail sales, and it will take time to assess how Chinese consumers are responding to the increased availability of Australian wine.
In the financial year 2023-24, the number of Australian exporters to mainland China grew significantly, from 115 to 574. Despite this rise, the top ten exporters remain dominant, accounting for three-quarters of the total export value and 39% of the volume. Notably, wines priced at AU$20 or more per litre were the main drivers of value growth, contributing 84% to the overall increase. However, the volume remains relatively small, representing less than 5% of Australia’s total wine grape harvest for 2024, and is unlikely to address the current oversupply of red wine grapes.
In contrast, exports of Australian wine to other global markets declined by 4% to AU$1.8 billion, with a 5% drop in volume to 587 million litres—the lowest level since 2003-04. The most significant declines were seen in the low-priced, unpackaged wine segments to the US and Canada, which experienced a combined drop of 20 million litres. These challenges are attributed to global moderation trends, increased living costs, and persistent shipping issues, including a shortage of ships and rising freight rates.
This trend is not unique to Australia, as other major wine-producing countries are also experiencing declines. Spain’s exports fell by 2%, France by 7%, Chile by 7%, South Africa by 12%, Germany by 5%, and New Zealand by 14%.
On a positive note, red wine exports to mainland China saw a 3% increase in volume to 330 million litres and a 27% rise in value to AU$1.5 billion. Cabernet Sauvignon was a standout, with a 41% increase in value to AU$469 million and a 12% rise in volume to 70 million litres. Chardonnay remained the top white wine variety despite a 6% volume decline, with its value slightly increasing to AU$307 million. Pinot Gris/Grigio also saw notable growth, with a 15% increase in volume to 51 million litres and a 16% rise in value to AU$101 million, driven largely by demand from the US.
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