AUSTRALIA | A strong return to China has offset declines in other markets for Australian wine exports.
In the 12 months that ended December 2024, Australian wine exports increased by 34 percent in value to $2.55 billion and by Seven percent in volume to 649 million litres, according to Wine Australia’s Export Report.
The increase in value was a result of high levels of shipments to mainland China between April and December 2024, after tariffs on Australian bottled wine were removed at the end of March 2024. In those nine months, 83 million litres of wine, worth AUD $902 million, have been exported to mainland China. The average value of exports to mainland China for the 12 months ended December 2024 was AUD $10.79 per litre, contributing to a 24 per cent increase in the average value of total packaged exports to AUD $9.35 per litre – a record value.
Peter Bailey, Manager of Market Insights at Wine Australia, said that while there has been month-to-month volatility in the value of shipments to mainland China in the period since tariffs were removed, the performance is nonetheless very positive.
“However, Chinese wine consumption is much lower than it was before the import tariffs were imposed, so it will take more time before it becomes clear what the ‘new normal’ level of exports to mainland China will be, after this initial re-stocking period,” said Bailey.
“Continued growth is not assured, and it is still important to focus on market diversification in a challenging global business environment.”
Outside of the unique circumstances relating to exports to mainland China, global alcohol consumption is facing numerous headwinds, and this is impacting the results to other markets. In many established wine markets consumption is declining due to health and wellness concerns and the rising cost of living. This has contributed to a global oversupply of wine and increased competition in already strained supply chains. Australian wine exports to the rest of the world declined by 13 percent in value to $1.64 billion and seven percent in volume to 565 million litres during the 12 months to December 2024.
The decline in value was largely driven by Hong Kong, after a large increase in shipments to this destination at the end of 2023 likely driven by some Australian exporters anticipating the removal of import tariffs in mainland China in early 2024. A decline in unpackaged wine exports to the United States after a period of heightened exports further contributed to the volume decline.
Exports to North America declined by five percent to AUD $482 million, driven by the United States, with growth in exports to Canada offsetting some of the decline.
There were mixed results by destination in Europe. The value of shipments to the region declined by four percent to AUD $521 million, with exports to the United Kingdom, Germany, Denmark, and the Netherlands declining. Meanwhile, exports to Sweden, Belgium, Finland, Ireland, and Poland increased in value.
Outside of mainland China, most other Asian destinations declined in exports during the 12 months to December 2024, although the long-term growth rate in value for the region (excluding mainland China) was still positive at four percent per year in the last five years.
More news here.
