A strong rebound in demand from mainland China has led to strong growth in Australian wine exports, with total export value surging 34% year-on-year to US$1.62 billion in 2024, according to data from Wine Australia.
Mainland China lifted tariffs on Australian bottled wine at the end of March 2024, and for the next 9 months, 83 million liters of Australian wine valued at A$902 million (US$572 million) were shipped to the market, making it the primary driver of growth. Exports to China now accounted for 35.6% of total exports by value. A year ago, this amount was negligible due to the tariff.
The market rebound has also reshaped the composition of Australian wine exports. Red wine now accounts for 93% of Australian wine shipments to China, increasing its share of total exports from 54% to 60% in volume in 2024. Meanwhile, white wine lost market share from 46% to 40%.
As a result, Australia’s top red wine varietals like Shiraz, Cabernet Sauvignon and Merlot saw increased export volumes, while leading white varieties like Chardonnay, Pinot Gris/Grigio and Sauvignon Blanc declined.
While export to China is booming, Australian wine exports to the rest of the world declined by 13% in value terms. The Chinese market is now a key growth driver for Treasury Wine Estates (TWE), a leading wine producer in Australia. It capitalises on the growing popularity of its luxury Penfolds portfolio in this market.
Overall, global alcoholic drink consumption has declined 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.
