Wine Australia’s latest Export Report has shown a significant rise in Australian wine exports in 2024, increasing by 34 per cent in value to $2.55 billion and by 7 per cent in volume to 649 million litres across the period from 1 January 2024-31 December 2024.
The increase in value and volume is due largely to the re-entry of Australian wine exports to mainland China, following the removal of import duties on Australian bottled wine in late March 2024. This was immediately visible in previous reports, and has resulted in 83 million litres of wine exported to mainland China over the past nine months, to a value of $902 million.
The average value of exports to mainland China for 2024 was $10.79 per litre, bringing the average value of total packaged exports up 24 per cent to $9.35 per litre – a record value.
Wine Australia market insights manager, Peter Bailey, said 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 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.”
Although the reopening of mainland China contributed heavily to the Australian wine industry this year, global alcohol consumption overall is declining, impacting export results in other markets.
Health and wellness concerns and the rising cost of living are contributing to a global surplus of wine and increased competition in already strained supply chains. Australian wine exports to the rest of the world declined by 13 per cent in value to $1.64 billion, and 7 per cent in volume to 565 million litres during 2024.
A large increase in shipments to Hong Kong at the end of 2023 was a large factor, as Australian exporters may have anticipated the removal of import tariffs to mainland China in early 2024. A decline in unpackaged wine exports to the United States after a period of heightened exports further contributed.
Exports to North America declined by 5 per cent to $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 4 per cent to $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 2024, although the long-term growth rate in value for the region was still positive, at 4 per cent per year in the last 5 years.
The top five destinations by value were:
- Mainland China (up $898 million to $907 million)
- UK (down $9 million to $352 million)
- US (down $38 million to $325 million)
- Hong Kong (down $125 million to $171 million), and
- Canada (up $13 million to $156 million).
The top five destinations by volume were:
- UK (down 8 million litres to 212 million litres)
- US (down 28 million litres to 106 million litres)
- Mainland China (up 83 million litres to 84 million litres)
- Canada (down 7 million litres to 66 million litres), and
- New Zealand (down 2 million litres to 27 million litres).
The increase in exports to mainland China has also impacted on red wine’s share of exports, as 93 per cent of exports to China are red. In 2024 the volume share of red and rosé wine increased from 54 per cent to 60 per cent.
Meanwhile, white wine lost share – moving from 46 to 40 per cent of volume, as Australia’s top white wine destinations declined in exports.
Consequently, the top three varieties in red wines – Shiraz, Cabernet Sauvignon, and Merlot – all increased in volume shipped, while the top three varieties in white wines – Chardonnay, Pinot Gris/Grigio, and Sauvignon Blanc – all declined.
