Cheers to some good news for the Australian wine industry

Australian wine exports increased by 41% in value to $2.64 billion and by 6% cent in volume to 647 million litres over the past 12 months, Wine Australia’s Export Report released today revealed. 

The average value of exports increased by 33% per litre, the highest average value in almost two decades.

Australian wine exports to mainland China exceeded $1 billion one year after the removal of tariffs. 

“The increase in average value is mainly due to the elevated level of premium wine shipments to mainland China, after tariffs on Australian bottled wine were removed at the end of March 2024," said Peter Bailey, manager for market insights for Wine Australia. 

"The 12 months ended March 2025 represented a full year’s worth of exports to mainland China since the tariffs were eliminated - resulting in 96 million litres of exports to the market, valued at $1.03 billion.

“While the total value of shipments to mainland China is now at a similar level to the years immediately before tariffs on Australian bottled wine came into force, volume in the last 12 months is 23% smaller than the 5-year average between 2016 and 2020 and 44% below the peak in 2018.

“Additionally, the average value of packaged wine shipped to mainland China was $23.00 per litre, much higher than any other major export market. The lower volume and high average value demonstrate that mainland China is a premium market for Australian wine and will therefore not solve oversupply issues in Australia.”

Exports to the rest of the world (excluding mainland China) declined by 13% to $1.62 billion and 9%in volume to 551 million litres, adding to the wine supply glut. 

This was the lowest value to the rest of the world in 10 years and lowest volume in over 20 years. While the decline in value was mainly driven by Hong Kong as sales transitioned to mainland China, the volume drop was due to the declines in exports key destinations such as the United Kingdom, United States, and Canada.

The global wine market is facing considerable headwinds which are impacting on results for other markets aside from mainland China and are unlikely to be resolved in the near-term, Wine Australia said. 

While there has been a long-term trend of consumers drinking less alcohol due to health and wellness concerns, more recent cost-of-living pressures could continue or potentially get worse in certain markets, given the economic and political turmoil taking place globally. 

Escalating trade wars have the potential to increase prices, complicate supply chains, and rapidly change the competitive landscape in key wine markets in the near-term.

The top five destinations by value were:

• Mainland China (up $1.01 billion to $1.03 billion)
• UK (down $12 million to $353 million)
• US (down $32 million to $323 million)
• Hong Kong (down $136 million to $154 million), and
• Canada (up $3.8 million to $151 million).

For more info see Wine Australia’s Export Report and Wine Australia’s Export Dashboard.