Australian Wine Exports Continue to Rebound After Tariffs Lifted
Despite the challenges facing the global wine industry, Australian wine exports have continued to show resilience in the face of trade tensions and economic uncertainty. According to new data from Wine Australia, exports to China exceeded A$1 billion ($640 million) in the 12 months since tariffs were lifted in March 2024.
- Value of exports to China grew nearly 2% to $1.03 billion
- Export volumes to China grew roughly 2% to 96 million litres
- Volume levels showed the region was “a premium market for Australian wine and will therefore not solve oversupply issues in Australia”
China lifted hefty tariffs on Australian wine at the end of March last year, ending three years of punitive taxes which devastated some of Australia’s winemaking regions.
“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,”
Peter Bailey, Market Insights Manager at Wine Australia
Despite the growth in exports to China, volume levels are still not at pre-tariff levels. In fact, they are only 23% smaller than the 5-year average between 2016 and 2020, and 44% below the peak in 2018.
- International exports from Australia increased 41% to A$2.64 billion
- Export volumes grew 6% to 647 million litres
- Average value of exports increased 33% to A$4.09 per litre, its highest average in almost two decades
China was key to the overall success of exports, with the region accounting for the largest share of international exports. The average value of exports increased 33% to A$4.09 per litre, its highest average in almost two decades.
| Destination | Value (A$ billion) | Volume (million litres) |
|---|---|---|
| Mainland China | 1.03 | 96 |
| UK | 0.32 | 208 |
| US | 0.23 | 106 |
| Canada | 0.12 | 60 |
Despite the growth in exports to China, international exports excluding mainland China declined 13% in value and 9% in volume. The decline was driven by lower sales in Hong Kong and lower demand in the UK, US, and Canada.
Wine Australia noted that tariffs, changing consumer habits, and cost-of-living pressures were all live challenges facing the industry. The group said that the global wine market is facing considerable headwinds, which are impacting on results for other markets aside from mainland China.
Key Challenges Facing the Industry
- Tariffs and trade tensions
- Changing consumer habits
- Cost-of-living pressures
- Escalating trade wars
Wine Australia highlighted that the global wine market is facing a number of challenges, including escalating trade wars, changing consumer habits, and cost-of-living pressures. The group noted that these challenges are unlikely to be resolved in the near-term.
Despite these challenges, Australian wine exports continue to show resilience and adaptability.
news is a contributor at BinkWines. We are committed to providing well-researched, accurate, and valuable content to our readers.
