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Following the collapse of its Chinese market, Australia has been forced to adapt its strategy and target emerging Asian markets.

When China imposed 218% tariffs on Australian wine, effectively halting sales in 2020, the Australian Wine Industry was on the brink of collapse, so it went looking for alternative solutions, particularly in Korea.   According to the Australian Bureau of Agricultural and Resource Economics (ABARES) Korea is now the fifth largest export market after China, Japan, the US, and Vietnam, and the tenth most valuable.   It remains a hotspot for growth, as reported by Wine Intelligence.

Wine made from grapes only constitutes 13% of alcohol sales in Korea, overshadowed by the popularity of rice wine which commands 85% of the market.   However, the landscape is changing.   The number of grape-based wine consumers has grown from 10.2 million in 2017 to 12.6 million in 2022.   This trend signals a rising interest in a beverage that is predominantly consumed at home, suggests Wine Intelligence.   However, only three 3% of Korean wine drinkers currently include Australian wines as a preference.   According to Wine Australia, only around 15% of individuals considering a purchase opt for one of its bottles.   Like Japan, Korea is a premium market and Australian wine lacks a distinctive position and is largely perceived as ‘accessible’.

Nevertheless, a Wine Australia spokesperson suggested that demand for premium wine exports continues to surge in North East Asia.   She reported that consumers are increasingly drawn to the stories, the people, and the locations associated with wine production.   This interest is reflected in the 65% volume and 93% value of glass bottle exports.