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In the 12 months ended September 2024, Australian wine exports increased by 34 per cent in value to $2.39 billion and by 7 per cent in volume to 643 million litres, according to Wine Australia’s Export Report released today.

These are the highest levels of shipments by both volume and value since the 12 months ended August 2021, and the growth was driven by the re-entry of Australian wine exports to mainland China following the removal of import duties on Australian bottled wine in late March 2024.

The value of shipments to mainland China increased by $604 million to $612 million, while volume increased by 58 million litres to 59 million litres.

Wine Australia Manager, Market Insights, Peter Bailey said that “although the September quarter was smaller than the June quarter in both volume and value, it was still significant – totalling 27 million litres worth $214 million.

Of the 927 businesses exporting Australian wine to mainland China during the 12 months ended September 2024, the top ten exporters by value contributed 68 per cent of the total value and 38 per cent of total volume.

“While the export figures to mainland China are very positive, the impact on total export value is much larger than volume due to the premium price point of most wine entering the market.    As such, this increase is unlikely to reduce the oversupply of red winegrapes in the warm inland regions.

“It’s important to note that shipments in these first six months are likely to be characteristic of re-stocking Australian wine after a long absence.    Export levels are not equivalent to retail figures, and it will take time before it is evident how Chinese consumers are reacting to having Australian wine back in market.   Despite this recent growth in exports, it is increasingly important to pursue market diversification and defend our share in other wine markets,” Mr Bailey said.

Exports to all other destinations were stable in value at $1.78 billion and declined in volume by 3 per cent to 585 million litres.

“The most significant decline in volume was in exports to the United States, with nearly all the loss in volume (21 million litres) being unpackaged wine, following a surge in unpackaged wine to the market throughout 2022 and the start of 2023.    Exports to Canada stabilised in value as the decline in unpackaged wine eased and exports with an average value of $7.50 and above increased by 28 per cent in value,” Mr Bailey said.

In Europe, growth in exports to the United Kingdom and Belgium more than offset declines to Germany, Denmark, and Spain – resulting in a small increase overall for the region.”

“Driving the results for markets, aside from mainland China, is the ongoing decline in global wine consumption as consumers moderate their alcohol consumption due to a more active focus on their health as well as cost-of-living pressures.    Shipping delays and increased shipping costs due to regional conflicts are also making it harder for wine exporters to get their products into market.”

According to Trade Data Monitor, total wine exports of the world’s top 10 wine exporting countries dropped by 3 per cent in volume in the year ended June 2024, with Italy, Spain, France, South Africa, Germany, and New Zealand each reporting declines in wine exports.