Australian wine exports to China exceeded A$1bn ($640m) in the 12 months since tariffs were lifted in March 2024, but volumes are not yet back to pre-tariff levels, new data from the trade body Wine Australia shows.
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.
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In 2024, mainland China was the top destination by value, with exports growing nearly 2% to $1.03bn, according to Wine Australia’s Export Report which covers the period 1 April 2024 to 31 March 2025.
While value of exports to China are now “at a similar” level to where they were before tariffs came into force, volumes sold are yet to recover, Wine Australia’s market insights manager Peter Bailey said in a statement.
Over the 12-month period export volumes of Australian wine to China grew roughly 2% to 96 million litres, a 44% drop from its peak in 2018, he said.
“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.”
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By GlobalDataBailey added that though the value of exports to mainland China was relatively back to pre-tariff levels, volume levels showed the region was “a premium market for Australian wine and will therefore not solve oversupply issues in Australia”.
Total international exports from Australia increased 41% to A$2.64bn from April 2024 through March, and by volume grew 6% to 647 million litres.
The 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. International exports, excluding mainland China, declined 13% in value to A$1.62 billion and 9% in volume to 551 million litres, the lowest value for exports excluding China in ten years and lowest volume in over twenty years.
The decline in value was driven by lower Hong Kong sales, while the volume drop was due to lower demand in UK, the US and Canada, the trade body said.
In the twelve month period, export volumes to the UK dropped 8% to 208 million litres. Shipments to the US fell 17% to 106 million litres, and to Canada fell 19% to 60 million litres.
Despite the upturn in exports to China, Wine Australia said tariffs, changing consumer habits and cost-of-living pressures were all live challenges. “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,” the group said in a statement.
“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,” it added.
