Australian wine exports have soared to $2.64 billion in value in the 12 months ending March 2025, marking a 41 per cent increase, according to Wine Australia’s Export Report released today. Export volumes rose by 6 per cent to 647 million litres, while the average value climbed 33 per cent to $4.09 per litre free on board (FOB) — the highest in nearly two decades.
The resurgence was largely driven by exports to mainland China following the removal of tariffs on Australian bottled wine in late March 2024. Over the past year, exports to China reached 96 million litres, valued at $1.03 billion.
Peter Bailey, Manager of Market Insights at Wine Australia, stated that the rise in average value was primarily due to a significant uptick in premium wine shipments to China. While the overall value of shipments has returned to levels seen prior to the imposition of tariffs, export volumes remain 23 per cent below the five-year average between 2016 and 2020 and 44 per cent lower than the 2018 peak.
Bailey also noted that the average value of packaged wine exports to China stood at $23.00 per litre, far surpassing all other major markets. The figures highlight China’s role as a premium market for Australian wine, although they do not address the broader oversupply challenges faced by Australia’s wine industry.
In contrast, exports to markets outside mainland China experienced a downturn. Value fell by 13 per cent to $1.62 billion, and volume dropped by 9 per cent to 551 million litres — the lowest levels in a decade and over two decades, respectively. Declines were most notable in key markets such as the United Kingdom, United States, and Canada. A major contributor to the value drop was Hong Kong, where sales have been redirected towards mainland China.
The global wine industry faces significant headwinds, including a long-term decline in alcohol consumption linked to health and wellness trends and more recent pressures from rising living costs. Economic and political instability worldwide, along with escalating trade disputes, are expected to exacerbate these challenges. Trade wars, in particular, could drive up prices, disrupt supply chains, and alter the competitive dynamics of key wine markets.
On April 2, 2025, U.S. President Donald Trump announced the imposition of a 10 per cent tariff on wine imports from all countries, including Australia. Although the tariff applied universally at the time of the announcement, ongoing uncertainty surrounds the longer-term trade landscape. Factors such as cost absorption by consumers, currency fluctuations, and potential shifts towards domestic products make the outlook for Australian wine exports to the U.S. difficult to predict.
In the year to March 2025, Australian wine exports to the U.S. fell by 17 per cent in volume to 106 million litres and by 9 per cent in value to $323 million, marking the lowest levels since the early 2000s. The U.S. remains Australia’s second-largest market by volume and third-largest by value.
Exports to the UK, Australia’s largest market by volume, declined by 8 per cent to 208 million litres and by 3 per cent in value to $353 million. Despite the decrease, the number of exporters to the UK increased by 23 to 314 businesses over the year. Notably, 15 of the top 20 exporters by value recorded growth.
The top five export destinations by value were:
- Mainland China ($1.03 billion, up $1.01 billion)
- United Kingdom ($353 million, down $12 million)
- United States ($323 million, down $32 million)
- Hong Kong ($154 million, down $136 million)
- Canada ($151 million, up $3.8 million)
The top five export destinations by volume were:
- United Kingdom (208 million litres, down 19 million litres)
- United States (106 million litres, down 21 million litres)
- Mainland China (96 million litres, up 94 million litres)
- Canada (60 million litres, down 14 million litres)
- New Zealand (26 million litres, down 3.5 million litres)
Meanwhile, exports to Canada fell 19 per cent in volume to 60 million litres but rose 3 per cent in value to $151 million. The average value per litre increased by 27 per cent to $2.53, driven by a shift towards higher-value packaged wine exports and a decline in bulk shipments.
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