In the 2023–24 financial year, Australian wine exports experienced a notable resurgence, registering a 17% increase in value to reach AUD 2.2 billion (approximately EUR 1.4 billion), the highest level since the 12 months ending in September 2021.
Despite this significant growth in export value, the volume of wine exports saw a slight decline of 0.2% to 619 million litres. The average value per litre of wine increased by an impressive 18% to AUD 3.53 (approximately EUR 2.27) per litre free on board (FOB).
Export Destinations and Dynamics
The number of destinations for Australian wine exports fell slightly, from 117 to 115. However, the overall increase in export value can be largely attributed to a dramatic surge in exports to mainland China. This spike followed the removal of duties on Australian bottled wine in late March 2024. Consequently, exports to mainland China grew by a staggering AUD 392 million (approximately EUR 252 million), reaching AUD 400 million (approximately EUR 257 million) in 2023–24. The volume of wine exported to China also saw a remarkable increase, from 1 million liters to 33 million liters.
In contrast, exports to the rest of the world (excluding mainland China) experienced a decline. The value of these exports fell by 4% (AUD 68 million, approximately EUR 44 million) to AUD 1.8 billion (approximately EUR 1.15 billion), while the volume decreased by 5% (33 million liters) to 587 million liters. This marks the lowest volume of wine exported to the rest of the world in a financial year since 2003–04. The most significant decline in volume was observed in unpackaged exports priced under AUD 1.50 (approximately EUR 0.96) per liter to the United States (US) and Canada, which together dropped by 20 million liters.
Unpackaged vs. Bottled Wine Exports
Unpackaged wine exports, which involve wine shipped in bulk to be packaged in the destination market, saw a decrease in both volume and value. The volume of unpackaged exports fell by 2% to 419 million litres, and the value declined by 3% to AUD 470 million (approximately EUR 302 million). The average value of unpackaged exports also dipped by 2% to AUD 1.12 (approximately EUR 0.72) per litre.
Conversely, bottled wine exports showed robust growth. The volume of bottled exports increased by 3% to 194 million litres, and their value soared by 25% to AUD 1.7 billion (approximately EUR 1.09 billion). The average value of bottled exports reached a record high of AUD 8.76 (approximately EUR 5.63) per litre, a 21% increase. While mainland China was the primary driver of this growth, there was also notable expansion in bottled wine exports to Hong Kong and the US.
Regional Market Shifts
Northeast Asia emerged as the leading region by export value, surpassing Europe and North America, primarily due to the increased exports to mainland China. Europe, although remaining the top region by volume, experienced a 2% decline in volume and a 5% decrease in value. Similarly, exports to North America, Southeast Asia, and other regions also faced reductions in both volume and value, reflecting the broader challenges in global trade conditions.
Conclusion
The 2023–24 financial year marked a significant recovery for Australian wine exports, driven primarily by the reopening of the Chinese market. This surge in exports to China offset declines in other regions and categories, highlighting the critical impact of market access and international trade policies on the Australian wine industry. As the global economic landscape continues to evolve, the industry's ability to adapt and capitalize on emerging opportunities will be crucial for sustained growth.
Source: Wine Australia