China’s wine import data from January to November 2024 reveals a dramatic shift, with Australian wines leading the growth while imports from other major wine-producing nations continued to decline.
According to the General Administration of Customs, China imported 253 million liters of wine during this period, marking an 11.54% year-on-year increase. The total value of these imports reached USD 1.433 billion, a 34.34% rise compared to 2023.
This overall growth was driven almost entirely by Australian wine, which experienced an unprecedented surge. Import volume from Australia skyrocketed by 4,620.85%, while import value soared by 15,474.26%. Australian wine imports accounted for USD 515 million, making up 35.33% of China’s total wine import value—a stark contrast to its meager 0.30% share in 2023.
The Catalyst: Lifting of Duties
The sharp rise in Australian wine imports follows China’s decision in March 2024 to lift anti-dumping and countervailing duties on Australian wine. This policy change, combined with strong consumer demand, spurred a rapid recovery for Australian wine in the Chinese market. Despite ample stock levels, demand remained robust throughout the year, with imports in November alone rising 49.05% month-on-month, underscoring market resilience.
Declines for Traditional Wine Producers
While Australia celebrated its resurgence, other major wine-producing nations faced continued declines in the Chinese market:
- France: Import volume down 20.72%; value down 10.60%.
- Chile: Import volume down 15.04%; value down 20.31%.
- Italy: Import volume down 12.68%; value down 3.29%.
- Spain: Import volume down 37.02%; value down 27.06%.
This trend highlights the diminishing market share of these traditional powerhouses, a decline that has persisted since 2022.
Industry Perspectives
Wu Yonglei, General Manager of Fond Wine, attributed the market contraction for traditional producers to shrinking overall demand. He emphasized that Australian wine’s growth is largely driven by Penfolds, a brand with sustained consumer appeal. “Penfolds is the only brand that consumers actively seek out, which motivates importers to keep ordering. Other Australian wines, however, have not performed as well,” Wu noted.
Conversely, Dan Siebers, co-partner at Wajiu China, suggested that the surge in Australian wine imports reflects speculative activity rather than genuine consumer demand. This indicates potential volatility in future performance.
Bright Spots: New Zealand and Germany
Amid the challenges faced by traditional exporters, New Zealand and Germany emerged as notable exceptions:
- New Zealand: Import volume up 9.99%; value up 6.60%.
- Germany: Import volume up 12.95%; value up 11.83%.
The growth from these countries aligns with the rising popularity of white wine among younger Chinese consumers. Unlike traditional wine consumption associated with formal banquets or gifting, white wine is increasingly enjoyed in casual, personal settings such as solo drinking or informal gatherings. This shift has prompted importers to diversify their portfolios to meet evolving consumer preferences.
Source: Vino-Joy