In a dramatic turnaround for the Australian wine industry, wine exports surged in value by 41% to AUD 2.64 billion in the 12 months ending March 2025, according to Wine Australia’s latest Export Report.
The volume of exports also increased modestly by 6% to 647 million litres, with the average value per litre jumping 33% to AUD 4.09 – the highest in nearly two decades.
This resurgence has been largely attributed to renewed access to mainland China, where punitive tariffs on Australian bottled wine were removed at the end of March 2024. Over the past year, Australia exported 96 million litres of wine to China, valued at AUD 1.03 billion – a striking return to near pre-tariff revenue levels. Although volumes remain 23% below the 2016–2020 average and 44% below the 2018 peak, the current performance indicates a robust repositioning of Australian wine in the Chinese market.
Peter Bailey, Manager of Market Insights at Wine Australia, noted, “The average value of packaged wine shipped to mainland China reached AUD 23.00 per litre – a figure significantly higher than for any other export market. This confirms China’s status as a premium market for Australian wine. However, it also underscores that China cannot resolve the oversupply issue in the Australian wine sector alone.”
While the Chinese market provided a bright spot, exports to the rest of the world told a more sobering story. Exports (excluding China) dropped 13% in value to AUD 1.62 billion and 9% in volume to 551 million litres — marking the lowest value in a decade and the lowest volume in over twenty years. The decline in value was largely due to falling shipments to Hong Kong, while volume losses were spread across key markets including the UK, US, and Canada.
Compounding the issue are broader global challenges. The international wine market continues to grapple with long-term shifts in consumption due to health and wellness trends, while short-term economic pressures and geopolitical instability – including inflation, cost-of-living increases, and trade disputes – are constraining consumer spending.
The recent announcement of new US import tariffs on April 2, 2025, by President Trump adds further uncertainty. Australian wines, like those of all other nations, are now subject to a 10% import tariff upon arrival in the US. Though applied uniformly, the downstream effects on retail prices, demand, and foreign exchange rates are difficult to predict.
In the US, exports declined by 17% in volume to 106 million litres and by 9% in value to AUD 323 million. This puts the US as Australia’s second-largest market by volume and third by value, despite exports now being at their lowest since the early 2000s.
In the UK, the largest market by volume, Australian wine exports fell 8% to 208 million litres, with a smaller 3% drop in value to AUD 353 million. Interestingly, the number of exporters to the UK increased, with 314 companies now shipping there — up by 23. Among the top 20 exporters by value, 15 saw year-on-year growth.
Canada experienced a 19% decline in volume to 60 million litres but a 3% increase in value to AUD 151 million. This value growth was driven by an increase in premium packaged exports, highlighting a pivot toward higher-end offerings in the market.
Top Five Export Destinations by Value (Year to March 2025):
- Mainland China – AUD 1.03 billion (up AUD 1.01 billion)
- UK – AUD 353 million (down AUD 12 million)
- US – AUD 323 million (down AUD 32 million)
- Hong Kong – AUD 154 million (down AUD 136 million)
- Canada – AUD 151 million (up AUD 3.8 million)
Top Five Export Destinations by Volume:
- UK – 208 million litres (down 19 million litres)
- US – 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)
Despite the welcome rebound in China, Australian wine exporters face persistent global headwinds. The industry must now navigate an increasingly complex and volatile international landscape, marked by shifting trade policies, economic uncertainty, and evolving consumer preferences. Strategic diversification, a continued focus on premiumisation, and flexible market strategies will be essential for sustained growth in the years ahead.
Source: Wine Australia