Australia’s wine industry has reported a strong rebound in exports during the 2024–2025 fiscal year, with total wine export value rising 13% to AUD 2.48 billion (USD 1.64 billion), according to the latest Export Report from Wine Australia.
The increase marks a significant recovery following years of decline, largely attributed to the resurgence of exports to mainland China after the removal of punitive anti-dumping tariffs in March 2024.
China Returns as Top Market by Value — But Volumes Remain Halved
Mainland China reclaimed its spot as Australia’s largest wine export market by value, surging 123% to AUD 893 million and accounting for 36% of total export revenue. Export volumes also climbed by 162% to 85 million litres. However, these figures still represent just half of the volume peak seen in 2018, underlining the structural changes in China’s wine consumption landscape.
Peter Bailey, Manager of Market Insights at Wine Australia, noted that the impressive rebound was “almost entirely driven” by the lifting of Chinese tariffs. However, he cautioned that the spike reflected an initial restocking phase, as export activity in the final quarter of the fiscal year was down 35% compared to the same period a year earlier.
“The broader Chinese wine market has undergone a sharp contraction in recent years,” Bailey added. “It’s now only a third the size it was in 2019, and imports from other major producers like France, Italy, Spain, and Chile have all declined.”
Notably, the average price per litre of wine exported to China increased, suggesting that Australia is shipping more premium wines to the market.
Broader Growth in Asia-Pacific Markets
Beyond China, Australian wine also made inroads in key Southeast Asian markets. Since 2020, the region has enjoyed an average annual export volume growth of 6%, highlighting its growing strategic importance.
- Singapore saw a 4% rise in volume to 6.1 million litres and a 14% increase in value to AUD 113.3 million.
- Thailand recorded a 6% rise in volume to 7.8 million litres, although value dropped 22%, indicating a pivot toward more affordable wines.
- Malaysia experienced a 10% jump in volume and a 23% rise in value to AUD 42.4 million.
- India saw the most dramatic growth, with exports up 25% in volume and 40% in value to AUD 9.5 million.
Conversely, South Korea demonstrated a shift toward lower-priced wines. While volume grew 26% to 4.5 million litres, the total value fell 9% to AUD 25.9 million.
Japan and Hong Kong Diverge
Japan showed relative market stability despite a 13% decline in export volume to 10.7 million litres. The export value remained flat at AUD 46 million, pointing to resilience in mid- and high-tier segments.
In contrast, Hong Kong experienced a sharp downturn. Wine export volume fell 25% to 7.6 million litres, and value plunged 54% to AUD 126.5 million. Wine Australia explained that this shift was expected due to the reduction in Hong Kong’s role as a logistical transit hub for Australian wines during the China tariff years.
A Long Road to Full Recovery
Despite the headline growth and China’s return, Wine Australia stresses that the industry still faces structural challenges. With global consumption trends shifting, especially in China, a return to previous export peaks may take years, if ever. Nonetheless, premiumisation trends and diversification into Southeast Asian and South Asian markets suggest new opportunities for sustainable long-term growth.
Source: Vino-Joy