Australian wine exports declined last year as weaker global consumption, price pressure and an uneven recovery in China weighed on performance.
Wine Australia’s Export Report for the 12 months to December shows export value fell 8 per cent year on year to $2.34 billion, while volume declined 6 per cent to 613 million litres. The average free-on-board value dropped 3 per cent to $3.81 per litre, reflecting ongoing down-trading across major markets.
China, which had provided a short-term boost after tariffs were lifted in early 2024, recorded a 17 per cent fall in export value to $755 million. Wine Australia said the Chinese market remains structurally smaller than before tariffs were imposed, limiting its capacity to offset declines elsewhere.
“While the re-opening of the mainland China market at the end of March 2024 provided some temporary relief in the decline in total exports, the Chinese wine market is one-third of the size it was five years ago,” said Wine Australia manager of market insights Peter Bailey. “This is impacting both domestically produced and imported wines.”
He added that although shipment levels in the first three quarters after tariff removal were exceptionally strong, consumer demand has since softened. “Chinese consumer confidence has only made minor improvements since hitting an all-time low during the Covid-19 pandemic in 2022, which has constrained consumer spending.”
More than half of Australia’s wine export volume continues to go to the UK and the US, both of which are experiencing long-term declines in wine consumption. Cost-of-living pressures, moderation trends and fewer drinking occasions are contributing to weaker demand.
Some diversification is emerging. Canada and several Southeast Asian markets, including Singapore, Thailand and Malaysia, recorded growth in export value, albeit from a lower base.
The report also highlights shifting consumer preferences. While red wine exports to China fell, white wine volumes increased sharply, lifting their share of total exports as varieties such as Chardonnay, Sauvignon Blanc and Riesling gained popularity.
Wine Australia said the results underscore the need for exporters to adapt to structural changes in global wine consumption, with market diversification and portfolio alignment becoming increasingly critical to the sector’s recovery.
