Australian wine exports to China top $1 billion, but global headwinds remain

Australian wines are once again flowing freely into China, with exports topping the billion-dollar mark just one year after crippling tariffs were removed, according to Wine Australia’s latest Export Report released on Tuesday.

In what could be called a grape comeback story, Australian wine exports surged 41 per cent in value to $2.64 billion and 6 per cent in volume to 647 million litres in the year ending March 2025, with mainland China gulping down 96 million litres valued at $1.03 billion.

“The increase in average value is mainly due to the elevated level of premium wine shipments to mainland China, after tariffs on Australian bottled wine were removed at the end of March 2024,” explained Peter Bailey, Manager of Market Insights at Wine Australia.

However, it’s not all rosé in the global wine market. While Australian winemakers are popping corks over China’s return, exports to the rest of the world have soured, declining 13 per cent in value to $1.62 billion – the lowest in a decade.

The China market itself has transformed, with volumes still 23 per cent smaller than the five-year average before tariffs. Instead, China is now firmly a premium destination, with packaged wines fetching an impressive $23 per litre on average – far higher than any other major market.

“The lower volume and high average value demonstrate that mainland China is a premium market for Australian wine and will therefore not solve oversupply issues in Australia,” Bailey noted.

Meanwhile, traditional markets are feeling the hangover from global economic challenges. The UK remains Australia’s largest market by volume despite an 8 per cent decline, while the US saw exports drop 17 per cent in volume amid newly imposed 10 per cent tariffs from the Trump administration.

Industry experts warn that health-conscious consumers drinking less, cost-of-living pressures, and escalating trade wars could continue to ferment problems for wine exporters across global markets in the near future.