Australian wine exports experienced a resurgence, climbing 13 per cent to $2.48 billion for the 2024-25 period compared to the previous year. This growth was largely fueled by a remarkable 123 per cent surge in exports to China, reaching $893 million. The increase follows the removal of tariffs imposed by Beijing three years prior, with the market reopening in March 2024. Wine Australia reported that exports to China are now stabilising after an initial surge. Treasury Wine Estates, owner of the Penfolds brand, is Australia’s largest exporter to China; the company focuses on the production and marketing of wine brands across the globe.
In contrast, exports to the United States faced a downturn, slipping 12 per cent to $314 million, marking the lowest value in over two decades. Wine Australia attributed this decline to several factors impacting the US market. These include ongoing economic and political uncertainty, potentially stemming from import tariffs, as well as health and wellness concerns among older drinkers.
Additionally, a shift towards other alcoholic beverages and high inventory levels among wine distributors contributed to the decreased exports to the US. The organisation also stated that exports to the UK, Australia’s second-largest wine export market, experienced a slight decrease of 1 per cent, settling at $350 million.
Peter Bailey, Wine Australia’s manager of market insights, noted that the initial surge in exports to China is now stabilising. Despite challenges in some markets, the overall growth in exports highlights the resilience of the Australian wine industry and its ability to capitalise on opportunities in key markets.
