08 Apr Where Australian Wine Exports Flow
In the 12 months ended December 2024, Australian wine exports grew by 34% in value, totalling $2.55 billion – the highest value since June 2021 – with total volume also increasing by 7% to reach 649 million litres over the same period.
These highs were predominantly attributable to the amount of post-tariff shipments, which saw 83 million litres of wine, worth $902 million, flow into mainland China.
However, when we put aside this unique driver of demand, the reality is that a combination of factors, such as health and wellness concerns and the rising cost of living has seen the international consumption of wine decline, resulting in a global oversupply of wine and increased competition in already strained supply chains. For example: Australian wine exports declined by 13% in value to $1.64 billion and 7% in volume to 565 million litres during the 12 months to December 2024.
However, whilst volume and value may have slightly decreased, variety in export destination has increased. As of December 2024, Australian wine exporters shipped wine to 119 destinations, up from 112 in the previous year. As can be seen in the graph below, the Northeast Asian region (which includes China) grew by 181% per cent, Southeast Asia declined by 23% in value to $210 million, with almost all smaller, emerging markets also declining.
It’s important to note that the decline in exports to Southeast Asia does not necessarily reflect a material change in demand, but that rather some exporters have chosen to prioritise a re-stocking of their supply chains throughout mainland China.
Whilst Europe and North America both reflect a decline in exports, Canada offset these drops whilst Europe reflected mixed results based on destination, proving that when it comes to wine exports, diversifying your market is key.
Outlined below are the top five wine export destinations:
The top five wine export destinations by value were:
- Mainland China ($907 million)
- UK ($352 million)
- US ($325 million)
- Hong Kong ($171 million)
- Canada ($156 million).
The top five wine export destinations by volume were:
- UK (212 million litres)
- US (106 million litres)
- Mainland China (84 million litres)
- Canada (66 million litres)
- New Zealand (27 million litres).
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