08 Apr Levels of Alcohol in Australian Wine Exports Shift Down as Excise Duties go up
Following the UK Alcohol Duty Review, as of 1 August 2023, all wine sold in the United Kingdom started being taxed on the level of alcohol in the product, rather than by volume.
This has had a direct consequence on the level of alcohol in the wine sold in the UK, including Australian products.
The UK is the largest export market for Australian wine by volume, contributing 33 per cent of total volume exported in the 12 months to December 2024. In this period, 212 million litres were shipped from Australia to the UK, worth $352 million in free on board (FOB) terms. The UK ranks second in export value, with 89 per cent of exports shipped in bulk containers to be packaged in market.
Between 2022 (before the changes to duties were implemented) and 2024, the total volume of Australian wine shipped to the UK has declined by just 2 per cent however the level of alcohol in the exported products has changed.
In 2022, less than 5% of Australian wine exported to the UK was below 11.5% in alcohol content. In 2024, that share has grown to 42%. Wines with between 11% – 11.49% alcohol content have increased in share from 4% to 36% of exports. This shift has occurred in both red and white wine.
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