Removal of China’s crippling tariffs on Australian wine lifts exports by more than a third

Australian winemakers are sitting on a glut of mainly red but the reopening of the post-tariff Chinese market has helped ease the pressure by lifting exports 34 per cent in 2024.

The return of Australian wines to the Chinese market has helped offset a general decline in consumption worldwide.

The value of Australian wine exports surged by 34 per cent in 2024, as the return of the lucrative Chinese market offset falling demand across the rest of the world.

According to latest Wine Australia figures, exports to China reached $902m in the nine months from April to December after punishing tariffs on Australian wine were lifted last March.

That helped to lift total exports for the year to $2.6bn, which was the highest level since June 2021 when the tariffs of up to 218 per cent were first imposed.

The total volume of Australian wine exports in 2024 was 7 per cent higher at 649 million litres.

Wine Australia market insights manager Peter Bailey said that while the figures reflected a “very positive” trend, it would take some time to determine whether China would raise it back to the $1.2bn market it once was.

“While there has been month-to-month volatility in the value of shipments to mainland China in the period since tariffs were removed, the performance is nonetheless very positive,” Mr Bailey said.

“However, Chinese wine consumption is much lower than it was before the import tariffs were imposed, so it will take more time before it becomes clear what the new normal level of exports to mainland China will be, after this initial restocking period.

“Continued growth is not assured, and it is still important to focus on market diversification in a challenging global business environment.”

Australian winemakers are sitting on a 200 million litre glut of mainly red wine despite winding back production in the aftermath of the three-year trade stand-off with China.

There are fears it will take several years for the oversupply to ease, given the global decline in alcohol consumption and as more consumers turn away from wine due to health concerns and the rising cost of living.

Figures from Wine Australia show that global wine consumption has fallen by 4 per cent a year since the onset of Covid-19, while the annual decline for other alcoholic drinks has been just 1 per cent.

Per capita wine consumption is now a quarter less than it was 20 years ago while other alcoholic drinks are at the same level.

The value of Australian wine exports to the rest of the world outside of China declined by 13 per cent in 2024 to $1.64bn, led by a 42 per cent fall to Hong Kong to $171m, and declines in other established markets such as the UK and US.

The UK and US retained their positions as the second and third largest markets for Australian exporters at $352m and $325m in total sales, while Canada came in as the fifth largest market after reporting a 9 per cent increase to $156m.

Originally published as Removal of China’s crippling tariffs on Australian wine lifts exports by more than a third