How tough Chinese duties changed Aussie wine exports

Australian wine exports to China have surged since removal of strict import rules. But has the damage been done for this valuable export market?

The value of Australian wine exports into China has surged more than 30 per cent in the months since removal of strict import duties on Australian wine.

But more competition in the Chinese market during Australia’s absence might mean the value of exports may never reach the dizzying highs once seen, according to one industry leader.

The latest Wine Australia Export report found the value of Australian wine exports into China lifted 34 per cent to $2.39 billion in the 12 months to September 2024, while volume of exports lifted seven per cent to 643 million litres, the highest levels seen since 2021.

Exports to all other destinations were stable in value at $1.78 billion and declined in volume by 3 per cent to 585 million litres.

Australian Grape and Wine chief executive Lee McLean said while there has been a strong re-entry into the Chinese market, there was still hesitancy in industry.

Wine exports into China have lifted in both value and volume in the 12 months to September 2024. Picture: Zoe Phillips

“I think it’ll be our largest export market again, but not quite as big as it once was, and certainly not going to be something that’s going to solve all those issues we’ve got of oversupply, and structural issues with grapes in certain regions,” Mr McLean said.

Mr McLean said the strong surge in volume and value into China may have been partially driven by larger wine companies preparing for re-entry since the removal of import duties on Australian bottled wine in March this year. 


“Anecdotally, what we’re hearing is there’s still demand (in China) for Australian wine, but not as strong as it was prior to the import duties,” Mr McLean said.

“Partly because the market is looking different, there’s more competition from other producers because we were out of the market for a while. The domestic Chinese market is growing, and economic conditions means people are tightening their belts, just like we are.”

Wine Australia manager market insights Peter Bailey said while the September quarter was smaller than June in both volume and value, it was “still significant”, and totalled 27 million litres worth $214 million.