Australian wine exports rebound as China lifts tariffs but global demand remains subdued

Australian wine exports have increased in both value and volume in the year leading up to June 2025, according to the latest data from Wine Australia. The main factor behind this growth has been the reopening of the Chinese market after China removed tariffs on Australian bottled wine in March 2024. Exports to mainland China reached AU$893 million, a 123% increase compared to the previous year, with 85 million liters shipped.

Despite this strong rebound, industry analysts note that overall export levels remain well below those seen before the COVID-19 pandemic. The sector had experienced record lows in recent years due to trade restrictions and global market challenges. Peter Bailey, Manager of Market Insights at Wine Australia, said that while the return to China has provided a boost, growth is starting to slow. “The quarter ended June 2025 was 35 percent smaller in value than the same quarter in the previous year. This indicates that the level of exports to mainland China may be normalizing after the initial re-stocking phase,” Bailey said.

Bailey also pointed out that Chinese demand is still far from its previous peak. “The return of mainland China offers a valuable market, with global wine consumption at its lowest level since 1961. However, it has only had a small impact on total export volume, as the volume shipped to mainland China is half of what it was at its peak in 2018,” he said. He added that the Chinese market is now only a third of its size compared to 2019, and imports from other major wine-producing countries like France, Italy, Spain, and Chile have also declined over the past year.

Outside of China, Australian wine exports faced broader challenges. Exports to other markets dropped by 11% in value to AU$1.59 billion and by 6% in volume to 554 million liters. This decline was partly due to a reduced supply of export-ready wine following three smaller vintages and weaker demand in key markets.

Exports to the United States fell sharply, down 12% in value to AU$314 million—the lowest level in more than twenty years—and down 10% in volume to 111 million liters. Wine Australia attributed this drop to several factors: changing drinking habits after COVID-19, fewer young people choosing wine, increased competition from other alcoholic beverages, and ongoing economic and political uncertainty including import tariffs.

In the United Kingdom, exports remained relatively stable in value at AU$350 million (down just 1%), but fell by 6% in volume to 204 million liters. While bulk wine shipments declined, packaged wines priced between AU$2.50–$4.99 and above AU$7.50 per liter grew by 4% and 20%, respectively. Australia maintained a strong presence in UK retail stores with a 23% share of off-premise wine sales.

Canada saw mixed results: export value rose by 7% to AU$157 million despite a 10% drop in volume to 61 million liters. The increase in value was supported by higher-priced packaged wines and possibly boosted by Canadian liquor boards removing American wines from shelves after US tariffs on Canadian goods.

Southeast Asia showed modest growth with exports up by 4% in volume, led by Thailand, Singapore, and Malaysia. Although results fluctuate year-to-year, exports to Southeast Asia have grown on average by 6% annually since 2020.

Asia accounted for more than half (55%) of Australian wine export value over the past year, followed by Europe (21%), North America (19%), Oceania (4%), and other regions (1%). Export values increased across all price points, with wines priced above AU$10 per liter rising by 23% to AU$1.17 billion.

Shiraz remained Australia’s top exported varietal at 169 million liters (up 11%), followed by Chardonnay at 138 million liters (down 5%) and Cabernet Sauvignon at 97 million liters (up 8%). In total, Australia exported wine to 116 countries during the year through June 2025, with more than 1,800 exporters shipping over 21,500 different products. On average, about 16.3 million glasses of Australian wine were consumed overseas each day during this period.