Australian wine exports fall 14% as China sales level off

Australian wine exports fell sharply in the 12 months ended March 2026, but gains in Canada and across parts of Asia offered some relief as shipments to mainland China leveled off after the removal of tariffs on bottled wine, according to Wine Australia.

Total export value dropped 14% to $2.28 billion, while volume fell 7% to 603 million liters, leaving shipments 15% below the 10-year average of 711 million liters. The decline reflected a market still adjusting to the end of Chinese import tariffs, which had briefly lifted trade after they were removed in late March 2024. In the latest period, exports to mainland China fell 29% in value to $728 million and 25% in volume to 73 million liters.

Wine Australia said 1,545 exporting businesses shipped Australian wine to 111 destinations over the period. Europe remained the largest region by volume, but exports there fell 9% to 265 million liters, led by weaker shipments to the United Kingdom and Germany. Exports to the UK declined 5% in value to $336 million and 9% in volume to 190 million liters, as higher costs and softer consumer demand continued to weigh on trade. About 91% of Australian wine sent to Britain is unpackaged and bottled locally.

The United States also remained a difficult market. Australian wine exports there fell 22% in value to $251 million and 1% in volume to 105 million liters. Wine Australia said most of the decline came from lower-priced bottles, as American consumers pulled back on spending and tariffs added pressure for importers and producers. The average export value to the US dropped 21% to $2.39 per liter FOB.

Canada was a clear bright spot. Australian wine exports there rose 24% in value to $188 million and 15% in volume to 69 million liters. The average value per liter increased 8% to $2.73 FOB. Wine Australia said Australian brands benefited after American wines were removed from Canadian liquor boards in response to US tariffs on Canadian products imposed in early 2025. Sales grew strongly in Ontario, where Australia’s market share rose from 6% to 9%, and also increased in British Columbia and Quebec.

Asia outside mainland China and Hong Kong also posted solid growth, with export value up 19% to $393 million and volume up 7% to 44 million liters. Singapore remained an important shipping hub, while Thailand and Malaysia showed rising demand. Exports to Thailand reached a record $64 million. Japan and South Korea also grew, with export value up 10% and 6%, respectively.

Wine Australia said the mixed results showed how dependent the industry remains on a small number of major markets even as demand broadens in other regions.