China Reclaims Top Spot as Leading Market for Australian Wine Exports After Tariff Removal

After the removal of import tariffs on Australian wine in March 2024, mainland China has once again become the top export market for Australian wine by value. This shift marks a significant change in trade relations between the two countries and has brought renewed attention to the evolving preferences of Chinese wine consumers.

Recent years have seen a transformation in how wine is purchased and consumed in mainland China. The market has moved away from traditional uses such as gift-giving, official entertaining, corporate banqueting, and symbolic consumption. As a result, the overall size of the wine market in China has contracted sharply, now standing at about one-third of its size compared to five years ago. Despite this decline, wine remains an important beverage for many Chinese consumers, but their approach to buying and drinking wine has changed.

To help Australian wine producers better understand these changes, Wine Australia commissioned new research from Circana in September 2025. The study combined quantitative and qualitative methods to provide a detailed look at current consumer behavior. Key findings from this research have been shared with Wine Australia levy-payers.

The study found that among those who drink alcohol in mainland China, wine is the second most popular choice after beer. Red wine continues to be the most favored style. Wine appeals to a broad demographic across age and gender lines but tends to attract higher income groups more than other alcoholic beverages.

There are notable differences in consumer demographics depending on the type of wine. Red and white still wines are more popular among older consumers, while rosé and sparkling wines are preferred by women. These trends suggest that different marketing strategies may be needed for each wine style.

The main barriers preventing more widespread wine consumption in China include a general trend toward reducing alcohol intake, unfamiliarity with wine, and a perceived lack of suitable occasions for drinking it. When it comes to Australian wine specifically, consumers cited a lack of new products and promotions as well as price as key obstacles.

Although there was an increase in the frequency of wine purchases compared to the previous year, more than half of consumers still bought wine only once or twice per month. This indicates potential for growth if wine can be positioned as suitable for a wider range of occasions.

Red wine sales remained stable over the past year, but there was noticeable growth in purchases of white, rosé, and sparkling wines. This shift suggests that Chinese consumers are becoming more open to trying new styles beyond the traditional dominance of red wine.

The research also found that Chinese consumers have a stronger emotional connection to wine than to beer or spirits. Wine is associated with enhancing ambiance and creating a sense of ritual. It is also viewed as aspirational and elegant.

When considering drinking occasions, white and sparkling wines are seen as better suited for social gatherings rather than formal celebrations or special events. Rosé is perceived as particularly elegant and aspirational compared to red or white wines.

All types of wine were considered appropriate for casual occasions such as relaxing after work or pairing with meals. Australian wines stood out for their strong association with enhancing social experiences and creating a sense of ritual among family and friends. In terms of food pairing, Australian wines were rated just behind Chinese wines for compatibility with Chinese cuisine and second only to French wines when paired with Western dishes.

These insights highlight both challenges and opportunities for Australian winemakers seeking to grow their presence in mainland China’s changing market. Understanding these evolving consumer preferences will be key for producers aiming to adapt their offerings and marketing strategies in this important export destination.