AUS
NZ
UK
CA
USA
IND
Highlights
- Australian wine exports surged by 34% in the last year.
- Exports to China reached $612 million after tariff removal.
- Treasury Wines remains a key player in the China market.
Australian wine exports have experienced a significant boost, growing by 34% in the past year, reaching $2.39 billion by the end of September, according to new data released by Wine Australia. The sharp increase is largely attributed to the resurgence of the Chinese market, which saw exports jump to $612 million, a substantial rise from the $8 million recorded the previous year when heavy tariffs were in place.
The tariffs, imposed by the Chinese government, had significantly slowed exports, but their removal in March this year opened the door for Australian wine producers to re-enter the market. Wine Australia’s market insights manager, Peter Bailey, highlighted that this was the highest level of export sales seen in more than three years.
The most significant growth in sales to China occurred during the June quarter, as Australian wine producers ramped up shipments to replenish the supply in the region. The bulk of these exports were focused on premium wine segments, which limited the impact on the existing surplus of red wine from Australia's warm inland regions. These inland areas typically supply more affordable wine options, which face ongoing oversupply challenges.
Treasury Wines (ASX:TWE), the owner of the renowned Penfolds brand, continues to be the largest exporter of Australian wine to China. Even during the tariff period, Treasury Wines maintained a presence in the Chinese market by introducing a locally produced Penfolds wine and selling wines from the United States and France under its label. This strategic positioning has enabled the company to quickly regain momentum as trade with China resumed, bolstering the overall export figures.
With the tariff barriers now lifted, Australia’s wine industry is looking to maintain this positive trajectory, driven by a strong presence in the premium segment of the Chinese market.
