NEWS
AUSSIE WINE EXPORTS SURGED 17% IN 2023-4 AS CHINA MARKET REOPENED
By Siulan Law Mathews DipWSET
5-8-2024
Source: Wine Australia
A surge in exports to China has driven Australian wine exports to increase 17 percent in value to AUD2.2 billion (USD1.43b) in 2023-4 financial year.
According to Wine Australia’s latest export report, export volume remained relatively steady at 619 million litres during the period.
Wine Australia’s Market insight manager, Peter Bailey, said that the rise in exports to China is still a small fraction of the historical peaks.
“The surge in exports to China towards the end of the financial year saw volume rise from one million litres to 33m litres and value grow by USD392m to USD400m compared to last financial year,” Bailey said.
“While the figures are very positive, they represent the restocking of Australian wine in the pipeline of a major market after a long absence and do not necessarily equate to retail sales.
“It will take some time before there is a clearer picture of how Chinese consumers are responding to the increased availability of Australian wine in-market.
“Consumption of both domestic and imported wines in China is less than a third of what it was six years ago and thus it is very unlikely that Australian wine exports will return to those previous peaks in the short to medium term.”
Source: Wine Australia
Exports to the rest of the world declined by four percent to AUD1.8b and volume decreased by five percent to 587m litres.
This is the lowest volume exported to the rest of the world in a financial year since 2003-4. The decline in volume was most significant in unpackaged exports priced under AUD1.5 per litre to USA and Canada, down a combined 20m litres.
“Global trading conditions remain very challenging with wine consumption continuing to fall in many markets around the world due to moderation trends and cost of living pressures. There are also enduring problems in shipping, with a shortage of ships globally and freight and charter rates on the rise,” Bailey said.
Still red wines from Australia was the main beneficiary of the growth in exports to China, with total volume of red wine up three percent to 330m litres and value up 27 percent to AUD1.5b compared to 2022-3.
Cabernet Sauvignon grew in value by 41 percent to AUD469m and volume by 12 percent to 70m litres, with the USA also contributing to the increase in exports of this variety.
For white wine, Chardonnay remained the number one variety and while volumes declined by six percent to 158m litres, value was up marginally to AUD307m.
The top five destinations by value were:
• China (up AUD392m to 400m),
• USA (down AUD2m to AUD357m),
• UK (down AUD11m toAUD$353m),
• Hong Kong (up AUD55m toAUD275m), and
• Canada (down AUD17m to AUD146m).
The top five destinations by volume were:
• UK (down 3m litres to 217m litres),
• US (down 11m litres to 124m litres),
• Canada (down 8m litres to 68m litres),
• China (up 31m litres to 33m litres), and
• New Zealand (down 3m litres to 28m litres).
(the writer can be contacted at: info@thewinechronicle.com)
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