Wine exports to China grow by 56% in the space of a year

Exports of Australian wine to China rocketed by 56% in the 12 months leading up to 30 September 2017, with the economic powerhouse placing orders worth $739mn.

Overall export value grew 13% to $2.44bn and volume grew by 9% to 799mn litres, signalling a slight preferential shift towards higher-end wine. Indeed, the $30-50 price bracket saw the most growth out of any, recording an increase in sales of 69%.

Red wine continues to dominate exports, contributing 74% of export value. Red wine is also the standout growth category for table wine, growing by 16 per cent to $1.8bn. Exports of white wine also grew but at a much lower rate of 2% to $546mn.

RELATED STORIES:

• How Alibaba is growing Australian wine
• Coca-Cola Amatil steps into Australian craft beer industry with Feral Brewing acquisition
• Read the latest Business Review Australia magazine
   

Andreas Clark, CEO of Wine Australia, said: “Established and new-to-market exporters are sharing in this strong export growth. There were a record 2,102 active exporters in the period, up from 1744 exporters in the same period in 2016. Of these, 1475 exporters experienced a growth in exports of 28% to $2bn.”

The reduced tariffs through the China–Australia Free Trade Agreement has seen exporters now shipping directly to mainland China instead of Hong Kong, a big factor in the 56% growth witnessed over the past year. Also, as logistics and route-to-market practices evolve, some products are being sent earlier to market.

The below graphic summarises Wine Australia’s findings.