Australia’s bottled wine exports to China have seen a remarkable resurgence in the first nine months of 2023, following a period of strained trade relations. Data from Chinese customs reveals that Australia exported 3.51 million liters of bottled wine to China in September alone, a stark contrast to the nearly non-existent imports in January, when the total volume was just one liter. This upswing comes amid transportation challenges that have impacted European wine exporters, enabling Australia to regain a foothold in China’s market.
The value of Australian bottled wine exports to China reached $335.5 million from January to September—a staggering 613-fold increase from the same period last year and 57 percent of the amount during the same period in 2019. In September, the value was 2,952 times higher than the same month last year, shortly after China removed punitive tariffs on Australian wine. With these developments, Australia has reclaimed a 32.32 percent share of China’s imported wine market, making it the second-largest supplier behind France, which maintains a narrow 1.65 percentage point lead.
The revival of Australian wine exports to China follows Beijing’s decision to lift tariffs of up to 218.4 percent imposed in 2020 on Australian wine, lobsters, and coal. The tariffs were introduced after Australia advocated for an investigation into the origins of COVID-19, which caused Australia’s share of China’s wine market to plummet to just 0.06 percent in 2022 from a dominant 37 percent in 2019.
Previously, under a 2015 free-trade agreement, Australian wine had benefited from zero tariffs in China, offering a 14 percent competitive advantage over many other wine-producing nations. The impact of these newly restored trade relations may take time to assess, as the initial surge in exports likely reflects restocking efforts rather than actual retail demand, said Wine Australia manager Peter Bailey. He noted that consumer response to the return of Australian wines in Chinese markets remains to be seen.
Broader trends in China’s wine imports also show an upward trajectory, increasing by 31 percent year-over-year for the first three quarters of 2023. However, Wine Australia cautions that global wine demand is declining as consumers, driven by health consciousness and rising living costs, reduce alcohol consumption. Compounding these challenges, shipping delays and rising transportation costs due to regional conflicts have further hampered European wine exporters.
Chinese customs data reveals that French wine imports fell by nearly 10 percent in the first nine months of the year, while imports from Spain and Italy dropped by 21 percent and 16 percent, respectively. This decline in European wine imports has further bolstered Australia’s position in China.
In addition to easing tariffs on coal and wine, China is also expected to resume imports of live Australian lobsters by the end of this year, following diplomatic discussions at a recent ASEAN regional forum in Laos.
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