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Exports to mainland China plateau after initial re-stocking period

Market Bulletin | Issue 351
28 Oct 2025
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In the year ended September 2025, Australian wine exports increased by 2 per cent in value to $2.44 billion and decreased by 4 per cent in volume to 618 million litres. Average value increased by 6 per cent to $3.94 per litre free on board (FOB). 

The decline in volume indicates that increasing exports to mainland China are no longer able to offset the decline in volume to other major markets. However, while exports to mainland China increased year-on-year (see below for more detail), current levels are 28 per cent lower in value and 40 per cent lower in volume than the year ended September 2020 (just before tariffs were imposed on bottled Australian wine), which aligns to levels of suppressed demand for wine in the market.

Shipments to the rest of the world declined by 11 per cent in value to $1.59 billion and 7 per cent in volume to 545 million litres.

Figure 1: Volume by destination market, year ended September

Destinations

In the year ended September 2025, Australian exporters shipped wine to 116 markets, up from 113 in the previous year. 

The largest destination region for Australian wine exports is Europe, representing 44 per cent of volume. In the past 12 months, volume shipped to this region declined by 13 per cent to 271 million litres, while value declined by 8 per cent to $494 million. Exports to the United Kingdom (UK) were the largest driver of this decline, followed by Germany.

Figure 2: Volume of wine exports by region

Exports to North America were flat in volume, as an increase in unpackaged shipments (wine to be packaged in market) to the United States (US) was offset by a decline in the same type of exports to Canada. In value, the region declined by 3 per cent as growth to Canada was unable to offset persistent headwinds in the US market. 

Mainland China was the chief contributor to growth in Northeast Asia, partially offset by a decline in exports to Hong Kong. There were also positive results in exports to Southeast Asia, driven by Singapore, Thailand and Malaysia.  

Mainland China

Australian wine exports to mainland China increased by 39 per cent in value to $847 million and 26 per cent in volume to 73 million litres. While rolling 12-monthly value has been relatively stable in the past six months, volume has been on a steady decline since the post-tariff peak in March 2025 (see Figure 3). According to customs data, Chinese wine imports from France, Chile, Italy, and Spain declined in the 12 months ended August 2025. While imports of Australian wine offset some of this decline, total wine imports declined by 7 per cent year-on-year[1]

Both unpackaged and packaged Australian wine exports to mainland China grew in the past 12 months, with 52 per cent of volume and 6 per cent of value being shipped as unpackaged. All wine styles increased in volume, with the volume of still white wine trebling to 9.4 million litres (13 per cent share of export volume).

Figure 3: Volume and value of exports to mainland China

United Kingdom

In the 12 months to September 2025, Australian wine exports to the UK declined by 7 per cent in value to $337 million and 14 per cent in volume to 191 million litres, the lowest volume shipped to the market since 2002. The majority of the decline was in unpackaged exports, which make up 90 per cent of the volume shipped to the UK. Although they are a small part of exports to the market, premium packaged shipments above $7.50 per litre FOB increased by 16 per cent in volume. 

Continued cost of living pressures, trade consolidation, increased freight costs due to regional conflicts, and increased administrative burden and costs on suppliers and retailers due to changes in alcohol duties and packaging and waste responsibilities have contributed to a suppressed outlook for the market in the near-term.

Figure 4: Volume and value of exports to the United Kingdom

United States

Exports to the US declined by 10 per cent in value to $306 million and increased by 6 per cent in volume to 120 million litres. The increase in volume is driven by higher levels of mostly unpackaged white wine shipments. Unpackaged shipments into the market tend to ebb and flow depending on supply in California and Australia, and are not usually indicative of underlying demand. 

The decline in value is revealing long-term decline in Australian wine exports to the US. In the past five years, the volume of wine consumed in the US has declined by an average of 3 per cent per year. Wine priced at below US$10 per bottle on the retail shelf has been declining at a faster rate – 5 per cent per year[2]. According to off-premise sales data from Circana, 85 per cent of Australian wine sales are in the US$4–US$7.99 price point, meaning that Australia is highly exposed to the decline in this segment of the market. This trend is visible in the latest export figures with most of the decline in packaged exports being in the $2.50 to $4.99 per litre FOB segment, which makes up 92 per cent of packaged volume shipped to the US. 

That being said, the US is currently a very difficult market no matter what price point or source country of the wine. Looking at the overall top 25 brands in 2024 from Impact Databank, most brands declined aside from a couple of premium cask brands and domestic brand Josh Cellars. Tariffs are one of the concerns for imported wine brands. According to the Italian Wine Union, the duty bill for Italian exporters to the US has reached US$61 million, just under the estimate for French exporters (US$62.5 million). Australia has a comparatively low tariff rate (10 per cent vs the EU rate of 15 per cent), but the uncertainty of the situation is resulting nervousness amongst importers, creating difficulties for all imported wines.  

Figure 5: Volume and value of exports to the United States

Canada

In the 12 months to September 2025, Australian wine exports to Canada increased by 12 per cent in value to $165 million and declined by 9 per cent in volume to 62 million litres. The decline in volume is a result of unpackaged exports to the market receding after a surge in this type of exports in 2023 and 2024. The increase in value is driven by packaged exports above $2.50 per litre – with 28 of the top 30 exporters growing in the past 12 months. Many Australian brands in the Canadian market are experiencing increased sales, following the removal of American wines across Canada in response to US tariffs on Canadian products. According to the latest quarterly data from the Canadian liquor boards, Australian wine sales have increased by 36 per cent in Ontario, 19 per cent in British Columbia, and 7 per cent in Québec when comparing to the same quarter in the previous year[3]

Figure 6: Volume and value of exports to Canada

Emerging Asian markets

Excluding mainland China and Hong Kong, Australian wine exports to Asia increased by 7 per cent in value to $363 million and 4 per cent in volume to 43 million litres. Singapore and Malaysia were the largest contributors to value growth, growing by 19 and 24 per cent respectively. By volume, there was strong growth in exports to South Korea, India, and Thailand. While all subject to short term volatility, the top 10 Asian markets (excluding mainland China and Hong Kong), have all grown in export value since 2019 except for Japan, which has stabilised since 2023 (see Figure 7).

Figure 7: Value of exports to top Asian markets (exc. Mainland China and Hong Kong), year ended September

For more detailed export data, please visit the Export Dashboard


  1. Trade Data Monitor
  2. IWSR
  3. EzFocus

 


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This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.