South Australia leads nation in wine export value
South Australia continues to lead Australia in exporting high-value wine, according to the 2024 Wine Australia Export Report.
Last year, 16.7 per cent of total exports originated from South Australia but they contributed $1.3 billion to Australia’s total export value of $2.55 billion, a 70 per cent year-on-year increase.
Wine Australia Market Insights Manager, Peter Bailey said the growth is largely driven by exports to China after tariffs imposed on Australian bottled wine were removed in March.
“If you’re looking at total exports to China, 85 per cent of the growth has come from South Australia,” he said.
The growth has also impacted the share of red wine exports with most shipments to China being Cabernet or Shiraz blends, also marking significant year-on-year increases.
South Australian wine export data from the 2024 Wine Australia Export Report. Graphic: Wine Australia
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However, exports out of the state are yet to regain pre-tariff levels.
Exports peaked in October 2020 at approximately $900 million, compared to $712 million in 2024.
Bailey said while overall the performance is positive, it is difficult to determine if these numbers will recover.
“Because we’ve been out of the market so long, a lot of this increase would be restocking into the market,” he said.
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“We do know that Chinese wine consumption overall is much lower than it was before the tariffs were imposed.
“Overall imports into China are now a third of what they were five years ago… but it’s important to note that imports outside of Australia into China were falling prior to the imposition of the tariffs, while Australian wine exports were still growing against that trend.”
Global data from the 2024 Wine Australia Export Report. Graphic: Wine Australia
A decline in wine consumption is not unique to China.
On a global scale, total exports declined by 13 per cent in value to $1.64 billion, largely driven by a large increase in shipments to Hong Kong in 2023 in anticipation of the removal of the tariffs.
Hong Kong recorded a $125 million value loss in 2024, while the United Kingdom recorded a $9 million value loss and the United States dropped $38 million to $325 million total value.
Bailey said declines in established wine markets were linked to various conditions.
“We’re still adjusting to an oversupply, particularly for red wine, and also grappling with a long-term decline in global wine consumption and what’s driving health and wellness concerns, as well as cost of living pressures,” he said.
“On top of that, shipping delays and increased shipping costs due to regional conflicts are also making it harder for wine exporters to get their products into some of those markets.
“That’s not just impacting Australian exports, but also other wine exporting countries too.”
