Chinese Taste Is Growing For Expensive Australian Wines

Posted: Jul 23, 2019

Australian wine exports to China rose to a new high as the world’s second-largest economy developed its palate for premium labels.

The value of exports to Australia’s biggest customer increased 7% to A$1.2 billion ($845 million) in the 12 months to June 30, Wine Australia said Monday. That’s despite overall volumes to China falling 16% as demand for cheaper varieties declined -- a trend that was echoed globally.

Australian labels grew in popularity on U.S. wine lists, with export values rising 2% to A$432 million -- after the second-biggest market shrank in the prior year. Meanwhile, the value of exports to the U.K. dropped 3% to A$373 million.

Quality Not Quantity

Value of Australian wine exports rises even as volume falls

Source: Wine Australia

Note: 12-month period to June 30

The total value of Australian wine exports grew by 4% to A$2.86 billion, some way off last year’s 20% surge. Overall export volumes fell 6%, driven by falling shipments of wine costing on average less than A$2.50 per liter. Wine fetching between A$100 and A$200 a liter delivered the fastest growth of 102%, while last year’s main driver -- the A$50-A$100 price bracket -- declined 17%.

By Sybilla Gross 
July 21, 2019

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