China Syndrome continues to damage Australian wine industry

Tough times continue for the Australian wine industry with Australian wine exports declining by 8% in value and 6% in volume in 2025.

Value declined to $2.34 billion and volume to 613 million litres, stats in Wine Australia’s Export Report released today show.

The average value of exports also decreased by 3% per cent to $3.81 per litre Free on Board (FOB).

The reduction in overall exports was largely driven by declines in the value of exports to mainland China and the United States and in volume to the United Kingdom.

There were also markets recording value growth for Australian wine including Canada, Singapore, Thailand and Malaysia, which Wine Australia said indicated areas of opportunity for ongoing market diversification.

Wine Australia manager for mrket Insights Peter Bailey said the overall weakened export performance is consistent with the long-term trend of declining wine consumption in major markets around the world.

“Consumers are reducing overall alcohol consumption in line with wellness trends and in order to save money as the cost-of-living increases," Bailey said.

"For wine exporters around the world, trade barriers and regional conflicts are also making it more difficult and costly to get product into markets.”

Exports to mainland China had the biggest impact on the decline in value, as shipments to the market were down by 17% year-on-year to $755 million, following the initial restocking period after the removal of import tariffs on Australian wine

“While the re-opening of the mainland China market at the end of March 2024 provided some temporary relief in the decline in total exports, the Chinese wine market is one-third of the size it was five years ago - impacting both domestically produced and imported wines,” Bailey said.

“While shipment levels in the first three quarters after tariffs were removed were exceptionally positive, consumer demand has been subdued. Chinese consumer confidence has only made minor improvements since falling to an all-time low in 2022 during the Covid-19 pandemic[- which has negatively impacted consumer spending."

The top five markets by value were: mainland China, down 17% to $755 million, UK down 3% to $343 million, US down 12% to $287 million, Canada, up 12% to $175 million, and Singapore, up 18% to $118 million.

For more info see Wine Australia’s Export Report and Wine Australia’s Export Dashboard.