Wine Australia has released its latest export report for the year ended March 2022, which has shown Australian wine exports decreased by 26 per cent in value to $2.05 billion and 13 per cent in volume to 628 million litres.

The figures highlight the continued impact of the high tariffs imposed on bottled Australian wine exported to mainland China, as well as the tough global market conditions. However key drivers of growth were in markets including Singapore, Hong Kong, Thailand, South Korea, Taiwan and Japan indicating that diversification into new markets is having a positive impact.

Exports excluding, mainland China, declined by three per cent in volume but increased by seven per cent in value to $2.03bn – the highest value since 2010.

Wine Australia General Manager Corporate Affairs and Regulation Rachel Triggs said while the increase in value excluding mainland China was strong at $129m, it did not come close to offsetting the decline in value to mainland China (a loss of $844m).

“Over the past 15 months, Australian wine exporters have had to navigate through an exceptionally challenging operating environment, largely led by the imposition of high deposit tariffs on bottled Australian wine imported to mainland China, the continuing impact of the global freight crisis, and a counter-swing in some markets after COVID-19 related stockpiling in 2020,” Triggs said.

“What the latest Export Report shows is that efforts to diversify and intensify markets is slowly reaping rewards for Australian wine exporters. With the easing of COVID-19 restrictions, we’re seeing the on-premise trade open up in established markets and that has had an impact as demand stabilises.”

The UK is the number one destination for Australian wine exports in value and volume, and in the 12 months ended March 2022, exports to the UK decreased by two per cent in value to $449m and six per cent in volume to 246m litres.

In addition the second ranked market, the United States, also saw value and volume drop, with value down four per cent to $416m and volume down five per cent to 127 million litres.

Exports to these markets surged during 2020 due to COVID-19 stockpiling for the off-premise trade, but demand has since eased as pandemic restrictions relaxed.

Triggs said: “Low inventory after three small consecutive vintages and delays in getting the record 2021 vintage onto ships from the ongoing global freight crisis also contributed to the decline in volume of wine exports. Shipping industry experts to do not expect these issues to resolve until the second half of 2022 at the earliest.”

Australian wine exports declined in all price segments in the year ended March 2022, driven largely by the decline to mainland China and exports valued under $10 FOB per litre to the US and UK.

“However, when excluding mainland China, exports within the premium segment above $10 FOB per litre grew by 47 per cent, with 58 out of 89 destinations receiving exports in this price segment reporting growth during the year. These destinations included Singapore, Hong Kong, Thailand, the US, the UK, South Korea and Taiwan,” Triggs added.

In the 12 months to the end of March 2022, the top five markets by value were:

  • UK, down two per cent to $449 million,
  • US, down four per cent to $416 million,
  • Hong Kong, up 24 per cent to $184 million,
  • Canada, down 13 per cent to $171 million, and
  • Singapore, up 96 per cent to $168 million.

The top five markets by volume are:

  • UK, down six per cent to 246 million litres,
  • US, down five per cent to 127 million litres,
  • Canada, down seven per cent to 51 million litres,
  • Germany, down eight per cent to 34 million litres, and
  • New Zealand, up six per cent to 33 million litres.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

Leave a comment

Your email address will not be published. Required fields are marked *