For many years now, China has been the boom market for Australian wine, helping drive our exports and wine industry profitability to rarely seen heights. But after the implementation of 180%+ tariffs late last year, all that has changed and China has gone from hero to (almost) zero.
So today, armed with the latest Wine Australia export figures, we’re answering the question – who is buying Australian wine now, and where are the opportunities?
In the year from 2019-2020, Australia exported well over $1.1 billion dollars worth (121 million litres) of wine to China. At the current pace, we’ll be lucky to export $26 million worth in 2021-2022.
That’s a lot of wine that needs a new home. Almost 100 million litres, which is more than Canada & Germany combined.
But there’s good news too.
Sure, China is now a wine export black hole, but bright spots are everywhere. Like the gateway (or back door) to China, Hong Kong, which is up 111% in value over the last 12 months.
Some of our oldest markets are enjoying absolute boom times too. The UK is up a giant 23% to $472 million worth of wine. Singapore, Japan and even NZ markets are all up in value too. Exports increased to the UK, Singapore, South Korea, Malaysia, Taiwan and Hong Kong by a combined $240 million.
So the question is, what’s in it for you and other wine producers?
Well, besides reaching out beyond China to other markets, there is another market that is well worth your attention – here in Australia.
During our extended lockdowns, Australian drinkers are increasingly looking to their own country’s wines in an act of parochialism. According to the Wine Intelligence Australian Wine Landscapes, locals are buying 24% more Australian wine than they were pre-pandemic.
More importantly, the long term trend identified in the report is for consumers to spend more on a bottle of wine, with a ‘stable core of weekly drinkers’ who are spending more than ever before.
Finally, if you’re looking for where to focus your energy on, then online sales should be your focus. Estimates from IBISWorld suggest that In the 12 months to Feb 2021, monthly online sales grew by 49.0% year-on-year.
More importantly, the revenue for the online shopping industry is projected to rise at an annualised 6.2% over the five years through 2025-26, to reach $46.7 billion.
Thankfully, WINEDEPOT can help here. Our MARKET platform allows you to sell to Australia’s best licensed venues. Our partnerships with Vivino, eBay & Amazon also ensure that your wines get in front of Australia’s wine consumers.
Get in touch so we can help your business grow.