China is Australia’s most valuable overseas wine market, with exports growing by 7 per cent to reach A$1.11 billion in the 12 months to 31 March 2019.
Wine Australia’s Regional General Manager David Lucas welcomed the continuing sustainable growth as evidence of China’s love for Australia’s fine wines.
‘China is Australia’s largest market for wines of $10 per litre and above (Free On Board). Shipments of these wines increased by 18 per cent to $603 million in the last 12 months.
‘As we are seeing around the globe, wine drinkers are moving towards higher value wines. In China, this has led to a reduction of 14 per cent in volume. The decline of the lowest priced wines and growth of the higher priced wines has resulted in a 24 per cent increase in the average value of wine shipped to China to $7.20 per litre FOB.
‘Starting on 21 May , Wine Australia will be hosting its annual Roadshow to allow the wine trade and media to meet face-to-face with Australian wine producers and to taste exceptional Australian wines’, Mr Lucas said. The amplified presence at the Roadshow will be underpinned by a consumer retail promotion running across major supermarket chains Ole’ and BLT for the month of May, further raising awareness of Australian wine.
The total value of Australian wine exports increased by 5 per cent to $2.78 billion in the 12 months to March 2019.
The average value of exports increased to $3.41 per litre FOB, the highest level since 2009, which was principally driven by lower volumes of exports below $2.50 per litre FOB. The 9 per cent decrease in exports below $2.50 per litre FOB also contributed to a 3 per cent decrease in the total volume of exports to 814 million litres (90 million 9-litre case equivalents).
Nearly all destinations imported more Australian wine in the year ended March 2019 than the previous period. North America was the exception, with excellent growth in exports to Canada unable to outweigh the decline in exports to the United States of America.
The regions in growth are: