Guide to Export of Australian Wine to China

Australia is the world’s fifth-largest wine exporter with a total area of 135,000 hectares and more than 100 different grape varieties.

Exports now account for 60% of its total production.

On January 22, 2019, the Australian Wine Authority released its new report on Australian wine exports. According to the report, the country is exporting more and more to the world and the demand for wines has increased over the years.

I) Some encrypted data:

• Australian wine exports increased by A$2.82 billion (RMB13.664 billion), representing a 10% year-over-year growth.
• Also, a new record was reached with 850 million liters exported, an increase of 5%. The price per liter also increased by 5% to A$3.32 per liter of wine.

Red wine is still Australia’s most exported wine.

• Its exports increased by 12% to A$2.14 billion.
• Exports of white wines increased by 10% year-on-year to A$607 million.

 

II) Other exporters

a) Exports from China, Hong Kong, and Macau

Exports from China, HK, and Macau accounted for A$1.14 billion and increased by 18%.

b) The U.S. market

The U.S. market declined slightly to A$425 million but remains in second place.

c) The UK market

The UK market is in third place with A$389 million.

III) Exporting Australian wines to China

 

According to the Australian Grape Bureau, the export of Australian wines to China has achieved extraordinary results over the past decade.

a) Evolution

One of the reasons for this is the free trade agreement between China and Australia in 2015.

Australians should continue to quench the thirst for the wine of the increasingly knowledgeable Chinese, thanks in part to the reduction in tariffs effective since 1 January 2018.

b) Renowned Australian wines in China

Penfolds, Yellow Tail, Wolf Blass or Rawson’s Retreat already enjoy great fame in China.

c) Customs

Wine duties currently stand at 5.6% against 14% before the signing of the Sino-Australian Free Trade Agreement.

Pending the complete exemption of Australian wine exporters in 2019, the tariff has fallen to 2.8% in 2018.

d) Number of wine consumers in China

According to a study by the British firm Wine Intelligence, in China, the number of consumers of imported wines more than doubled between 2011 and 2017, from 19 million to 48 million people.

In the first ten months of 2017, China imported 601 million liters of wine worth $2.21 billion (1.88 billion euros), representing 18.92% more in volume and 15.6% more in value than the previous year.

e) China is now Australia’s top wine export destination

According to the UK’s International Wine and Spirit Research (IWSR), China is expected to jump from fifth to second place in the world’s list of the world’s most wine-drinking countries by 2020.

China is now Australia’s top wine export destination.

These exports increased from A$73 million in 2007 to A$846 million in 2017.

f) Evolution of Hong Kong and Taiwan

In terms of more specific cases, Hong Kong has also seen an increase in recent years, from A$36 million in 2007 to A$118 million in 2017.

The State of Taiwan has increased from A$10 million to A$13 million.

g) Chinese market

In the Chinese market, Australia ranks second after France.

However, its average price of bottled wines is at the top of the list.

According to a study by Wine Intelligence, Australian wine drinkers have doubled in China since 2013. Chinese tourism has played a fundamental role in the wine market.

In the Chinese market, the export of bottled wines increased by 27% to A$560 million.

The average price of bottled wines also increased by 14% to A$1.17 per liter.

Read also distribution of Wine in China 

 

Conclusion :

With rising incomes and openness to the world, China has developed in recent years a strong taste for foreign wines.

Chinese consumers have begun to fork out huge sums to import more Australian wines than French wines, Chinese statistics show.

Indeed, the Chinese love of Australian wine is not new. Australian vineyards have had to arm themselves with a good marketing strategy to reach their Chinese clientele. China is expected to increase its wine consumption further by 2020, leaving fifth place for second place, behind the United States, as a major wine drinker.

Gentlemen Marketing Agency is a 100% digital agency based in China that helps foreign Businesses to develop their activity in China 

 

Don’t hesitate to contact us to get free tips and latest solution