Asian markets accounted for the bulk of the $1.4 billion in wine exports out of Australia between Jue 2014 and June 2015, as Australian wine exports to Northeast Asia increased 29% and the value of exports to Southeast Asia increased 18%.
During the 2014/15 financial year ending on June 30, Australia’s wine sector posted a 32% increase in the value of its wine exports to China, valued at more than $200 million. And industry body, Wine Australia, estimates that the country exported 8 million liters of wine to China within the past year – equal to the export volume to the U.S. and Canada combined.
“We ship more than half of our exports above $5.5 per liter to Asia,” says Andreas Clark, chief executive for Wine Australia, “and the average value of those exports is $13.70 a liter compared to $9.11 a liter in Europe and $8.55 a liter in North America.”
Australian wine exports to Japan increased 10% in value to $32 million with the majority of the growth being in bulk wine, which increased five-fold in volume after the removal of tariffs under the Japan-Australian Economic Partnership Agreement. The removal of the tariff on bottled wine is scheduled to be completed within seven years.
Other Asian markets that showed notable growth in Australian wine imports were Malaysia, which saw the value of its imports increase 26% to $31 million, Thailand, which saw imports increase 16% to a value of $12 million, South Korea, which saw imports increase 28% to a value of $7.4 million, and the Philippines, which saw imports increase 19% to a record value of $4.5 million.
In addition to the removal of tariffs strengthening wine exports, Australia is also benefitting from an apparent rebounding in the Chinese market after a relaxation following imposed austerity measures by Beijing to counter corruption, and improved economic conditions in both the U.S. and the UK – two of Australia’s largest markets.