April 30, 2015
In the 12 months to the end of March 2015, Australia’s wine market in China saw 20% growth, reaching a value of A$242 million (US$189 million) with China remaining the top destination for Australian premium wines, according to a recent report by the Australian Grape and Wine Authority (AGWA).
Bulk wine exports increased an impressive 77% to 5 million liters, while bottled exports saw record growth of 15% to 39 million liters. This growth was primarily driven by the higher and lower priced segments, with bottled wines below A$5 per liter increasing 25% to 24 million liters, and bottled exports prices above A$7.50 per liter were up 12% to 7 million liters.
Exports to Japan also increased 20% to a record 11 million liters after the Japanese tariff on bottled wine was cut from 15% to 11.3% in the first year following the signing of the Japan-Australia Economic Partnership Agreement last July, and the tariff on bulk wine was cut immediately to zero. The elimination of the bulk wine tariff resulted in a jump in bulk wine exports to Japan of 414% in the first quarter 2015 compared to the same quarter in 2014.
Other Asian markets that saw significant growth were:
Thailand – saw growth of 47% to a volume of 3.6 million liters and a value of A$14 million
Malaysia – saw growth of 10% to a volume of 3.2 million liters.
Taiwan – saw growth of 33% to 1.7 million liters
Philippines – saw growth of 22% to 1.2 million liters, and a jump in value to A$5.6 million.
AGWA’s chief executive, Andreas Clark points to the depreciating Australian dollar, the 2014 free trade agreement with Japan, a recovery in the Chinese market following austerity measures, and general positive economic conditions in Australia’s main export markets of the U.S. and UK positively affecting other markets as supporting factors for this export growth.
The UK remains Australia’s biggest export wine market by volume, however, Andreas Clark points out to Beverage Daily, “Asia continues to be a key driver of growth with more than half of exports with average in the above A$7.50 per liter segment shipped to Asian markets with the average value of exports to Asia A$18.77 per liter.”
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