Australian winemakers toast loyal Chinese consumers

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By Xin Xin, Alexis Hooi (China Daily) 08:40, March 31, 2025

Tina Tian, founder of Beijing Mellow Rouge Trading, teaches a wine tasting class in Beijing. (Photo/China Daily)

Chinese consumers' and Alexis Hooi in Sydney importance to Australia's winemakers has been uncorked since tariffs were lifted, at a time when its industry faces major challenges of oversupply and overfamiliarity in the global market.

In the 12 months to December, Australian wine exports grew by 34 percent in value to A$2.55 billion ($1.59 billion) and by 7 percent in volume to 649 million liters, according to the government statutory authority, Wine Australia.

The increase was fueled by high levels of shipments to the Chinese mainland between April and December 2024, after tariffs on Australian bottled wine were removed at the end of March 2024.

In the 12 months to December, 84 million liters of wine, worth A$907 million, were exported to the Chinese market, the latest figures from Wine Australia showed.

Chinese mainland consumption "continues to be a very important market for Australian wine, having now regained its position as the No 1 destination market for Australian wine exports", a Wine Australia spokesperson told China Daily.

The value of Australian wine exported to China now exceeds the United Kingdom (A$352 million), United States (A$325 million) and Canada (A$156 million) combined, the spokesperson said. The exports to the Chinese mainland for the 12 months to December reflect the premium perception of Australian wines in the Chinese market, the spokesperson said.

"Australian wine is well regarded in China for its consistent high quality at great value. The diversity and range of wines available from Australia, including fruit-forward styles from well-known varieties as well as more complex and refined styles, have helped to attract Chinese consumers, and establish a positive reputation for Australian wines," the spokesperson said.

Oak barrel wine storage tanks in the winemaking room of Hungerford Hill winery. (Xin Xin/China Daily)

Evolving tastes

Pia Piggott, an Australian viticulture analyst at agribusiness banking cooperative Rabobank, said that "the comeback from China has been very positive, it's been a lot higher, at least from a value perspective, than expected".

Regaining Chinese market share "in such a short space of time is really positive for local growers", she told China Daily.

"There're still a lot of challenges in the industry. Vineyards are long-term investments and any changes in markets come with a lot of lag, so the oversupply situation has been drawn out quite far because of the structure of the market itself," Piggott said. "As we're going through these next few years, we'll start to see the oversupply reduced …there's a lot being done, but it will take time," she said.

Many Australian winemakers are catering to evolving Chinese consumption choices in order to boost sales.

Red wine has traditionally been Australian winemakers' largest export, representing more than 90 percent of the volume shipped to the Chinese mainland.

" (But) we are seeing increased interest in lighter styles including whites, rose and sparkling, as wine drinkers in China become more open to exploring other wine styles", the Wine Australia spokesperson said.

"Trends including convenience, lighter and refreshing wine styles, and emerging varieties are driving new opportunities for the wine sector. Products that align with these trends will likely have appeal in China, particularly with the younger consumers (25 to 39 years) who are interested in discovering new and different wines, including premium imported wine," the spokesperson said.

"Across the globe there is growing interest in 'no' and 'low' alcohol wines aligned with the health and wellness and moderation trends, and this is also evident in China. This trend is especially prevalent among older consumers in China who are drinking less alcohol in general."

Tina Tian, founder of Beijing Mellow Rouge Trading, said Australian wines have gained significantly in popularity among Chinese consumers due to their unique flavors and high cost-performance ratio.

Tian's company has been in the sector for 15 years and specializes in importing original wines from major wine-producing regions around the world.

She said that Australian wines have a solid foundation in the Chinese market. A wine such as shiraz, known for its rich fruit aromas and full-bodied taste, is particularly suitable for first-time wine drinkers and pairs well with Chinese cuisine, Tian added.

Many Australian wines are sold in mid-range Chinese supermarkets, with moderate prices that align with Chinese consumers' shopping habits, Tian said.