Wine in Australia | The Observatory of Economic Complexity (2024)

FAQs

Wine in Australia | The Observatory of Economic Complexity? ›

Imports In 2022, Australia imported $701M in Wine, becoming the 16th largest importer of Wine in the world. At the same year, Wine was the 79th most imported product in Australia. Australia imports Wine primarily from: New Zealand ($273M), France ($263M), Italy ($90M), United States ($16.7M), and Spain ($12.6M).

Some commentators have suggested that protecting Chinese producers was an important consideration behind Beijing's decision to first impose the tariffs, and that the country's local industry lobby groups were well-placed to campaign to keep them in place.

The Australian wine industry is resilient, with wine grape growing, winemaking, wine exports and wine tourism contributing significantly to Australia's economy.

Innovation and science have played an important role in the success of the Australian wine industry. Refrigerated fermentations, insulated wine tanks and inert gas cover, for instance, were introduced in the mid 1900s and have enabled Australian winemakers to prevent oxidation and retain flavours in their wines.

Australia ranks fifth globally in wine production, behind the traditional wine-producing countries Italy, France, and Spain.

The latest government figures show that Australia had more than 2 billion litres of wine in storage in mid-2023. That is equivalent to approximately two years' worth of production. Some of the excess wine held in storage is spoiling, forcing producers to sell their stocks at sharp discounts.

The tariffs, of up to 218.4%, were first imposed in March 2021 for a period of five years along with a host of other trade barriers on Australian commodities when ties soured after Canberra called for a probe into the origins of COVID-19.

“The industry is in dire straits,” said Kassebaum, who is planning to bring forward his retirement after 25 years in the business. Australia is drowning in wine, with the equivalent of more than 2.8 billion bottles, enough to fill more than 850 Olympic swimming pools, swilling around in storage tanks or barrels.

We have some of the oldest geology and most complex soils in the world. The Australian wine community today is founded on the explorers of the past, who identified the optimal vineyard sites and the sophisticated winemaking techniques that make our fine wines so special.

Yellow Tail was developed for the Casella family winery to enter into the bottled wine market—having previously supplied bulk wine to other wineries. The Yellow Tail brand was developed in 2000 and was originally produced for the export market. It became the number one imported wine to the United States in 2011.

What is the outlook for the wine industry in Australia? ›

In the Wine market, volume, at home is expected to amount to 489.8m L by 2024. Volume, out-of-home is expected to amount to 99.5m L in 2024. Volume, combined is expected to amount to 589.3m L in 2024. The Wine market is expected to show a volume growth, at home of -0.6% in 2025.

Export results reflect challenging global trends. Australian wine exports declined by 2 per cent in value to $1.90 billion and 3 per cent in volume to 607 million litres in the 12 months to December 2023, according to Wine Australia's Export Report released today.

The main destinations of Australia exports on Wine were United Kingdom ($324M), United States ($309M), Canada ($154M), Hong Kong ($122M), and Singapore ($97.2M). In 2022, Australia imported $701M in Wine, mainly from New Zealand ($273M), France ($263M), Italy ($90M), United States ($16.7M), and Spain ($12.6M).

The Perfect Climate for Grapes

Australia's warmer temperature allows for producing elegant, full-bodied wines that are both high in acidity and alcohol. Wines from the Adelaide Hills and Yarra Valley regions, in the cooler southeast of Australia, tend to have more earthy scents and fruity tastes.

Australian wine cost belongs to the cheaper variable costs like labour,cultivation costs of the vineyard ,weather conditions and soil conducive for better and tasty yields . Lastly consumers may prefer other wines if the cost is hiked.

Australia is mainly known for its Shiraz, or Aussiefied Syrah, and Chardonnay varietals. In fact, these two varieties alone account for 44% of its total wine production!

ChAFTA delivers benefits to Australia, enhancing our competitive position in the Chinese market, boosting economic growth and jobs.

According to official import statistics from Trade Data Monitor, total wine imports to China are a third of what they were five years ago, having fallen from 688 million litres in 2018 to 248 million litres in 2023.

During the presidency of Donald Trump, a series of tariffs were imposed on China as part of his "America First" economic policy to reduce the United States trade deficit by shifting American trade policy from multilateral free trade agreements to bilateral trade deals.