The latest export data released by the Australian Wine Association shows that after Beijing imposed a tariff of 218%on Australian wine at the end of 2020, the Chinese market has changed from the largest wine export destination in Australia to one of the smallest destinations, and now exports to China account for only 1%. The average value of Australian wine sold to China also fell by 65%, with an average of $4.09 per liter.
Long before the emergence of the COVID-19, Australian wine sales to China reached $1.1 billion. Chinese drinkers regarded Australian wine as their favorite product, and Australian wine replaced French wine as the most popular wine in China. However, the tariff introduced at the end of 2020 has caused damage, which makes it almost impossible for Australian wine manufacturers to remain competitive in China.
The collapse of the Chinese market has dragged down total exports. According to the latest export data of the Australian Wine Association, in the year ending June 30, 2022, the export volume of Australian wine fell by 10%to 625million liters, and the export volume fell by 19%to US $2.08 billion.
The five markets with the highest export volume of Australian wine are the United States, with an increase of 9%to 436 million Australian dollars; Britain, down 10%to 421million Australian dollars; Canada, down 5%to 174 million Australian dollars; Hong Kong, China, fell 9%to $170million; Singapore, up 49%to $169million.