Pic: getty/shaith

China continues to be a thriving market for Australian wine exports, with the value of wine exports to the country up 63% in 2017.

Growth was seen across all price points, from entry level through to fine wines. The value of wine exports increased by 63% to $848m AUD ($676m USD) and volume by 54% to 153 million liters. The average price increased by 6% to $5.55 ($4.42 USD) per liter FOB.

“Australian wine has experienced outstanding growth in exports to mainland China over the last decade,” says Wine Australia as it released its 2017 export figures this week.

“The implementation of the China–Australia Free Trade Agreement in 2015 provided impetus to an already strong market. The export figures for 2017 suggest Australia is well-placed for this trend to continue.”

Trade agreements and growing middle class consumer base

China overtook the US to become Australia’s top market for wine exports (by value) in 2016, a position it maintained in 2017. A little over a decade ago, exports to China were valued at just $27m AUD ($21m USD): today that has reached $848m AUD ($676m USD).

The China-Australia Free Trade Agreement, which cut import duties, is credited as a key factor for growth, along with a growing Chinese middle class with an increased interest in wine.

China now makes up 33% of total Australian wine export value: well ahead of the other top export markets of the US (18%), UK (14%), Canada (7%) and Hong Kong (5%).

In volume terms, it is the third largest market, after the UK and US.

Australia is the second biggest wine exporter to China, coming in after France.