China tariffs, global freight snarls, and changing consumer habits during the pandemic have caused an 11% slump in the value of Australian wine exports in the year to Sept 30th.

Wine exports declined to A$2.01 billion ($1.3 billion), data from government marketing and research body Wine Australia show. The decline was largely driven by a 92% drop in exports to mainland China, following almost two years of sky-high tariffs which effectively shut the market to Australian shipments.

Excluding China, exports were relatively stable overall, falling 0.2% during the period to A$1.99 billion, though headwinds are expected to continue, Wine Australia’s manager of market insights, Peter Bailey said in a statement.

“While total exports look to be stabilizing, the wine sector can continue to expect market fluctuations, as rising inflation and interest rates may put pressure on margins and curtail consumer spending in key markets,” he said.

The value of exports to the US, the largest export market, grew 5% to A$412 million, driven by delays in shipping a record 2021 Australian vintage.

Exports to its second biggest market the UK dipped by 14% to A$395 million, as many exporters brought forward shipments ahead of the 2020 Brexit deadline. Consumption trends also changed, with demand weakening as venues reopened following the lifting of Covid-19 restrictions.