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Australian wine exports declined by 2% in value and 3% in volume in the 12 months to December 2023, Wine Australia has reported.

Value exports are now worth AU$1.90 billion, and 607 million litres of wine were exported from Australia over the 12 month period.

Europe and North America drove the reduction in Australia’s export value over the year, declining by 7% and 12% respectively.

Europe and North America’s respective shares of the export value have dropped to 29% and 27%.

Chinese tariffs on Australian wine have crippled the country’s wine producers for three years, but Asia might be a bright spot for Australian wine exports.

China, which was previously Australia’s biggest exporter, is no longer a major market.      The country has imposed crippling tariffs on Australian wines since 2020, wiping AU$1 billion off exports in 2021 alone.

Officials from both countries are thought to be negotiating a review of the tariffs, and there are hopes that a solution could be reached in a matter of months.

Outside of China, Hong Kong and Singapore are showing promise.      Value exports to Hong Kong were up 74% in 2023 to AU$290 million, accounting for a 15% share of the total.

Singapore, which now accounts for a 7% share of the total export value, saw a 1% rise in value to AU$133 million.

Bailey called the two countries “key trading hubs in the Asian region”.      He said: “Hong Kong and Singapore were stand out destinations for Australian wine in Asia, driving the growth of value to the region.      Further, the number of exporters to Hong Kong also grew – up 138 export businesses to a total of 531 in 2023.”

Some of the wines are shipped on to other markets.      With China’s tariffs acting as a blockade, this may explain the significant jump in value exports to Hong Kong in the last year.