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Australian Wine Exports Reach Post-GFC High of $2.56 billion

By Monday 22 January 2018No Comments

Australian wine exports increased by 15 percent to $2.56 billion in the 12 months ending December 2017, according to Wine Australia’s Export Report released today.

The 15 percent increase in the value of exports is the highest annual growth rate since 2004 and it was also a record-breaking year for volume, with exports growing by eight percent to 811 million litres, a calendar year high.

Wine Australia chief executive officer Andreas Clark said the positives continued with the sector achieving a seven percent increase in average value per litre free on board (FOB*) to $3.16, the highest level since 2009.

“Growing demand for premium Australian wine, particularly in Northeast Asia, increased the value of bottled wine exports by 17 percent to $2.1 billion, while the average price per litre for bottled wine grew by three percent to a record $5.63,” Mr Clark said.

Wine exported in bulk also experienced price increases, with total value increasing by 10 percent to $440 million and average value per litre increasing by six percent to $1.03, the highest average value since 2012.

Mr Clark said it was notable that exports of wines priced above $10 per litre grew by 29 percent to a record $738 million.


Exports to Northeast Asia were the growth driver with exports increasing by 47 percent to over $1 billion for the first time.

Australian wine has experienced outstanding growth in exports to mainland China over the last decade. 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. The value of exports increased by 63 percent to $848 million and volume by 54 percent to 153 million litres. The average price increased by six percent to $5.55 per litre FOB.

There was growth in exports to mainland China across all price points, from entry level/commercial wines through to Australia’s finest wines.

Exports also grew to:
Europe by one percent to $576 million
Southeast Asia by two percent to $165 million; and
Oceania by eight percent to $94 million.

Exports to North America decreased slightly by two percent to $636 million. However, exports of wines to the United States of America (USA) valued at $10 per litre or more (that sell for US$14 or more per bottle retail) increased by eight percent to $45 million.

The growth in premium wine exports to the USA is also evident in retail figures. Off-trade sales figures from sector analyst IRI showed at US$11 or more per bottle, Australian sales grew by 32 percent while the total sales in this segment increased by seven percent in the year ended September 2017.


Australia’s top five markets by value in 2017 were:
China mainland (33 percent of total export value)
United States (18 percent)
United Kingdom (14 percent)
Canada (7 percent), and
Hong Kong (5 percent).

Australia’s top five markets by volume in 2017 were:
United Kingdom (28 percent share of total export volume)
United States (21 percent)
China mainland (19 percent)
Canada (8 percent), and
Germany (5 percent).

It is important to note that 80 percent of wine exported to the United Kingdom and Germany was shipped in bulk containers. This has a significant impact on the reported FOB values that are used in Wine Australia’s Export Report as the value of packaging is not included in the FOB values as it is with products packaged in Australia.

Coming up in WBM – Australia’s Wine Business Magazine…

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