Australian wine exports slump as global consumers drink less

A global trend of people drinking less alcohol amid the cost-of-living crisis is behind a slump in Australian wine exports.

The value and volume of wine heading overseas dropped last year as growers also battled a worldwide glut.

Australia's exports fell by 2 per cent in value to $1.90 billion and 3 per cent in volume to 607 million litres during the 12 months to December 2023, the latest report by industry body Wine Australia said.

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The document said Australian growers were bearing the brunt of people either abstaining from drinking wine or drinking less but being selective about their choice of wine.

"This trend has seen wine consumption at premium wine segments ($US10 or more per bottle) grow, while the commercial end ($US10 or less per bottle) has been declining," the report said.

"These trends disproportionally affect Australia, given the majority of Australian export volumes are in the commercial price segments."

Just 44 of the 112 export markets for Australian wine imported more in value during the year than in the previous one.

North America and Europe recorded a drop in Australian wine export value, although they were smaller than those in recent years.

But markets in Asia provided some cheer for wine exporters, with Hong Kong and Singapore recording increases.

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An expected removal of crippling Chinese tariffs on Australian wine exports this year is giving producers further hope.

Shipments to China, which was the most valuable market for Australian wine, were previously hit with tariffs of up to 220 per cent in 2020 after Canberra-Beijing relations deteriorated.

The loss of the key overseas market together with a global oversupply of red wine left Australia with its own wine glut, estimated last year to be 2 billion litres, or 2.8 billion bottles, a Rabobank study found.