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Australian wine exports to China continue to grow

beveragedaily.com by Rachel Arthur24/04/2016  

China has overtaken the UK to become the second largest market by value for Australian wine exports, according to the latest figures from Wine Australia.

China has overtaken the UK to become the second largest market by value for Australian wine exports, according to the latest figures from Wine Australia.

hile exports increased across the price spectrum, the greatest growth was for wines above A$10 ($7.80 USD) per liter, which saw a 91% increase up to A$160m ($124m USD).

The boost in exports was aided by the introduction of the China-Australia Free Trade Agreement (ChAFTA) in December 2015, as well as an increased interest in wine from the growing Chinese middle class.

And the full impact of this free trade agreement is yet to be realized, says Wine Australia,

Australian wine exports continued to show strong growth in the 12 months to the end of March 2016. From April 2015 to March 2016, the value of exports to all destinations grew by 13%, driven by bottled exports, particularly at higher price points.

The US remains the top export market for Australian wines, by value (up 4% to A$442m / $343m USD). However, the latest export figures from Wine Australia show that mainland China overtook the UK to become the second largest market for Australian exports.

“Exports to China grew by 64% to A$397m ($308m USD), despite a slowing economy,” said Wine Australia

“The inclusion of Hong Kong at A$129m ($100m USD) makes China the largest market for Australian wine exports.”

Volumes into China grew by 63% to 72m liters, and average value per liter increased by 1% to A$5.53 ($4.30 USD). However, export growth was particularly strong in the price segments where Australia’s most expensive wines are shipped, showing an appetite for premium wines.