Author: Sarah Roberts, Regional Manager – Asia Pacific, Wine Australia
For Australian wine importers, distributors and producers alike, the opportunities in Asia remain significant, but long-term success depends on navigating this evolving market.
March 29, 2024 marked an important milestone for Australian wine: after a three-year trade freeze between the two countries, China lifted import tariffs on Australian wine. But renewed access to Australian wine’s No. 1 export destination by value has not restored export volumes overnight.
At its peak in 2019, Australia exported AU$1.2 billion of wine to mainland China. After an initial restocking period, those numbers have plateaued, with exports in 2025 at AU$754.9 million. Indeed, the past two years have shown just how much the Chinese and Asian landscapes have evolved. Across the region, wine markets are entering a more disciplined and competitive phase, shaped by shifting consumer behaviour, tighter portfolio strategies, and a stronger focus on sustainable value growth.
In China, a post-reopening reset
Credit: © Australian Wine
China’s wine market is undergoing a reset; consumers are moving away from formal occasions, such as gift-giving and corporate banqueting, towards more casual, intentional drinking moments. That has contributed to the wine market in China shrinking to one-third of its size five years ago. This does not mean that Chinese consumers have abandoned wine; rather, the way wine is purchased and consumed has evolved. One could argue that the prevalence of more official and customary occasions for wine artificially inflated the demand, and the next phase reflects a truer baseline of consumption.
Importers are also becoming more cautious with inventory. Rather than holding large volumes of stock, smaller consolidations are now an important part of the landscape, as buyers work to manage risk. At the same time, the rapidly evolving e-commerce ecosystem is reshaping buyer behaviour. IWSR forecasts online wine sales in China to increase at a value CAGR of +8% between 2022 and 2027, outpacing spirits (+5%) and beer, cider and RTDs (+6%). This growth is giving buyers greater access to real-time sales data, enabling more responsive, data-driven ordering and tighter stock management.
These changing dynamics represent a shift in the market, with clearer visibility into the real demand for wine and its role in consumers’ lives. Partners who can be agile and adapt to these changing market dynamics and evolving consumer trends will be well-positioned to capitalise on the emerging opportunities.
In Asia, a new export landscape
Credit: ©Australian Wine
Beyond China, many Asian wine markets are recalibrating as well. Buying behaviour is becoming more disciplined, portfolio strategies are being refined, and consumer expectations are evolving. Across Asia, wine represents a relatively small share of total alcohol consumption. Cross-consumption is high, meaning wine competes with beer, spirits and other locally produced beverages for its share of total alcohol spend. As a result, success increasingly depends on clear positioning and relevance within a crowded beverage landscape.
Despite these dynamics, exports of Australian wine to Asia, excluding China, remain resilient. In 2025, exports increased by 1% in value to AU$494.5 million and 2% in volume to 51.4 million litres. Southeast Asia was the standout performer, with exports rising by 6.4% in volume and 28.6% in value. Average value per litre for Australian wine exports to Southeast Asia increased by 21%, driven largely by growth in the premium AU$10 free on board (FOB) and over segment.
The Asia-Pacific region is expected to account for 80% of global middle-class growth by 2034, according to the United Nations. Within Asia-Pacific, Southeast Asia remains one of the world’s fastest-growing regions, with countries like Vietnam, Indonesia and the Philippines consistently posting strong GDP growth. Despite short-term global headwinds, such as trade barriers and inflation, the region’s characteristics – young populations, urbanisation, digital adoption and rising middle class – support sustained economic growth.
Across Asia, wine consumption is becoming increasingly occasion-led and ranging from at-home drinking and casual dining to more formal celebrations. From a trade perspective, this means a multi-channel strategy encompassing retail, on-premise and e-commerce is now essential to meeting consumers where they are.
Although Australian wine export value growth across the region was modest at 1%, consumers continue to invest in products that reflect their preferences. This highlights the need for clearly positioned portfolios aligned with local market value and relevance.
Structuring premiumisation
Premiumisation remains a key driver of sustainable value growth across Asian wine markets. For importers and distributors, this relies on having a clearly structured portfolio with distinct tiers and differentiation between price points. A well-defined offering helps consumers navigate their wine journey and provides opportunities to trade up over time.
As consumers become more experienced, discovery increasingly shapes their purchasing decisions. Many begin with familiar varieties before gradually exploring new wine styles and regions as their confidence grows. This progression is central to premiumising the category.
Australian wine is uniquely positioned to support this trade-up journey. Its diversity of regions and varieties allows producers to offer a wide range of styles and price tiers, from approachable entry-level wines to premium and luxury offerings. While consumer motivations evolve over a lifetime, the desire for consistent quality and trust remains constant – and Australia has a strong reputation for delivering both.
Building resilience
Global volatility has reinforced the importance of diversification. The impact of the tariffs in China highlighted the risk of over-reliance on any single market or segment, prompting many businesses to pursue a more balanced approach to growth.
Diversification can take several forms: managing exposure across delivery channels, building portfolios across price tiers, or offering a broader range of wine styles to appeal to both established and emerging consumers. By spreading risk across multiple segments, businesses can build greater resilience and position themselves to navigate changing market conditions more effectively.
Innovation also plays a critical role. Over the past year, demand for white and sparkling wines has grown across many Asian markets, and Australia has been well-positioned to capitalise on this opportunity. Combined exports of these categories from Australia to Asia increased by 9.9% in value in 2025. This shift towards lighter, fresher styles reflects the growing influence of younger consumers, particularly female drinkers, as well as the rise of more informal drinking occasions.
Meanwhile, red wine continues to perform strongly in premium segments. The average value per litre of Australian red wine exports to Asia increased by 5.4% in 2025, indicating sustained interest in premium, regionally expressive wines.
Australia’s innovative approach also extends to sustainability. As of 2024, the equivalent of 211 million bottles of Australian wine carried the Sustainable Winegrowing Australia trust mark, with 90% of Australian wine regions represented by Sustainable Winegrowing Australia members. Partnering with innovative, sustainability-focused producers can create value across the supply chain by supporting business goals and meeting the growing expectations of environmentally-conscious consumers.
Moving beyond transactional trade
Strong partnerships are fundamental to success, and Australia has a long history of working closely with businesses across Asia to build knowledge, confidence and trust in Australian wine.
Each year, Wine Australia delivers a comprehensive programme of activities across the region, spanning education, in-market events and strategic collaborations. These initiatives are designed to build trade capability, reinforce premium positioning, and drive sustainable category growth. Continued investment in education programmes, the “Australian Wine Discovered” online resources, and high-impact market activations ensure both trade and consumer audiences have access to relevant, high-quality learning and engagement opportunities.
Collaboration across the wider industry further strengthens these efforts. Initiatives between Australia and China in areas such as winemaking, research and innovation have helped foster deeper industry connections, supporting a partnership built on shared expertise and long-term sustainability rather than purely transactional trade.
Together, these activities play a vital role in shaping a more informed, connected and resilient market for Australian wine across one of the world’s most dynamic regions.
As Asia’s wine markets continue to develop, the next phase of growth will reward businesses that take a strategic and collaborative approach. Success will increasingly depend on having the right partners to support portfolio development, diversify offerings, innovate in style and sustainability, and build knowledge and confidence through education. With its diverse regions and varieties, consistent quality, commitment to innovation and sustainability, and long-standing investment in trade and market development, Australia is well-positioned to navigate this evolving landscape and capture the full potential of Asia’s emerging wine opportunities.
About Sarah Roberts
Sarah Roberts is the Regional Manager for Asia Pacific at Wine Australia, bringing more than a decade of experience driving strategic marketing initiatives across the region. Raised in the Adelaide Hills and immersed in wine culture from an early age, she naturally gravitated toward a career in the industry.
