Grapes market in Australia

Earlier Report Observations

Between 2018 and 2020, the Australian grape market was initially supported by vineyard expansion and growing exports, particularly to China, facilitated by tariff reductions under the China-Australia Free Trade Agreement. However, production and market volume declined in 2019 as some growers exited the sector and climatic challenges affected yields. The downturn continued in 2020 when the COVID-19 pandemic caused labor shortages, and China's imposition of high tariffs on Australian wine in November sharply reduced demand for wine grapes, further contracting the market.

A sharp production rebound in 2021 led to a market surplus and a significant drop in grape prices, exacerbated by the loss of the Chinese export market and a global wine oversupply. This surge in volume was partly driven by the industry's adaptation to new consumer trends, such as demand for healthier, lower-alcohol products. In 2022, extreme weather conditions and persistent weak global demand caused the market volume to fall again, despite a partial recovery in Chinese demand following the removal of punitive tariffs.

By 2023, the market volume had declined further as the industry focused on diversifying export destinations and introducing proprietary grape varieties. The reopening of the Chinese market in March 2024 set the stage for improved export prospects, though supply-chain adjustments and shifting consumer preferences toward healthier options continued to shape the market's trajectory.

Production grapes in Australia

In kind, 2018-2021, K t

From 2018 to 2021, Australia ranked as the world's 12th largest producer of grapes.

Top producers of grapes, 2018-2021

World map of production of grapes, 2018-2021

Following two years of decline, Australia's grape production volume increased. In 2021, the country produced 2 227 thousand tonnes of grapes, representing a significant year-over-year growth of 51.0%. Between 2018 and 2021, production rose by 33.9%, which translates to an annualized growth rate of 10.2%. The lowest production level was recorded in 2020 at 1 475 thousand tonnes, while the largest decline occurred in 2019 with a drop of 6.6%.

Annual dynamics of production in Australia in kind, 2018-2021, K t

In value, 2018-2021, M $ US

After two years of decline, Australia's grape production value increased. In 2021, the output of grapes was valued at 6 459 million US dollars, marking a sharp year-over-year advance of 54.3%. Between 2018 and 2021, production value grew by 47.4%, equating to an annualized rate of 13.8%. The minimum value was recorded in 2020 at 4 185 million US dollars, with the largest decline occurring in 2019 at 4.3%.

Annual dynamics of production in Australia in value, 2018-2021, M $ US

Exports grapes from Australia

Exports in kind, K t

Following two years of growth, Australia's grape exports declined. In 2021, the country exported 124.5 thousand tonnes of grapes, amounting to a notable year-over-year decrease of 22.3%. Between 2018 and 2021, exports increased by 7.6%, which corresponds to an annualized growth rate of 2.5%. The highest export volume was recorded in 2020 at 160.2 thousand tonnes, while the largest increase occurred in 2019 with a rise of 31.0%.

Annual dynamics of product's exports from Australia in kind, 2018-2021, K t

Throughout the period from 2018 to 2021, the three largest markets for Australia's grape exports in volume terms were China, Indonesia, and Japan. Together, these markets accounted for 59.1% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Australia in kind, 2018-2021

Exports in value, M $ US

After two years of increase, Australia's grape export value declined. In 2021, exports amounted to 361.2 million US dollars, indicating a robust year-over-year decrease of 20.6%. Over the period from 2018 to 2021, export value grew by 18.5%, with a compound annual growth rate of 5.8%. The maximum value was recorded in 2020 at 454.6 million US dollars, while the largest increase occurred in 2019 with a rise of 34.2%.

Annual dynamics of product's exports from Australia in value, 2018-2021, M $ US

From 2018 to 2021, China, Indonesia, and Japan remained the key destinations for Australia's grape exports in value terms. China accounted for 38.2% of export value, Indonesia for 11.2%, and Japan for 8.4%. Together, these three markets represented 57.8% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Australia in value, 2018-2021

Imports grapes to Australia

Imports in kind, K t

In 2021, Australia's grape imports amounted to 27.9 thousand tonnes, indicating a solid decrease of 22.5% compared to the previous year. Over the period from 2018 to 2021, imports decreased by 27.4%, with a compound annual decline rate of 10.1%. The largest increase was recorded in 2020 with a rise of 4.9%.

Annual dynamics of product's imports to Australia in kind, 2018-2021, K t

From 2018 to 2021, the United States and Turkey were the dominant suppliers of grapes to Australia in volume terms. Together, they accounted for 83.8% of total imports, with other destinations each representing relatively small shares.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Australia in kind, 2018-2021

Imports in value, M $ US

Australia's grape imports declined for the third consecutive year. In 2021, imports registered 82.0 million US dollars, representing a 15.5% decrease year-over-year. Between 2018 and 2021, imports fell by 25.4%, equating to an annualized decline rate of 9.3%.

Annual dynamics of product's imports to Australia in value, 2018-2021, M $ US

Throughout the period from 2018 to 2021, the United States and Turkey remained the key partner countries for Australia's grape imports in value terms. Together, they held a combined share of 87.1% of total import flows, with other partners accounting for the remainder.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Australia in value, 2018-2021