Wine Industry

China is again Australia’s largest wine market by value. The numbers behind that headline are less comfortable. Here is where South Australian wine and China stand in 2026, and what the latest figures show.

A row of six bottles of Barossa Shiraz lined up in the front window at Bar Septimus with white flowers behind

South Australian wine and China since the tariffs

For winemakers in South Australia, China has dominated the last six years. Beijing imposed duties of up to 220 per cent in 2020 and 2021. Australian exports to China had peaked at $1.1 billion in 2019-20. The duties were lifted on 28 March 2024.

Once the duties went, Australian wine began winning back share from France, Chile, Italy and the United States, according to Wine Australia. Recovery was always going to be slow, though. Analysts warned at the time that exports were unlikely to return to pre-2020 levels, given falling wine consumption in China.

The 2026 export numbers

Wine Australia’s report for the year to June 2026 puts exports at $2.30 billion, down 7 per cent. Volume fell 6 per cent to 598 million litres, the first time below 600 million litres since 2004.

Mainland China was the largest market at $756 million, down 15 per cent. The United Kingdom followed at $340 million, down 3 per cent. The United States fell 27 per cent to $229 million.

There were gains. Canada rose 20 per cent to $188 million, its highest in seven years. Singapore rose 11 per cent to $125 million and is now Australia’s largest Asian market outside mainland China. Thailand set a record.

Wine Australia’s Peter Bailey says the evidence points to a lasting change in consumer behaviour rather than a short-term dip. Global wine consumption is at its lowest level since 1961.

A different Chinese wine drinker

Wine Australia’s March 2026 market bulletin describes a Chinese market moving away from formal dinners toward casual occasions. Consumers saved 32 per cent of their 2025 income amid property and employment worries. Even so, mainland China remains the second largest imported wine market in the Asia Pacific, behind Japan.

Tastes are shifting too. Still red wine fell to 84 per cent of Australia’s exports to China in 2025. Still white’s share rose from 4 to 14 per cent.

China’s own wine

Ningxia

China also makes serious wine. Ningxia, on the eastern side of the Helan Mountains, grew from 2,660 hectares of vines in 2004 to 39,300 hectares by 2014. Winters are harsh enough that growers bury the vines in sand and earth from November to March.

International attention

Helan Qingxue’s Jiabeilan won a Decanter trophy in London in 2011, which drew investment into the region. LVMH opened Domaine Chandon China there in 2013, and Pernod Ricard invested as well. Large domestic groups including Changyu and Dynasty followed. By late 2016 the region had 100 wineries, with 80 more under construction.

What it means closer to home

Pressure on exports shows up first in the vineyard. We looked at grape prices in the real cost of cheap wine. For the global picture each week, read our latest wine news.

Hear it from the producers themselves. The Pare Wines new release tasting is on Thursday 29 October, 5 to 8pm, $50, and the Langmeil masterclass follows on Thursday 12 November, $55.

Come and taste it

Bar Septimus pours French and Australian wine by the glass alongside artisan cheese and charcuterie at 220 Grenfell Street, Adelaide East End.

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