The revival of the Chinese market has been the primary driver behind a 13 percent surge in Australian wine export value in the year to June 2025, an industry report has revealed.

The 13 percent growth to 2.48 billion Australian dollars ($1.62 billion) marked a strong rebound after China lifted tariffs on Australian bottled wine in March 2024, Wine Australia reported Tuesday.

The year-on-year increase in exports was almost entirely driven by the Chinese mainland following the tariffs removal, said Wine Australia, the government statutory corporation that promotes and regulates the industry.

China led Australian wine exports by value, rising 123 percent to 893 million Australian dollars and surpassing Britain and the United States, while Britain stayed the top destination by volume at 204 million liters despite a 6 percent decline, it said.

The average export value rose 10 percent to 3.88 Australian dollars per liter FOB (Free on Board), reflecting a shift to higher-value markets, according to Wine Australia.

Despite strong value growth, Australian wine export volumes rose only 3 percent in the same period, it said.

Although increased demand from China supported exports, global challenges persisted as wine exports outside the Chinese mainland dropped 11 percent in value and 6 percent in volume, Wine Australia reported.

Persistent declines in key markets like the US, Britain, Germany, and New Zealand weakened exports, caused by reduced Australian production and soft global demand, it said. (1 Australian dollar equals $0.65)